Mitie Group (MTO) H2 25/26 earnings summary

Executive summary

• Achieved strong double-digit revenue and operating profit growth for the third consecutive year, with organic growth averaging 7% since 2023 and strong momentum in Business Services and Technical Services divisions.

• Record order book of £16.3bn and bidding pipeline of £31.7bn, providing high visibility and confidence in future growth.

• Strategic plan for FY 2025–2027 is on track, with foundations laid for continued value creation into FY 2028 and beyond.

• Marlowe acquisition is exceeding expectations, contributing to revenue, profit, and synergy realization.

• Free cash flow generation of £162m, supporting increased capital deployment and shareholder returns.

Financial highlights

• FY 2026 revenue up 10.5% to £5.6bn, with organic growth of 5.3%.

• Operating profit rose 12.8% to £264.1m; margin improved to 4.7%.

• EPS increased 7.1% to £0.136, supported by profit growth and share buybacks; total dividend up 4.7% to £0.045 per share.

• Free cash inflow of £162m, exceeding FY 2027 target; average daily net debt increased to £440m due to capital deployment.

• ROIC at 18.1%, temporarily reduced due to the Marlowe acquisition.

Outlook and guidance

• Confident in achieving FY 2027 targets, with continued revenue and margin growth expected.

• Finance costs to rise with higher leverage; tax rate to remain around 25%.

• ROIC expected to recover toward 20% as Marlowe integration matures.

• FY 2027 inflation impact expected at £10m–£12m, mostly passed through to customers.

• Share buybacks to total £100m in FY 2027.