Mears Group (MER) H1 2026 earnings summary

Executive summary

• Achieved strong progress against financial and strategic objectives for H1 2026, with full-year guidance confirmed.

• Maintained high contract retention and secured significant new contracts, driving order book to a record £4.2bn.

• Completed integration of Pennington Choices, enhancing compliance capabilities.

• Divested non-core Facilities Management business for £18m, simplifying operations.

Financial highlights

• Group revenue (excluding divested FM) rose 2% to £555.6m year-over-year; Maintenance-led revenue up 7%, Management-led down 3%.

• Adjusted profit before tax down 10% to £28.9m; statutory profit before tax up 18% to £38.0m due to profit on disposal.

• Adjusted diluted EPS fell 9% to 25.26p; statutory diluted EPS up 30% to 36.01p.

• Interim dividend increased 11% to 6.20p per share.

• EBITDA to operating cash conversion at 92%; average daily net cash £29.7m, down from £67.7m.

Outlook and guidance

• Full-year FY26 guidance maintained: revenue ~£1,038m, adjusted PBT ~£50.7m.

• Maintenance-led revenue growth expected at 8-9% for FY26; Management-led revenues to decline as AASC normalises.

• Adjusted operating margin guided at 5.0-5.2% (pre-IFRS 16) for FY26, with medium-term target of 5-6%.

• Strong pipeline and low contract renewal risk support medium-term growth.