Keller Group (KLR) H2 2025 earnings summary

Executive summary

• Achieved record financial results for 2025, with revenue up 5.9% year-over-year to £3,087.3m and underlying operating profit up 6.5% to £218.2m, driven by operational improvements and sector agility despite mixed market conditions and FX headwinds.

• Underlying operating margin held steady at 7.1%, and diluted EPS rose 6% to 211.3p, supported by profitability and share buybacks.

• Dividend increased by 42% to 70.4p, with a 41.6% increase cited elsewhere, and a multi-year share buyback program was launched, with £50m completed and a further £100m planned.

• Performance was driven by strong results in EME and APAC, offsetting lower profitability in North America, with APAC showing notable growth in Austral and India.

• Achieved net cash position for the first time in 25 years, ending 2025 with £59.7m net cash.

Financial highlights

• Revenue grew 5.9% year-over-year on a constant currency basis to £3,087.3m, with all divisions increasing.

• Underlying operating profit rose 6.5% year-over-year at constant currency to £218.2m, with margins held at 7.1%.

• Underlying EPS increased 5.7% to 211.3p, and ROCE reached 30.7%, up 250bps.

• Free cash flow reached £175.9m in 2025, representing 108% of underlying operating profit.

• Net cash position of £59.7m at year-end, after £38.9m in share buybacks.

Outlook and guidance

• Entering 2026 with a high-quality order book of £1.5bn, robust tendering, and strong balance sheet.

• Confident in sustaining operational performance and margins, with growth supported by infrastructure, energy transition, and technology trends.

• Further £100m share buyback announced for 2026.

• Focus on targeting faster-growing customer segments and wider product deployment.

• Expect continued outperformance in North America and solid results in APAC; EME poised for further growth as markets recover.