Kier Group Reports Strong Fiscal 2026 Performance and Outlines Strategic Shift
Kier Group reported improved financial results for fiscal 2026, with revenue rising by 7.5% to £4.4 billion, adjusted operating profit increasing by 6.7% to £170 million, and adjusted EPS growing by 8.8%. The company's order book reached a record level of £11.9 billion, providing strong coverage for fiscal 2027 revenue expectations. Kier is shifting its strategy toward infrastructure growth while exiting the property development sector. It plans to run off existing property assets and release approximately £150 million in capital over three years. The company also outlined medium-term goals including operating margins of 4%–4.5%, cash conversion above 90%, and annual EPS growth exceeding 10%. Kier increased its full-year dividend to 7.8 pence per share, reflecting stronger financial performance. Infrastructure revenue rose by 10%, with a margin increase to 5.5%, driven largely by water-sector activity and rail work. The construction segment saw stable margins at 3.9% despite only modest growth in revenue.
Topics: dividend_increase free_cash_flow order_book profitability revenue_growth