Speedy Hire (SDY) H2 2026 earnings summary

Executive summary

• Secured a transformational commercial agreement with ProService, expected to deliver GBP 50–55 million in revenue and significant earnings accretion in its first full year post-integration.

• Velocity strategy progressed on time and on budget, entering the Deliver phase focused on market share gains, operational efficiency, and customer experience.

• Achieved resilient performance in a subdued UK construction market, with strong national customer performance and a shift toward multi-year, large-scale contracts.

• Multi-year contracts secured with ProService, Amey, and Thames Water, totaling GBP 90 million annualized.

• Services and customer solutions businesses, including Lloyds British, are performing well and growing.

Financial highlights

• Total revenue GBP 416.1 million, flat year-over-year, demonstrating resilience in a tough market.

• EBITDA GBP 85.4 million (down from GBP 97.1 million), EBITDA margin 20.5% (vs 23.3%), EBITA GBP 11.9 million (down from GBP 26.8 million).

• Services revenue (excluding fuel) grew to GBP 134.1 million (+4.9%), with Lloyds British revenue up 4% after restructuring.

• Fuel revenue declined 47.5% due to a shift to third-party fulfillment, but margin impact was minimal.

• Net debt increased to GBP 159 million (from GBP 113 million) due to the ProService deal, leverage at 3.3x EBITDA.

• Free cash flow GBP 3.0 million (up from GBP 0.8 million); strong operating cash flow conversion at 103% of EBITDA.

Outlook and guidance

• FY 2027 has started positively, with total revenue up 2% and EBITDA up 13% in the first two months.

• Customer-led project delays are resolving, expected to contribute meaningfully in the first half of FY 2027.

• Market guidance and outlook for FY 2027 reconfirmed, with expectations of further cash generation from major contracts and revenue of GBP 475.3 million, adjusted EBITDA GBP 117.3 million.

• Meaningful deleveraging expected over the next two years, supported by EBITDA growth and reduced non-underlying items.

• Dividend maintained at GBP 0.01, with potential for gradual increases as earnings from ProService flow through.