Kier Group Stock Earnings Reports

Key investor points: Kier delivered FY25 revenue up 3% and adjusted operating profit of £159m (3.9% margin), progressing toward its long‑term margin target of 4–4.5%. The order book is a record £11bn, providing revenue visibility that covers ~91% of targeted FY26 and ~70% of FY27. Balance sheet and cash: net cash £204m at June 2025 and average month‑end net debt improved to £49m. Free cash flow was strong (£155m) with cash conversion of 125%, enabling a proposed full‑year dividend of 7.2p (up 38%) and an initial £20m share buyback (about 50% complete). The Group has positions on frameworks totalling ~£156bn (including ~£15bn in water) and expects water (AMP8) to be a long‑term growth driver. Property capital deployment is being increased (capital employed £198m, targeting ~£225m) aiming for ~15% ROCE by ~2027/28. Risk profile: ~60% of order book is target‑cost or cost‑reimbursable (lower risk). Management highlights continued cost and performance actions that offset inflation, plans to maintain disciplined capital allocation (dividends ~3x cover through cycle, selective M&A), and an orderly leadership transition with Stuart Togwell becoming CEO on 1 Nov 2025. ESG progress includes SBTi‑validated net zero targets and improvements in safety and emissions.