Kier Group (KIE) H1 2026 earnings summary

Executive summary

• Delivered strong first half FY 2026 with revenue up 2.6% and adjusted operating profit up 6.6% year-over-year.

• Achieved average net cash position for the first time in 13 years, with period-end net cash at £103m.

• Record order book of £11.6bn, securing significant revenue visibility into FY26 and FY27.

• Announced a 30% increase in interim dividend to 2.6p per share and a new £25m share buyback program.

• Strategic restructuring and leadership changes implemented, including new executive appointments and digital initiatives.

Financial highlights

• Group revenue for HY 2026 was £2,029m, up 2.6% year-over-year.

• Adjusted operating profit rose 6.6% to £71m, with a margin of 3.5%, up 10bps from HY 2025.

• Adjusted profit before tax up 7.7% to £54.5m; adjusted basic EPS up 9.2% to 9.5p.

• Net cash at period end was £103m, up from £58m at December 2024; average net cash of £16.8m achieved.

• Free cash outflow improved to £42m, with supplier payment days reduced to 32.

Outlook and guidance

• Trading in line with board expectations; full-year expectations remain unchanged.

• Momentum from HY 2026 continues into H2, with strong order book and pipeline supporting future growth.

• Medium-term targets: adjusted operating margin 4.0–4.5%, c.90% cash conversion, sustainable dividend cover of 3x earnings.