Heathrow Terminal Five builder, Laing O'Rourke, reports a substantial profit increase.
Laing O'Rourke Posts Strong Financial Performance and Secures Major Projects
In a significant turn of events, construction giant Laing O'Rourke has demonstrated financial resilience during a period of international headwinds and disruption. The company, known for its work on prestigious projects such as One Hyde Park in London and Clarges Estate, has reported a pre-tax profit of £41.5m for the financial year ending 31 March, 2025. This profit is more than double the £18.1m reported in the previous year.
Despite a slight decrease in group revenue from £3.98bn to £3.95bn in the latest financial year, Laing O'Rourke's European hub, which includes its UK operations, showed a significant increase in gross profit. The gross profit of the European hub increased from £134.1m to £177m in the same period. This increase in profitability is a testament to the company's strategic focus on de-risking its portfolio, as mentioned by its chief executive, Cathal O'Rourke.
The improved financial performance comes amidst a challenging backdrop. Laing O'Rourke lost £288m in the year before the latest financial year. However, the company's robust response to inflationary pressures in the UK, particularly evident in its Australian business, has played a crucial role in its turnaround.
Laing O'Rourke's chief financial officer, Paul Teasdale, stated that the company has delivered strong growth and cash generation. This is evident in the company's cash position, which improved to £513.1m, resulting in a net cash position of £284.7m after debt. This solid cash foundation gives the business a solid foundation for future sustainable growth.
In terms of ongoing projects, Laing O'Rourke is currently working on Hinkley Point C and has signed up to help deliver Sizewell C. Regarding Sizewell C, Laing O'Rourke has welcomed the UK Government's commitment to the project and, along with partners Balfour Beatty and Bouygues, is involved in delivering Hinkley Point C. This involvement provides valuable experience and proof-of-concept that supports their work on Sizewell C.
Laing O'Rourke is also involved in several other major projects. These include building two new disease prevention science hubs as part of the UK National Biosecurity Centre at Weybridge under contracts with DEFRA, valued at over £900 million. Pre-construction started in summer 2025, with main works running from 2027 to the 2030s. The company is also delivering network upgrade works at the Margam substation in Port Talbot, Wales, for National Grid and heritage-related works on the Sydney Central Station Metro project in Australia, a $955 million contract with Sydney Metro and Transport for NSW.
With a record order book of £11.9 billion as of March 2025, Laing O'Rourke is well-positioned for future growth. Cathal O'Rourke, the company's chief executive, stated that the company is leading the way on modern methods of construction and digital engineering. These methods enable Laing O'Rourke to deliver projects with greater precision and efficiency, improving safety on site. The company continues to focus on innovation, advocating for a new paradigm in the construction industry that is safer, faster, and achieves better outcomes.
- Laing O'Rourke's robust financial performance in the core European market, evidenced by an increased gross profit of £177m, demonstrates a strategic focus on business growth within the industry.
- With arecord order book of £11.9 billion and major projects in various sectors, including Hinkley Point C, Sizewell C, and disease prevention science hubs in the UK, finance plays a crucial role in Laing O'Rourke's ability to secure and deliver significant business projects.
