Morgan Sindall Group (MGNS) H1 2026 earnings summary

Executive summary

• Achieved record first half with adjusted profit before tax up 21% to £116.1m and revenue up 8% to £2,562m, marking the 11th consecutive record first half excluding the COVID year.

• Delivered two unscheduled profit upgrades and increased interim dividend by 10% to 55p per share.

• Diverse business mix and decentralised culture enabled resilience and 21% profit growth despite a weak housing market.

• Strong balance sheet with substantial net cash and increased medium-term targets for Fit Out and Construction divisions.

• High-quality secured order book at £12.2bn, with preferred bidder work increasing to £7.3bn, totaling £19.5bn.

Financial highlights

• Revenue increased by 8% to £2.6bn year-over-year; adjusted operating profit rose 21% to £111.5m.

• Operating margin improved to 4.4% (+50bps); PBTA margin at 4.5%.

• Earnings per share increased 22% to 186.1p; interim dividend up 10% to 55p.

• Average daily net cash at £423m (+£69m); period end net cash £418m (+£28m).

• Operating cash outflow of £10m due to ongoing investments in Partnerships; free cash flow outflow of £27.5m, improved from £31.5m outflow year-over-year.

Outlook and guidance

• Full-year performance expected to be in line with current expectations, supported by a strong order book and diversified operations.

• Medium-term targets raised for Fit Out (operating profit £100–130m, margin 3.75%–4.25%, revenue towards £1.5bn) and Construction (margin 3.5%–4.0%, revenue >£1.5bn).

• Partnership Housing targets operating margin of 8% and annual ROCE up to 30%, but profits for the full year anticipated to be slightly below prior year.

• Infrastructure profits expected slightly below prior year due to higher invested capital.

• Guidance for average daily net cash remains above £400m.