Executive News
Balfour Beatty Picks AtkinsRéalis Exec To Succeed Leo Quinn as CEO
Philip Hoare, set to take over as UK contractor's leader of ten years steps down, aimed to fix ‘broken’ industry models as COO of AtkinsRéalis.
AtkinsRéalis Chief Operating Officer Philip Hoare will take over as CEO of London-based contracting giant Balfour Beatty PLC
Image: Balfour Beatty plc
AtkinsRéalis Chief Operating Officer Philip Hoare will take over as CEO of the London-based contracting giant Balfour Beatty PLC on the heels of the firm’s rebound from an over $60 million profit hit to its revenue last year.
The company said CEO Leo Quinn will advise the transition before exiting in September after 10 years at the firm and credited with a turnaround in its bottom line since his arrival.
The mid-March announcement appeared to temporarily spook the market, sending Balfour Beatty’s shares down 5.5% on the London Stock Exchange, reported Reuters. But Balfour Beatty Chair Charles Allen assured that Hoare was the right leader at the right time after an “extensive international search.”
Allen said Hoare’s depth of industry knowledge and his experience in “delivering a profitable growth strategy across multiple geographies make him the ideal person to drive forward [company] success in our chosen markets.”
Hoare said he joins Balfour Beatty, as the “cornerstone of the construction and infrastructure industry with an exciting future.” Quinn pointed to the company’s 2024 full-year financial results as proof it is making “further strong progress,” with revenue of nearly $13 billion and pre-tax profit of $373 million, with the former up 4% from 2023 and the latter a 12% increase from the previous year.
But the firm reported a $64-million charge related toU.K. building safety requirements and one for $67 million linked to a transportation project completed with joint venture partner Fluor in 2012. The North Texas Tollway Authority alleged breaches of contract and negligence in a 2022 claim, recently winning $112 million in damages.
Balfour Beatty: 'Highly Engaged'
Yet Quinn’s tenure was mostly punctuated by growth, taking the company “from average net debt of $481 million in 2014 to $953 million average net cash in 2024,” said Allen. Quinn said Balfour Beatty “is well positioned to continue its disciplined performance in the medium term, with strong order book visibility, attractive opportunities in our growth markets of UK energy, transport and defense, and US buildings, and ... highly engaged workforce positioning the [firm] for ongoing success.”
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Hoare, who has cultivated a 30-year in various roles at the Montreal-based design and construction firm, could take a more tech-focused approach.
In a 2019 interview with the UK-based industry publication Building while at AtkinsRéalis, Hoare encouraged digital collaboration and technology investment as key to mending the construction sector’s “broken” procurement models.
“Really thinking about how we can work together digitally before we hit the ground, I think is key, and we are starting to see some great examples of that around the country,” he said at the time. “The investment has to be in the planning and development phase.”
AtkinsRéalis is considering external and internal candidates to replace Hoare in “ensuring sustained success,” said a spokesperson. “Our goal is to find a leader who can continue to drive performance, ensuring a seamless transition.”
Balfour Beatty US ranked at No. 32 on ENR’s 2024 Top 400 contractors list.
AtkinsRéalis ranked at No. 9 on ENR’s 2024 Top 150 Global Design Firms list.
