UK's Kier Group FY26 revenue rises on infrastructure growth
UK's Kier Group FY26 revenue rises on infrastructure growth
Overview
UK infrastructure and construction firm's FY26 revenue rose 7.5%, adjusted EPS up 8.8% yr/yr
Company achieved average net cash position for first time in over a decade
£25 mln share buyback announced in March 2026, over 30% complete at year-end
Outlook
Kier expects FY27 earnings at the top end of the Board’s prior expectations
Company updates medium-term targets: mid-single digit revenue growth, 4.0-4.5% margin, >£200m net cash by FY29
Kier will not invest in new Property developments from FY27, reallocating capital to core businesses
Result Drivers
INFRASTRUCTURE GROWTH - Co said strong revenue and profit growth in Infrastructure division was driven by increased project activity, especially in water, highways, and rail sectors
CONSTRUCTION MOMENTUM - Co attributed Construction division's revenue growth to ramp up of significant project works and continued contract selection discipline
ORDER BOOK EXPANSION - Co said record order book and recent contract awards provided strong forward visibility and underpinned future revenue growth
Company press release: ID:nRSO7129Ua
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Adjusted Operating Margin |
| 3.90% |
|
FY Basic EPS |
| GBP 0.14 |
|
FY Operating Profit |
| GBP 118.70 mln |
|
FY Pretax Profit |
| GBP 83.80 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "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 Kier Group PLC is GBp268.50, about 8.3% above its September 14 closing price of GBp248.00
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
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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.)