Mitie Group (MTO) H1 25/26 earnings summary

Executive summary

• Achieved double-digit revenue growth for the fifth consecutive six-month period, with H1 FY26 revenue up 10.4% to £2,677m year-over-year, driven by 6.4% organic growth and 4.0% from acquisitions, notably Marlowe.

• Operating profit before other items rose 7.6% to £108.8m, with EPS up 5.6% to 5.7p per share, and interim dividend increased by 7.7% to 1.4p; statutory operating profit fell 4.4% to £60.6m due to acquisition-related costs.

• Order book grew 31% year-over-year to £16.5bn TCV, and pipeline expanded to £33bn TCV, reflecting record contract wins and renewals.

• Integration of Marlowe progressing well, positioning the group as a leader in UK Facilities Compliance and supporting expansion into water services.

• AI strategy and digital transformation initiatives underpin margin expansion and operational efficiencies.

Financial highlights

• Organic revenue growth of 6.4%, with acquisitions contributing an additional 4.0%.

• Free cash inflow of £51.9m; average daily net debt at £332m, closing net debt at £471m.

• Margins maintained at just over 4% despite inflation and National Insurance headwinds.

• ROIC temporarily reduced to 16.3% due to Marlowe acquisition, expected to recover.

• TSR since capital markets event at 68%, outperforming FTSE 250 average.

Outlook and guidance

• FY26 EBIT guidance confirmed at £260m; double-digit revenue growth expected to continue in H2.

• Margins anticipated to improve in H2 as project revenues and margin initiatives ramp up.

• Free cash flow for FY26 expected to exceed £120m; ROIC to return toward 20%.

• AI efficiencies and Marlowe integration to support 5% margin aspiration and growth beyond FY27.

• Management confident in exceeding FY27 revenue target of £5.6bn.