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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.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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