Serco Group
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Serco Group (SRP) investor relations material

Serco Group H2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H2 2025 earnings summary5 Mar, 2026

Executive summary

  • Delivered strong full-year 2025 results with revenue of GBP 4.9 billion, underlying operating profit of GBP 272 million, and robust operational delivery across defense, justice and immigration, and citizen services.

  • Strategic focus sharpened on high-growth sectors and geographies, with defense now accounting for 40% of total revenue.

  • Maintained high contract retention rates and strong new business win rates, supporting a record pipeline of GBP 12.1 billion.

  • Leadership transition announced, with Mark Reid succeeding Nigel Crossley as Group CFO.

Financial highlights

  • Revenue reached GBP 4.9 billion, up 3% at constant currency year-over-year; underlying operating profit was GBP 272 million, with a margin of 5.6%.

  • Underlying EPS (diluted) rose 2% to 16.93p; dividend per share increased 8% to 4.50p.

  • Cash conversion remained exceptional at 112%, with free cash flow of GBP 219 million.

  • Adjusted net debt increased to GBP 206 million, reflecting the MT&S acquisition and capital returns; net debt to EBITDA at 0.7x.

  • Order intake was GBP 5.5 billion, with a book-to-bill ratio of 114%.

Outlook and guidance

  • 2026 revenue expected around GBP 5 billion, with 3% organic growth.

  • Underlying operating profit guidance for 2026 is GBP 300 million, over 10% higher year-over-year, with margin expected at 6%.

  • Free cash flow forecast at GBP 160 million; adjusted net debt to finish 2026 at GBP 165 million.

  • Full-year dividend recommended at 4.5p per share, up 8%.

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Q2 2026 TU25 Jun, 2026
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Frequently asked questions

Serco Group plc is a British company that delivers public services. The company mainly derives its income as a contractor for the provision of government services, most prominently in the sectors of health, transport, justice, immigration, space, defence and citizens services. Serco provides its services across four regions: UK & Europe, North America, Asia Pacific and Middle East. The company is headquartered in Hook, Hampshire, England, and was founded in 1929.

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