Kier Group, a UK infrastructure and construction company, reported strong fiscal 2026 growth as revenue increased 7.5% to £4.39 billion and adjusted operating profit rose 6.7% to £169.8 million.
Adjusted profit before tax increased 8.8% to £136.4 million, while adjusted earnings per share rose 8.8% to 23.5p. Kier maintained an adjusted operating margin of 3.9%.
Cash generation was another major highlight. Operating free cash flow reached £206 million, representing 121% cash conversion, while year-end net cash increased 13.9% to £232 million. Kier also achieved average net cash of £10.7 million for the year, compared with average net debt of £49.2 million in fiscal 2025, marking its first average net cash position in more than a decade.
The company proposed an 8% increase in its full-year dividend to 7.8p and continued a £25 million share repurchase program announced in March.
Kier’s order book increased approximately 8% to a record £11.9 billion, providing substantial visibility into future revenue. More than 95% of expected fiscal 2027 revenue and more than 70% of fiscal 2028 revenue are already secured.
Its framework positions have expanded to approximately £200 billion from £150 billion a year earlier, covering healthcare, water, defense, energy, education, transportation and regional construction. The company reported a framework win and renewal rate above 80%.
Infrastructure was particularly strong. The division’s order book increased 14% to £7.4 billion and adjusted operating profit climbed 16% to £129 million, with its margin improving to 5.5%. Recent awards include work involving UK fusion energy, Sizewell C, National Highways, Norfolk Highways and East West Rail.
Kier is simplifying its portfolio around Infrastructure and Construction and will stop investing in new Property developments beginning in fiscal 2027. Capital released from existing developments will instead support balance-sheet improvement.
Updated medium-term goals call for mid-single-digit revenue growth, an adjusted operating margin of 4% to 4.5%, more than 90% operating cash conversion, double-digit adjusted EPS growth and average net cash exceeding £200 million by fiscal 2029.
Based on its growing order book and recent contract wins, Kier now expects fiscal 2027 earnings to reach the top end of the board’s previous expectations.
KEY QUOTES:
“I am pleased to report that Kier has delivered another year of strong performance, achieving excellent revenue and profit growth. We continued to bolster the Group’s financial profile, reaching an average net cash position for the first time in over a decade, a significant milestone from which to build.”
Stuart Togwell, Chief Executive of Kier Group
