Construction factsheet 2025
Published 14 March 2025
© Crown copyright 2025
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Under the Defence Reform Act 2014, the SSRO must provide the Secretary of State with its assessment of the appropriate rates used to determine the contract profit rate for pricing qualifying defence contracts and qualifying sub-contracts. Part of the methodology is the categorisation of comparator companies into four activity types.
- Develop, Make and Support[1]
- Ancillary Services
- Construction
- Information Technology Services
The results of these groups are separately analysed and this factsheet describes the Construction group results.
For further information on the methodology used to calculate these rates please see the .
[1] The ‘Develop, Make and Support� activity type replaces the previous activity types of ‘Develop and Make� and ‘Provide and Maintain�. Further information can be found in the published Q&A document.
Construction
Companies undertaking comparable activities considered as ‘Construction� are expected to deliver services in relation to the construction of buildings or other structures at fixed locations. Companies could provide such services either on a contract basis with designs and specifications received or using their own designs. Comparable companies may be responsible for the management of the construction project, and are likely to bear contract risk, procurement risk, staff risk and some quality control risk in respect of these activities. They are not expected to bear any significant property price risk in respect of these activities.
Profit on cost of production
| 2021/22 | 2022/23 | 2023/24 | 2024/25 | 2025/26 | |
|---|---|---|---|---|---|
| Underlying rate (unadjusted for capital servicing) | 3.18% | 4.03% | 4.54% | 3.68% | 3.67% |
| Capital servicing adjustment | -0.17% | -0.29% | -0.30% | -0.18% | -0.36% |
| Underlying rate | 3.01% | 3.74% | 4.24% | 3.50% | 3.31% |
| Rolling average[2] | 3.19% | 3.33% | 3.44% | 3.58% | 3.68% |
Note: The capital servicing adjustment accounts, at an aggregate level, for different levels of capital employed across the companies in the index and so sets a baseline upon which step 4 of the contract profit rate applies.
[2] A four-year average was used for 2022/23; a three-year average for pre-2022/23 and a three-year average (excluding 2022/23 underlying rate) for 2023/24 onwards. The pre-2021/22 underlying rates used for the three-year average were: 2019/2020: 3.50% and 2020/21: 3.07%.
Data sources
For further information on the data selection approach please see section 7 of the . A company update search of the was carried out on 1 November 2024 on data update number 354001 using software version 354. The financial data for the calculation was extracted from Orbis at the same time.
Median capital servicing adjusted return on cost of production
Proportion of Companies by country
Proportion of companies with defence keyword
Supplementary statistics
| Number of companies | 77 |
| of which profit making | 68 |
| Aggregate turnover (£billions) | 210 |
| Total capital employed (CE) (£billions) | 7 |
| Average company CP:CE ratio | 29.57 |
Source: Orbis (Cash figures shown in rounded GBP Billions)
Names of companies in the index
| 3B Construction LTD | Ìý |
| ADF Group INC | Ìý |
| Aecon Group INC | Ìý |
| AF Gruppen ASA | Ìý |
| Balfour Beatty PLC | Ìý |
| Bermar Building Company Limited | Ìý |
| Billington Holdings PLC | Ìý |
| Bird Construction Inc. | Ìý |
| BouyguesÌý (J) | Ìý |
| Bowmer and Kirkland Limited | Ìý |
| Bravida Holding AB | Ìý |
| Bridgetown Holdings Limited | Ìý |
| Byggpartner I | Ìý |
| Dalarna Holding AB * | Ìý |
| Chrysalis * | Ìý |
| Cobelba - Sociedade de Construcao Civil, S.A. | Ìý |
| Conlon Holdings Limited | Ìý |
| Consti OYJ | Ìý |
| Dobloug Holding AS | Ìý |
| Ecosoer Holding AS | Ìý |
| Edimarante - Sociedade de Construcoes, S.A. | Ìý |
| Elektro AS | Ìý |
| Emcor Group INC | Ìý |
| EW Beard (Holdings) Limited | Ìý |
| Feltham Group Limited | Ìý |
| Fordy Thompson (Holdings) Limited | Ìý |
| Foundation Piling (Holdings) Limited | Ìý |
| Galliford TRY Holdings PLC | Ìý |
| Groupe 1000 | Ìý |
| Grupo Empresarial SAN Jose S.A. | Ìý |
| Haandverkskompaniet AS | Ìý |
| Haley Securities Limited | Ìý |
| Hardwicke Investments Limited * | Ìý |
| Harper Group Management Limited | Ìý |
| Highgrove Group PLC * | Ìý |
| Implenia AG | Ìý |
| John Weaver (Holdings) Limited | Ìý |
| K 21 Entreprenad AB | Ìý |
| Kier Group PLC | Ìý |
| Lareco Infra | Ìý |
| LES Macons Parisiens | Ìý |
| Lindum Group Limited | Ìý |
| M R Stephenson Limited | Ìý |
| M.P.B. Structures LTD | Ìý |
| Mace Finance Limited | Ìý |
| Martifer Sgps S.A. | Ìý |
| Mitchellson Formwork & Civil Engineering Limited * | Ìý |
| Morgan Sindall Group PLC | Ìý |
| NG Bailey Group LimitedÌý (J) | Ìý |
| Northern Bear PLC | Ìý |
| Nouveaux Batisseurs Associes | Ìý |
| Ohob Holdings Limited | Ìý |
| Oliver Connell and SON Limited | Ìý |
| Peab AB | Ìý |
| Porr AG | Ìý |
| Putkiwuorio Oy | Ìý |
| Rakennusliike J. Malm Oy | Ìý |
| Rakennuspetaja Oy | Ìý |
| Renelec Group Limited | Ìý |
| Royal BAM Group NV | Ìý |
| Simpson (York) Holdings Limited | Ìý |
| Skanska AB | Ìý |
| Sorgem Societe D Economie Mixte du VAL D Orge * | Ìý |
| stahl + verbundbau gesellschaft fuer industrielles bauen m.b.H. | Ìý |
| Strabag SE | Ìý |
| Subsea 7 SA * | Ìý |
| Tclarke PLC | Ìý |
| TOR Entreprenoer AS | Ìý |
| Tutor Perini Corporation * | Ìý |
| VAN Huele * | Ìý |
| Varden Gruppen AS | Ìý |
| Veidekke ASA | Ìý |
| Vinci | Ìý |
| Wates Group Limited | Ìý |
| Westcliffe Holdings Limited | Ìý |
| William Hare Group Limited | Ìý |
| Winvic Group Limited | Ìý |
| WYN Construction Limited | Ìý |
�*� Indicates that the company is a loss-maker in the year.
(J) Indicates a company which was not in the activity group last year but has been added this year.