Trading Update and Revised Margin Targets
Kier raises operating profit margin target to 4.0%-4.5% over 3-5 years; order book at £11bn with 80% FY26 revenue secured.
- Order book c.£11bn (prior £10.8bn at 30 June 2024)
- FY26 revenue secured c.80%
- Revised operating profit margin target 4.0%-4.5% (prior previous target not stated)
- Anglian Water IOS Alliance renewal up to £400m
- Education projects awarded c.£180m
- Bishop's Stortford redevelopment £200m
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Kier Group plc ("Kier" or "the Group"), a leading infrastructure services, construction and property group issues a trading update for the period to 30 April 2025 ahead of holding a Capital Markets Event for analysts and institutional investors later today.
Capital Markets Event
The Capital Markets Event will focus on the Group's unique operating model which enables Kier to drive above market growth through the cycle and its sector leading margins.
The event will be hosted by Chief Executive, Andrew Davies and Chief Financial Officer, Simon Kesterton and will include presentations from, and the opportunity to engage with, our senior management team.
The event presentation and recording will be made available on Kier's website.
Current Trading and Order Book
The Group continued to trade well and in line with the Board's expectations in the period to 30 April 2025.
The order book was c.£11bn, consistent with the half-year position, which represents a c.2% increase on the year-end position (30 June 2024: £10.8bn). The Group has secured revenue of c.80% for FY26, providing a high degree of visibility. Long-term framework positions are excluded from the order book and represent an additional opportunity.
Recent awards include:
Infrastructure Services:
o Natural Resources, Nuclear & Networks: a 5 year renewal of the Anglian Water IOS Alliance worth up to £400m
o Transportation: a one-year extension by Shropshire County Council for the maintenance of local highways
Construction:
o A PCSA by the University of Warwick to design and build STEM facilities
o Two education projects worth c.£180m
- Property: Planning permission received for £200m Bishop's Stortford station redevelopment (Network Rail Joint Venture)
Revised Margin Targets
Bidding discipline and risk management embedded across the business has driven a higher quality order book, which combined with the recapitalisation of our property business has led us to increase our operating profit margin target to 4.0%-4.5% in 3 to 5 years.
The Group is focused on delivering against its long-term sustainable growth plan, revised for the increased margin expectations:
| Revenue: | GDP + growth through the cycle |
| Adjusted operating profit margin: | 4.0% - 4.5% |
| Cash conversion of operating profit: | c.90% |
| Balance sheet: | Average month-end net cash with investment of surplus cash |
| Dividend: | Sustainable dividend policy: c.3x earnings cover through the cycle |
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.