UK's Keller Group H1 revenue rises 11% on North America demand
UK's Keller Group H1 revenue rises 11% on North America demand
Overview
UK geotechnical contractor's H1 revenue rose 11% yr/yr on strong North America demand
Adjusted EPS for H1 increased 22%, reflecting higher profits and share buybacks
Company launched £100 mln share buyback, with £35 mln completed since March
Outlook
Keller expects full-year 2026 performance in line with recently upgraded market expectations
Company sees record order book of £1.9bln supporting revenue in H2 and beyond
Current company compiled consensus for 2026 is revenue of £3,337mln and underlying operating profit of £242mln
Result Drivers
NORTH AMERICA GROWTH - Record revenue and profit growth in North America driven by high activity in infrastructure and data centre markets, and strong project execution
ORDER BOOK STRENGTH - Record order book of £1.9 bln, supported by major multi-year infrastructure contracts, underpins future revenue
MARGIN IMPROVEMENT IN EME - Improved margins and profit in Europe and Middle East, mainly from better project execution and profit growth in the Middle East
Company press release: ID:nRSD0851Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 1.61 bln |
|
H1 Adjusted Operating Profit |
| GBP 117.9 mln |
|
H1 Operating Profit |
| GBP 112.5 mln |
|
H1 Pretax Profit |
| GBP 103.3 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for Keller Group PLC is GBp3,100.00, about 1.6% above its August 3 closing price of GBp3,050.00
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
Aug 3 - CNH raises annual profit forecast on improving construction equipment demand
Aug 4 - Australia's Maas Group lifts earnings outlook after $600 million Firmus order
Aug 3 - UK engineering group Senior's H1 adjusted pretax profit rises 38%
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)