Kier Group (KIE) H2 2025 Fixed Income earnings summary

Executive summary

• Record order book of £11 billion, providing strong visibility into future revenues and growth opportunities.

• Consistent delivery and performance over the past five years, with all key financial metrics trending positively.

• High confidence in medium- and long-term revenue forecasts, underpinned by government infrastructure commitments and framework positions.

Financial highlights

• Free cash flow for the year was £155 million, slightly below the prior year due to exceptional working capital inflows previously, but in line with targets.

• Final dividend increased to 5.2p, resulting in a 7.2p annual dividend, a 38% increase year-over-year.

• Achieved target of three times dividend cover.

• Average month-end net debt reduced from £582 million in FY21 to £49 million, supporting capital allocation flexibility.

Outlook and guidance

• 91% of FY26 and 70% of FY27 revenues are already covered by the current order book and framework positions.

• Government's £725 billion infrastructure pipeline and three-year spending commitment provide strong market visibility.

• Continued confidence in future revenue and profit growth, supported by robust order book and framework access.