Serco Group (SRP) Q2 2026 TU earnings summary

Executive summary

• First-half 2026 revenue expected at approximately £2.5bn, up 3% year-over-year, with organic growth of 1% and strong performance in UK & Europe.

• Underlying operating profit for H1 projected at £155m, reflecting margin progression above 6% and productivity improvements.

• Full-year revenue guidance maintained at around £5bn, with organic growth of 3% and operating profit guidance of £300m, a 10% increase over 2025.

• Strong contract pipeline of £12.5bn, with over £2bn in new awards/extensions and significant order intake in Asia Pacific.

Financial highlights

• H1 revenue of £2.5bn represents a 3% increase compared to H1 2025; organic growth at 1%.

• Underlying operating profit for H1 expected at £155m, up 6% year-over-year; full-year margin expected at 6%, 40bps higher than 2025.

• Adjusted net debt at end of June expected to be £250m, with leverage below 1.0x; free cash flow for the year guided at £160m.

• Share buyback of £75m to conclude by end of July.

Outlook and guidance

• Full-year revenue guidance unchanged at £5bn, with organic growth of 3%.

• Underlying operating profit guidance maintained at £300m, with margin at the upper end of the 5-6% target range.

• Adjusted net debt expected to reduce to £165m by year-end, supported by strong free cash flow.

• Second-half margin expected to moderate due to revenue mix but still improve year-over-year.