Keller Group (KLR) H1 2025 earnings summary

Executive summary

• Delivered strong H1 2025 results ahead of expectations, with robust underlying business performance and margins at 7%, despite a strong prior year comparative and anticipated market normalization in North America.

• Maintained a record order book at £1.6bn, supporting confidence in meeting full-year 2025 expectations despite macroeconomic volatility and FX headwinds.

• Leadership transition underway: Michael Speakman stepped down due to ill health; James Wroath to become CEO from August 18, 2025.

• Completed £25m share buyback, with an additional £25m tranche planned for H2 2025.

• Interim dividend increased by 10% to 18.3p per share, with a 5% increase anticipated for FY 2025.

Financial highlights

• H1 2025 revenue of £1,457.7m, down 2% year-over-year but up 1% at constant currency; statutory profit of £66.9m, group margin at 7%.

• Underlying operating profit £102.6m, down 9% year-over-year (down 6% at constant currency); underlying diluted EPS 98.1p.

• Net debt at £61.5m, up £32m since Dec 2024 due to share buyback and working capital investment; leverage ratio at 0.2x.

• Free cash flow before interest and tax at £51.6m, representing 50% of underlying operating profit.

• Interim dividend of 18.3p declared, payable 12 September 2025.

Outlook and guidance

• Confident in meeting full-year 2025 expectations, underpinned by a strong order book and healthy tendering pipeline, despite significant FX headwinds and macro volatility.

• H2 expected to be stronger, with typical second-half cash generation bias and profit phasing.

• Full-year tax rate to remain at 23%; net cash position targeted by year-end, subject to M&A.