Mitie Group (MTO) Q1 2027 TU earnings summary

Executive summary

• Achieved 10% year-over-year revenue growth in Q1 FY27 to £1,406m, with 4% organic growth and 6% from acquisitions, notably Marlowe.

• Secured £1.6bn in contract wins, extensions, and renewals, up 33% from Q1 FY26, supporting future revenue visibility.

• Maintained strong order book and record £32.5bn bidding pipeline, with over 70% of opportunities to be awarded in the next 18 months.

• Integration of Marlowe progressing rapidly, driving cross-sell opportunities and operational synergies.

• Strategic plan for FY25-FY27 on track, with foundations laid for growth beyond FY28.

Financial highlights

• Q1 FY27 revenue rose to £1,406m from £1,282m in Q1 FY26, outpacing UK FM market growth of 2-3%.

• Organic revenue growth of 4% after absorbing a 2% impact from prior year contract losses; M&A contributed 6%.

• Net debt increased to £477m at 30 June 2026, up £27m from March, reflecting seasonal working capital outflow and capital deployments.

• Q1 free cash outflow reduced to £13m, compared to £21m in Q1 FY26 and £56m in Q1 FY25.

• BBB investment grade credit rating reaffirmed.

Outlook and guidance

• Confident in delivering FY25-FY27 Strategic Plan, with momentum expected to grow as new wins mobilize.

• Focus on margin expansion through higher-margin transformation projects and AI-driven operational improvements.

• Targeting sustainable annual free cash flow of £150m in FY27.