Kier sees FY results at top end of expectations

(Sharecast News) - Construction and infrastructure firm Kier Group said on Tuesday that full-year profit and revenue were set to be at the top end of market expectations as strong trading momentum in the first half continued through the second half of the year. In an update for the year to the end of June, the company said that in the second half, its infrastructure segment benefited from continued strong growth in Water projects, supported by good momentum in Highways and Rail, through a full range of design, build and maintenance work.

In the construction business, growth was driven by the ramp-up of a number of significant projects, including HMP Glasgow, supported by the growing use of in‑house mechanical and electrical (M&E) capability across all regions.

The property arm saw an increase in activity compared to FY25, it said, albeit with transaction timings impacted by wider macroeconomic turbulence.

As at the end of June, the order book stood at around £11.9bn, up from £11bn a year earlier. Kier said it provides "a high degree of visibility" over near and medium term trading, representing over 90% of FY27 group revenue already secured.

Infrastructure secured around £1.5bn of new business in the second half across core markets, while the construction segment secured more than £1bn of new business.

Chief executive Stuart Togwell said: "Following our strong start to the year we have seen further good momentum through the second half, such that we now expect the outcome for FY26 to be at the top end of market expectations. We have also seen a notable increase in our order book, which continues to provide excellent revenue visibility, comprising substantial high quality opportunities across critical UK infrastructure.

"This success highlights the strength of our market positions, combined with the quality of our end to end capabilities, which provide a compelling platform for continued growth. Looking ahead, we are excited by the next phase of Kier's journey, as we continue to position the business to maximise value for all stakeholders, and look forward to sharing our ambitions for the group at the time of our results."

At 0855 BST, the shares were up 2.9% at 229.17p.

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