XPS Pensions Group (XPS) H1 2026 earnings summary

Executive summary

• Revenue grew 13% year-over-year to £128.5m, with 8% organic growth and the remainder from the Polaris acquisition, reflecting strong client demand and expansion into insurance consulting.

• Adjusted EBITDA increased 8% and adjusted EPS rose 9% year-over-year, despite strong prior-year comparators and one-off McCloud Remedy project revenues.

• The business continues to benefit from high demand across all services, driven by significant changes in the pensions market and regulatory environment.

• Major new client wins include the Metropolitan Police and West Midlands Police, expanding the public sector client base.

• Integration of Polaris has opened new opportunities in insurance consulting and enhanced cross-selling, with a strong employee-centric culture and multiple industry awards.

Financial highlights

• Group revenue reached £128.5m, up 13% year-over-year, with organic revenue growth at 8%.

• Adjusted EBITDA was £33.4m (margin 26.0%), down from 27.2% due to one-offs, but normalized margin improved to 26.3%.

• Adjusted diluted EPS increased 9% to 9.7p; interim dividend up 11% to 4.1p per share.

• Adjusted operating cash inflow of £22.8m, with a 68% conversion rate.

• Net debt at £62.2m, with leverage at 0.88x and £47m undrawn from a £120m facility.

Outlook and guidance

• Full-year expectations remain on track, with further margin improvements anticipated over the medium term.

• Strong pipeline of new business opportunities in both public and private sectors, supported by regulatory changes.

• Continued investment in technology, people, and propositions to differentiate and support growth.

• Anticipated continued high demand for project work and administration services.