Kier Group (KIE) H1 2025 earnings summary

Executive summary

• Achieved 5% revenue growth and 3% adjusted operating profit growth for HY25, maintaining a 3.4% margin and improving net cash to £57.9m from £17.0m.

• Record order book increased 2% to £11.0bn, providing high multi-year revenue visibility with 98% of FY25 revenue secured.

• Interim dividend increased by 20% to 2.00p per share and a £20m share buyback program launched in January 2025.

• Disciplined capital allocation with increased property investment and strong deleveraging supporting shareholder returns.

Financial highlights

• Revenue rose to £1,979m (up 5.1% year-over-year); adjusted operating profit reached £66.6m (up 3%).

• Adjusted profit before tax was £50.6m; profit after tax was £20.4m (up 5.9% year-over-year).

• Net cash at period end was £57.9m, up from £17.0m in the prior year; average month-end net debt reduced to £37.6m.

• Free cash outflow of £49.8m due to seasonal working capital and property investment.

• Adjusted EPS flat at 8.7p; dividend cover at c.3.5x.

Outlook and guidance

• 98% of FY25 revenue secured; strong order book and frameworks underpin future growth.

• Second half expected to be stronger, with property transactions weighted to H2 and trading in line with Board expectations.

• Confident in sustaining strong cash generation and benefiting from UK infrastructure spending.

• Long-term growth plan targets GDP+ revenue growth, adjusted operating margin >3.5%, c.90% cash conversion, and sustainable dividend policy (c.3x cover).