The group recorded revenues of just over £2 billion, up 2.6% on the previous year, driven largely by momentum in its Infrastructure Services division. Adjusted operating profit rose 6.6% to £71 million, lifting margins to 3.5%, while reported operating profit increased to £49.9m.

In a significant milestone, Kier achieved an average net cash position across the period, its first in more than a decade, closing HY26 with £16.8m net cash compared with £37.6m net debt a year earlier. The company said this reflected continued discipline in operational delivery and cash management.

The group also completed a refinancing of its revolving credit facility in October, replacing its £150m RCF with a £190m facility running initially to 2028, with the option to extend to 2030.

Kier said its strategy remains focused on delivering essential economic and social infrastructure for government, regulated industries and private clients, with around 90% of revenues coming from public sector and regulated markets.

During the period, the group made several organisational changes aimed at strengthening leadership capacity and aligning its structure with growth opportunities. Recent appointments include new CFO Tom Hinton and construction managing director Martin Staehr, alongside the creation of chief operating officer and group commercial director roles.

Two major divisions, Transportation and Natural Resources, Nuclear and Networks, were merged to form a single infrastructure “powerhouse”, designed to offer integrated delivery across key national programmes.

The company also launched its Naturally Digital programme to improve productivity and data-led decision-making across its operations.

Record order book and sector momentum

Kier’s order book rose 5% to a record £11.6bn, securing 94% of forecast FY26 revenue. Infrastructure Services saw particularly strong activity, including accelerated work in the water sector supported by in-house design capabilities. Construction benefited from framework wins across justice, education, healthcare and defence, as well as a strong presence in London’s commercial market.

The group highlighted continued progress in its Property division, which remains on track to deliver a 15% ROCE by FY28. Around 60% of its development pipeline now has planning permission, including 5,500 residential units, with six schemes under construction and four being marketed for sale. The property portfolio carries a GDV of £3bn.

Following the completion of a £20m share buyback in December, Kier has announced a further £25m programme to be executed over the next 12 months. The Board has also declared an interim dividend of 2.6p per share—up 30% on last year—representing one third of the expected full-year payout.

The dividend will be paid on 22 May 2026, with shares trading ex-dividend from 16 April.

Chief executive Stuart Togwell said the results reflected the strength of Kier’s customer relationships and operational performance.

“We have delivered a strong first half, with good growth in both revenue and profits, reaching an average net cash position for the first time in 13 years, a significant milestone for the group,” he said.

“These results reflect the strength of our customer relationships, the quality of our teams and our operational excellence. Underpinned by our robust cash generation, we are pleased to announce an increase in the interim dividend, in line with earnings, and a further £25m share buyback programme.

“Our order book has grown to a record £11.6bn and we have seen this momentum continue into the second half with a number of appointments to frameworks in key sectors of health, education, water and roads, with further clear opportunities ahead in energy and defence. This underpins the confidence we have in our ability to shape the future of infrastructure, supporting the delivery of the UK Government’s 10-year pipeline of investment.

“Across the group, there is real energy and optimism supported by the recent steps we have taken to optimise our structure and leadership capability, to maximise the opportunities ahead and ensure we are poised for further sustainable growth.

“Following our strong first half performance, the group continues to trade well with full year performance forecast to be in line with the Board’s expectations. With a growing, high quality order book, expert project delivery, robust cash generation and disciplined use of capital, we remain confident in driving further returns for our stakeholders.”