Kier Group (KIE) H2 2026 earnings summary

Executive summary

• Delivered strong FY 2026 results with revenue up 7.5% year-over-year and adjusted operating profit up 6.7%.

• Achieved record order book of GBP 11.9 billion, up 8.2% year-over-year, supported by leading positions on approximately GBP 200 billion of public and private sector frameworks.

• Simplified business model focused on core infrastructure and construction, with property business capital to be returned to the balance sheet.

• Enhanced leadership team and operational discipline, with key appointments in COO and GCD roles.

• Recognized for ESG leadership, employee engagement, and sector awards.

Financial highlights

• FY 2026 revenue reached GBP 4.4 billion, a 7.5% increase from prior year; adjusted operating profit was GBP 170 million, up 6.7%, with a margin of 3.9%.

• Adjusted EPS grew 8.8% to 23.5p, aided by share buybacks.

• Operating free cash flow was GBP 206 million; free cash flow GBP 165 million, up 6.2% year-over-year.

• Achieved average net cash position of GBP 11 million, a GBP 60 million improvement from FY 2025, with closing net cash at GBP 232 million.

• Final dividend of 5.2p per share, full year dividend up 8.3% to 7.8p, with 3x cover; GBP 25 million share buyback executed.

Outlook and guidance

• FY 2027 adjusted EPS expected at the top end of board expectations, supported by significant contract wins and pipeline growth.

• Targeting mid-single-digit annual revenue growth, 4%-4.5% AOP margin, and double-digit EPS CAGR over the medium term.

• Aiming for average net cash of over GBP 200 million by FY 2029.

• Ordinary dividend to grow in line with earnings, maintaining 3x cover.

• Strong momentum in early FY27 trading, with high visibility of secured revenue.