Morgan Sindall Group (MGNS) H2 2025 earnings summary

Executive summary

• Achieved record profits for the tenth year in the last eleven, driven by organic growth, with strong growth in PBTA and dividends over a decade.

• Secured order book and preferred bidder work reached GBP 19.1 billion, up 17%, with total line of sight up to GBP 30 billion including frameworks and future phases.

• Revenues rose 10% to over GBP 5 billion, operating profit up 39%, and adjusted EPS up 33% year-over-year.

• Net cash closed at GBP 531 million, up GBP 39 million, supporting future workload and organic growth.

• Medium-term targets raised for Infrastructure and Mixed Use Partnerships; Fit Out profits expected to significantly exceed medium-term targets.

Financial highlights

• Operating margin reached 4.5%, up 90 basis points year-over-year.

• Adjusted PBTA margin improved to 4.6%.

• Profit cash conversion rate at 87%, up 4 points from last year.

• Order book increased 5% to GBP 12 billion, with future work up 17% to GBP 19.1 billion.

• Earnings per share increased 33% to 370p; total dividend up 20% to 158p.

Outlook and guidance

• Expecting average cash in excess of GBP 400 million for 2026 to support partnership business opportunities.

• Partnership Housing targets solid profit growth and stable ROCE, dependent on housing market recovery.

• Mixed Use Partnerships to see ramp-up in projects but only modest profit and low ROCE in 2026.

• Fit Out profits projected to remain significantly ahead of medium-term targets for 2026, but turnover and margin expected to decline from record highs.

• Construction and Infrastructure margins expected in the middle of target ranges, with revenues toward GBP 1.3 billion and GBP 1 billion, respectively.