REG - Kier Group PLC - Trading Update

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RNS Number : 5842P  Kier Group PLC  20 January 2026

20 January 2026

 

Kier Group plc

 

Trading Update

Full year expectations unchanged and average month-end net cash milestone
achieved

 

 

Kier Group plc ("Kier" or "the Group"), a leading infrastructure services,
construction and property group, issues a trading update for the six months
ended 31 December 2025 ("the period" or "first half"). The Group will publish
its results for the period on 3 March 2026.

Trading

The Group has continued to trade well, with first half and estimated full year
performance remaining in line with the Board's expectations.

Order book

The order book as at 31 December 2025 of c.£11.6bn (31 December 2024:
£11.0bn) remains at record levels with 94% of FY26 Group revenue estimated to
be secured, providing a high degree of visibility.

Recent awards include:

·     Infrastructure Services:

o   Appointed to a place on the British Airways (BA) Tier 1 collaborative
framework tender, supporting BA's Better Buildings programme, initially at
Heathrow, with scope to extend across other airports.

o   Appointed to two Early Contractor Involvement (ECI) contracts, worth
£44m, by Southern Water under its £3.1bn AMP8 Strategic Delivery Partner
Framework.

o   Awarded a two-year extension on the Minor Civils Framework at Hinkley
Point C nuclear power station.

·     Construction:

o   Awarded two education projects worth a total of c.£112m.

o   Awarded the contract to deliver the Government Property Agency (GPA) Hub
in Darlington, worth £85.5m.

·   Property activity in the period:

 

o   Secured planning permission at Sharston Industrial Area, a four-acre
development in Manchester, to deliver 98,000 sq ft of business  space.

o   Achieved the practical completion of the 126,106 sq ft Logistics City
development in Milton Keynes.

 

Investment in sectors such as transport, education, healthcare, justice,
defence, water and nuclear features prominently in the UK Government's 10 Year
Infrastructure Strategy. For Kier, as a leading supplier across these sectors,
this investment, and particularly the considerable expenditure planned in
regulated industries such as Water, provides significant growth
opportunities.

Balance sheet

In the period, through the continued focus on operational delivery and cash
management, the Group achieved an average month-end cash position of c.£15m
(HY25: £(38)m net debt), in-line with the Board's expectations. At 31
December 2025, the Group is expected to report a period-end net cash position
substantially above the prior year comparative period (HY25: £58m).

 

 

Divisional change and recent appointments

In January, Kier announced the combination of its Transportation and Natural
Resources, Nuclear & Networks divisions into a single Infrastructure
division, pooling the Group's skills, capabilities and market leading
positions in the road, rail, aviation, water, energy and environment sectors.
The division will be led by Joe Incutti, previously Group Managing Director
("GMD") for Kier Transportation.

January also saw the arrival of Tom Hinton, previously interim CEO at
Wincanton, as CFO and Martin Staehr, previously a Director at Laing O'Rourke,
as GMD for Construction.

 

Stuart Togwell, Chief Executive of Kier, commented:

"We performed strongly in the first half of FY26, in line with our
expectations, taking good momentum into the second half of the year. In
particular, the achievement of an average net cash position for the period
represents a significant milestone and is testament to our culture of
operational delivery and focus on working capital management. As we start the
second half of the year, structured for further success, I am pleased to
welcome Tom and Martin, and look forward to working with them, and all of our
talented people, to drive the next phase of Kier's growth."

 

 

 

- ENDS -

 

 

For further information, please contact:

 Investor Relations                +44 (0)7933 388 746
 Kier Press Office                 +44 (0)1767 355 096
 Richard Mountain, FTI Consulting  +44 (0)203 727 1340

 

 

About Kier Group plc

 

Kier is a leading UK infrastructure services, construction and property
group. We provide specialist design and build capabilities and the knowledge,
skills and intellectual capital of our people to ensure we are able to project
manage and integrate all aspects of a project.

 

 

This announcement does not constitute an offer of securities by Kier Group plc
(the "Company"). Nothing in this announcement is intended to be, or intended
to be construed as, a profit forecast or a guide as to the performance,
financial or otherwise, of the Company or any of its subsidiaries (together,
the "Group") whether in the current or any future financial year. This
announcement may include statements that are, or may be deemed to be,
''forward-looking statements''. By their nature, forward-looking statements
involve risks and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future and may be beyond the
Company's or the Group's ability to control or predict. Forward-looking
statements are not guarantees of future performance. You are advised to read
the section headed ''Principal risks and uncertainties'' in the Company's
Annual Report and Accounts for the year ended 30 June 2025 for a further
discussion of the factors that could affect the Company's or the Group's
future performance and the industry in which it operates. Other than in
accordance with its legal or regulatory obligations, the Company does not
accept any obligation to update or revise publicly any forward-looking
statement, whether as a result of new information, future events or otherwise.

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