Kier Group (KIE) H2 2025 earnings summary

Executive summary

• Record order book of £11 billion, securing 91% of FY26 and 70% of FY27 targeted revenue, providing strong multi-year visibility.

• Revenue grew 3% year-over-year, with adjusted operating profit up 6% to £159 million and margin at 3.9%, progressing toward the 4%-4.5% long-term target.

• Profit before tax increased 15% to £78.1 million, and net cash rose 22% to £204 million at June 2025.

• Shareholder returns increased with a 38% higher full-year dividend and a £20 million share buyback program (50% complete).

• Leadership transition announced, with Stuart Togwell set to become CEO in November 2025 after Andrew Davies' final results presentation.

Financial highlights

• Revenue reached £4,087.8 million, up 3% from FY24.

• Adjusted operating profit rose to £159.1 million (margin 3.9%), progressing toward the 4%-4.5% target.

• Adjusted EBITDA grew 10% to £228 million; free cash flow was £155 million, with a 125% conversion rate.

• Net cash at year-end was £204 million, up from £167 million; average month-end net debt improved to £49 million from £160 million.

• Adjusted basic EPS grew 4.9% to 21.6p; statutory EPS up 8.5% to 12.8p.

Outlook and guidance

• FY26 has started ahead of Board expectations.

• Continued focus on above-GDP revenue growth, margin expansion to 4%-4.5%, and strong cash generation.

• Property business expected to deliver 15% RoCE by 2027, with capital employed targeted at £225 million.

• Dividend policy targets circa 3x earnings cover through the cycle.

• Revenue growth underpinned by £156 billion of framework positions and strong government infrastructure commitments.