Kier Group delivers record order book and higher shareholder returns

The UK infrastructure services, construction and property group posted revenue growth of 3% and a 6% rise in adjusted operating profit, with margins edging up to 3.9%. Reported operating profit climbed 10% to £113.7 million. Free cash flow of £155.4m represented a 125% cash conversion, well above the group’s 90% target.

One of the standout achievements of FY25 was the record order book of £11.0 billion, up from £10.8bn in FY24. This provides significant long-term visibility, with 91% of FY26 revenue and around 70% of FY27 revenue already secured.

Shareholders also benefited from Kier’s improved financial performance. The Board proposed a full-year dividend of 7.2p – a 38% increase on the previous year – alongside a £20 million share buyback programme launched in January 2025, over 30% of which was completed by year-end.

Chief executive Andrew Davies said the results exceeded expectations in the first year of the plan: “In the first year of our long-term sustainable growth plan the group delivered strongly, with profit performance, in particular, ahead of our initial expectations. Our adjusted operating profit margin of 3.9% has progressed well towards our target range of 4.0%-4.5%, while we also grew our order book to a record £11bn, providing considerable, multi-year revenue visibility. These achievements, together with our strong recurring cashflow and balance sheet discipline, enabled us to invest further in our Property business; commence an initial £20m share buyback programme; and significantly increase the level of dividends payable to shareholders.

“Building on our outperformance in FY25, the group has started the current financial year well and for FY26 is trading slightly ahead of the board’s expectations. Kier remains well-positioned to continue to deliver infrastructure that matters and benefit from the UK Government’s 10-year Infrastructure Strategy spending commitments. We remain confident in our strong sustainable cash generation, allowing us to allocate capital efficiently, utilising our integrated capabilities to drive compounding returns for our stakeholders.”

Kier continued to invest in growth, particularly in its Property segment, with £198m of capital now employed and a return on capital employed (ROCE) target of 15% set for FY28.

Looking ahead, the group confirmed it had made a strong start to FY26 and is trading slightly ahead of expectations. Davies, who will step down after six years at the helm, added: “On a personal note, it has been a privilege to lead Kier over the last six years and to see the group transformed into a strong and sustainable business with enhanced resilience and a reinforced financial position. That transformation has only been possible due to the capability, professionalism and hard work of Kier’s teams and the support of our customers and partners. I would like to thank them for their support and commitment in ensuring Kier’s continued success in delivering infrastructure that is vital to the UK.

“Finally, I would like to congratulate Stuart on his well-deserved appointment as the next chief executive of Kier and wish him every success.”

With a stronger balance sheet, disciplined capital allocation, and a growing pipeline of secured work, Kier said it remains confident in delivering sustainable growth, resilient cash generation, and compounding returns for stakeholders.