Keller Group (KLR) H2 2024 earnings summary

Executive summary

• Delivered another outstanding year in 2024, outperforming all key financial and operational KPIs, with results ahead of expectations and improved performance across all key metrics year-over-year.

• Revenue grew 4% year-over-year to £2,986.7m, with underlying operating profit up 22% to £212.6m and margin rising to 7.1%.

• Diluted EPS increased 30% to 199.9p, driven by higher profitability, lower financing costs, and a reduced effective tax rate.

• Free cash flow rose 87% to £192.6m, and net debt was reduced by 80% to £29.5m, with leverage at 0.1x.

• Record year-end order book of £1.6bn, a 9% increase, and a 10% dividend increase; intention to launch a multi-year share buyback starting with £25m in Q1 2025.

Financial highlights

• Revenue: £2,986.7m (+4% year-over-year); underlying operating profit: £212.6m (+22%).

• Statutory profit at £142.7m, a 59% increase year-over-year.

• Free cash flow: £192.6m (+87%); net debt: £29.5m (down 80%).

• Underlying EPS: 199.9p (+30%); effective tax rate reduced to 23%.

• Final dividend proposed at 33.1p, total dividend for the year up 10% to 49.7p.

Outlook and guidance

• Record order book and operational improvements underpin expectations for further progress in 2025.

• North America expected to normalize after a strong 2024; Europe and Middle East anticipated to recover with improved project execution.

• APAC expected to maintain strong performance, though Australian infrastructure may face pricing pressure.

• Tax rate guidance for 2025 remains at 23%, subject to U.S. policy changes.

• Anticipate net cash position in 2025, subject to M&A and share buyback execution.