{"id":538543,"date":"2026-02-19T10:59:32","date_gmt":"2026-02-19T10:59:32","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=538543"},"modified":"2026-02-19T12:26:57","modified_gmt":"2026-02-19T12:26:57","slug":"strong-execution-helps-bam-construction-uk-back-to-profit","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/financial\/strong-execution-helps-bam-construction-uk-back-to-profit-19-02-2026\/","title":{"rendered":"\u2018Strong\u2019 execution helps Bam Construction UK back to profit"},"content":{"rendered":"

The UK construction arm of Netherlands-based Royal Bam has bounced back into the black with \u201ca solid increase\u201d in turnover and \u201cstrong\u201d project execution.<\/span><\/p>\n

Bam Construction UK generated adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of \u20ac31.1m (\u00a327.1m) in the year to 31 December 2025, according to<\/span> Royal Bam\u2019s<\/span><\/a> annual results, announced this morning.<\/span><\/p>\n

This marked a comeback from the previous year\u2019s EBITDA loss of \u20ac27.4m.<\/span><\/p>\n

Turnover rose by 7 per cent from \u20ac1.05bn to \u20ac1.12bn, as Royal Bam said the start of new projects in 2025 helped to drive a \u201csolid increase\u201d in UK construction revenue.<\/span><\/p>\n

It added that \u201cstrong execution and a<\/span> disciplined, selective approach to tendering<\/span><\/a>\u201d supported the return to profitability last year.<\/span><\/p>\n

Elaborating on this theme, Bam UK & Ireland chief operating officer John Wilkinson told\u00a0Construction News\u00a0<\/em>that the construction business has actively sought to avoid traditional single-stage, fixed-price jobs.<\/p>\n

\u201cThose days are basically past us,\u201d he said. \u201cWe’re very much focused now on two-stage [contracting], with pre-contract phases that mean we can mature the design and have confidence in the pricing because of that.<\/span><\/p>\n

\u201cW<\/span>hen you went into projects with immature design, that’s when you get problems, and that’s when both parties lose.\u201d<\/span><\/p>\n

The group\u2019s UK construction operations delivered a profit margin of 2.8 per cent last year compared with -2.6 per cent in 2024.<\/span><\/p>\n

Royal Bam cited project milestones during the year such as the eventual completion of<\/span> the troubled Co-op Live arena in Manchester<\/span><\/a> and the<\/span> opening of the Silvertown Tunnel<\/span><\/a> in east London.<\/span><\/p>\n

Other contract wins in 2025, not mentioned in today\u2019s announcement, included a \u00a3100m job from British Land to<\/span> overhaul the 34-storey Broadgate Tower<\/span><\/a> (pictured) near Liverpool Street station in London, plus a \u00a345.4m Shetland ferry infrastructure contract.<\/span><\/p>\n

In the education sector, Bam is <\/span>rebuilding Framwellgate School in Durham under a \u00a367.9m<\/span><\/a> deal awarded in November by the Department for Education (DfE) under its CF21 framework.<\/span><\/p>\n

The firm was also announced as one of 42 contractors on the<\/span> DfE\u2019s new \u00a315.4bn framework<\/span><\/a>.<\/span><\/p>\n

But in April, Bam withdrew from a project to build the \u00a3671m Royal Victoria children\u2019s hospital in Belfast, just weeks after it was named as one of the contractors.<\/span><\/p>\n

The firm was due to develop the hospital as part of its ongoing joint venture with Northern Ireland-based Graham Construction,<\/span> but said it took a \u201ccommercial decision\u201d<\/span><\/a> not to proceed with the scheme.<\/span><\/p>\n

Wilkinson said that there were two main reasons behind that decision: Bam decided to prioritise another children’s hospital job in Dublin, and the \u201ccommercial model [in the Belfast scheme] wasn’t right for us\u201d.<\/span><\/p>\n

Bam\u2019s UK civil engineering activities, primarily its Bam Nuttall business, returned mixed results. While turnover increased by 8 per cent to \u20ac1.78bn, adjusted EBITDA fell year on year by 10 per cent to \u20ac92.2m.<\/span><\/p>\n

Similarly, the group\u2019s Irish operations saw adjusted EBITDA fall by a fifth while revenue rose by 22 per cent compared with 2024.<\/span><\/p>\n

Wilkinson insisted that Bam Nuttall is still \u201cslightly outperforming\u201d its civils rivals, and said the firm’s lower EBITDA was partly attributable to the cost of moving to a new head office in Farnborough.<\/span><\/p>\n

The depreciation of the British pound against the euro had a \u20ac25m negative effect on Bam\u2019s UK operations to overall group earnings and a \u20ac337m impact on the overall order book at the end of 2025, Royal Bam said.<\/span><\/p>\n

This meant the UK and Ireland order book was 4 per cent lower than at 31 December 2024.<\/span><\/p>\n

Royal Bam groups 10 companies in its UK and Ireland division into four business segments: Bam Construction UK, the core UK operating business; civils firm Bam Nuttall; Irish contracting business Bam Contractors (Ireland); and Bam Ventures (comprising its facilities management, real estate development, geotechnical and plant activities).<\/span><\/p>\n

Looking ahead, Royal Bam said it expects the UK construction market to \u201cstrengthen\u201d amid a continued focus on energy security.<\/span><\/p>\n

\u201cThe government\u2019s 10-year infrastructure plan is ambitious, and defence investment is also set to increase,\u201d the group added in its results announcement.<\/span><\/p>\n

\u201cThe recently approved UK Planning and Infrastructure Bill has the potential to accelerate approvals for major projects. In London, commercial planning activity is rising, with growing emphasis on retrofit developments.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The UK construction arm of Netherlands-based Royal Bam has bounced back into the black with \u201ca solid increase\u201d in turnover and \u201cstrong\u201d project execution. Bam Construction UK generated adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of \u20ac31.1m (\u00a327.1m) in the year to 31 December 2025, according to Royal Bam\u2019s annual results, announced this …<\/p>\n","protected":false},"author":135716,"featured_media":517019,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[552,528],"tags":[],"class_list":["post-538543","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial","category-bam-construct"],"yoast_head":"\n\u2018Strong\u2019 execution helps Bam Construction UK back to profit | Construction News<\/title>\n<meta name=\"description\" content=\"The UK construction arm of Netherlands-based Royal Bam has bounced back into the black with \u201ca solid increase\u201d in turnover and \u201cstrong\u201d project execution.\" \/>\n<meta name=\"robots\" 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