Kier Group H1 Earnings Call Highlights

Kier Group (LON:KIE) reported a “strong archetypal half” successful its FY2026 results, citing maturation successful gross and profit, a grounds bid book, and a milestone betterment successful currency procreation that absorption said it had not achieved successful 13 years.

Chief Executive Stuart Togwell, delivering his archetypal half-year presumption successful the role, said the group’s bid publication roseate 5% during the play to a grounds £11.6 billion, providing multi-year visibility. Kier said it has secured 94% of expected FY2026 gross and 78% of expected FY2027 gross done its bid book. Chief Financial Officer Tom (who joined successful January) added that the radical has a £35 billion pipeline disposable for this twelvemonth and next, with model positions supporting “at slightest 5 years” of gross visibility.

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CFO Tom said first-half gross accrued 2.6% to £2,029 million, portion adjusted operating nett roseate 6.6% to £71 million. The adjusted operating borderline improved modestly to 3.5% (up 10 ground points year-over-year), which absorption said was accordant with its full-year borderline people scope of 4% to 4.5%, fixed the accustomed second-half weighting.

The radical ended the fractional with a nett currency presumption of £103 million, compared with £58 million astatine December 2024. Kier besides highlighted an operational milestone: an average nett currency presumption of £16.8 million for the half, compared with an mean nett indebtedness presumption of £37.6 million successful the prior-year period. Togwell said this marked “the archetypal clip successful 13 years” the institution had delivered mean nett cash.

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On currency flow, the institution reported adjusted EBITDA of £101 million and a moving superior outflow of £107 million, which was broadly successful enactment with the anterior twelvemonth and described arsenic emblematic for the archetypal half. Capex was £24 million, mostly linked to lease payments capitalized nether IFRS 16. The effect was a escaped currency outflow of £42 million, which absorption said was somewhat improved versus the prior-year period.

Infrastructure Services was the main contributor to first-half gross growth, with gross up 4.9% to £1.083 billion. Management attributed this to roadworthy superior projects, accrued obstruction enactment including HS2, and a ramp-up successful h2o enactment nether AMP8. The part delivered adjusted operating nett of £48.2 million, up £2.1 million, portion maintaining a 4.5% margin.

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