UK's Mitie Group FY adjusted EBIT beats, revenue rises on acquisition boost
UK's Mitie Group FY adjusted EBIT beats, revenue rises on acquisition boost
Overview
UK facilities management provider's FY26 revenue rose 10.5% but slightly missed analyst expectations
Adjusted EBIT for FY26 grew 13%, beating analyst estimates
Company plans £100 mln share buybacks in FY27, including £40 mln from current programme
Outlook
Mitie targets operating margin of at least 5% by FY27
Company expects annual free cash flow of £150 mln in FY27
Mitie expects margin progression in FY27, supported by higher-margin work and AI investments
Result Drivers
ORGANIC AND INORGANIC GROWTH - Revenue growth was driven by new contract wins, scope increases, pricing, project upsells, and acquisitions, including Marlowe
MARLOWE ACQUISITION - Marlowe contributed to 115% growth in Facilities Compliance revenue and delivered £7m of initial cost synergies
MARGIN ENHANCEMENT INITIATIVES - £25m of cost savings from ongoing margin enhancement programmes, including technology and AI to streamline workflows, offset material cost headwinds
Company press release: ID:nRSD9101Ga
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Slight Miss* | GBP 5.62 bln | GBP 5.65 bln (10 Analysts) |
FY Adjusted EBIT | Beat | GBP 264.1 mln | GBP 254.88 mln (10 Analysts) |
FY Adjusted EBIT Margin |
| 4.7% |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for Mitie Group PLC is GBp202.50, about 16.4% above its June 3 closing price of GBp173.90
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 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.)