Keller Group (KLR) H1 2026 earnings summary

Executive summary

• Achieved record H1 2026 results with revenue up 11.1% year-over-year to £1,608m, driven by strong North America and APAC performance, especially in data centers and infrastructure projects.

• Underlying operating profit increased 17.1% to £120.2m, with margin up to 7.3% and EPS rising 22.4% to 120.1p, supported by share buybacks.

• Order book reached a record £1.9bn, up 20% year-over-year, underpinned by major multi-year infrastructure contracts.

• Interim dividend per share increased 57% to 28.7p, reflecting a new payout policy.

• Performance exceeded Board expectations, with strong momentum entering H2 and full-year guidance reaffirmed.

Financial highlights

• Revenue up 11.1% year-over-year to £1,608m; underlying operating profit up 17.1% to £120.2m; operating margin improved to 7.3%.

• EPS increased 22.4% to 120.1p; ROCE at 30.9% (+420bps YoY); net debt/EBITDA at 0.1x.

• Free cash flow before interest and tax was £43.0m, down from £51.6m year-over-year due to working capital increases.

• Interim dividend raised 57% to 28.7p, with earnings cover at 3.0x.

• Net finance costs reduced to £9.2m; effective tax rate stable at 23%.

Outlook and guidance

• Confident in achieving upgraded FY 2026 market expectations, with full-year performance expected in line with consensus (£3,337m revenue, £242m underlying operating profit).

• Strong momentum entering H2, with performance typically weighted to the second half.

• Order book at record £1.9bn, with multi-year projects providing revenue visibility.

• Well positioned for continued growth, supported by strong balance sheet and sector diversification.

• Focus remains on commercial discipline, operational execution, and capitalising on sector megatrends.