Set to step down from the board on October 31, Andrew will be succeeded by Stuart Togwell, currently Kier’s executive director and group managing director of construction on 1 November 2025.

Chairman Matthew Lester said Andrew’s “exceptional leadership” over the last six years has “transformed” the business.

“We proudly remain one of the UK’s leading infrastructure services, construction and property groups,” he added. Under Andrew’s leadership, the group has increased its resilience, strengthened its financial position and currently has a record order book of over £11bn. Furthermore, during his tenure, Kier returned to the FTSE250 and recommenced dividend payments and has built a culture based on safety, delivery, discipline and performance excellence.

“Andrew and his management team set out a clear strategy, purpose and vision for the group, initially to deliver its medium-term value creation plan and latterly to deliver long-term sustainable growth - and with invigorated and motivated colleagues, Kier is realising this ambition.

“On behalf of the board and all his colleagues, I wish him the very best in everything he does.

“Following a thorough internal and external selection process, the board is delighted to appoint Stuart Togwell as its new chief executive. Stuart has played a pivotal role in Kier’s transformation and the board is confident that his skill set is ideally suited to leading Kier through the next chapter of its development and to deliver long-term sustainable growth.”

Andrew Davies, chief executive, said: “It has been an absolute privilege to lead Kier and to transform the group into a strong and sustainable business that benefits all stakeholders. I want to thank all the colleagues for their support, hard work and commitment over the last six years in building the foundations to ensure Kier remains a leading infrastructure services, construction and property company that is vital to the UK and is better placed than ever to succeed.”

Stuart Togwell, chief executive designate, added: “I am honoured to be appointed as the next chief executive and look forward to working with Kier’s exceptional teams to drive success and growth and deliver for our customers, our communities and this industry that I am so passionate about.” 

The news comes as Kier issued a trading update for the full year ended 30 June 2025, ahead of its final results due on 16 September 2025. The group reported strong operational and financial performance, with revenue and profit expected to be in line with the board’s expectations.

Kier has ended FY25 with a significantly improved balance sheet, underpinned by strong free cash flow generation and a solid net cash position of approximately £204 million, a 22% increase from FY24’s £167m. The group also substantially reduced its average month-end net debt to £49m, down from £116m the previous year, reflecting enhanced cash discipline and operational efficiency across its divisions.

An initial £20m share buyback programme, launched in January 2025, is already well progressed and is expected to complete in the first half of FY26, further supporting Kier’s strategy of delivering shareholder returns.

The group closed FY25 with a high-quality order book of approximately £11.0 billion, slightly up from £10.8bn in FY24. This strong order position provides excellent visibility, with 88% of FY26 revenue already secured. The robust pipeline is supported by the UK Government’s continued investment in infrastructure and regulated assets, areas in which Kier holds leading positions through its strategic frameworks.

Recent contract wins underscore the group’s disciplined bidding strategy and risk-aware growth approach.

Highlights include:

• Infrastructure Services: A £139m Green Recovery contract from Severn Trent to upgrade the Wanlip Sewage Treatment Works, and early-stage project awards under Southern Water’s AMP8 framework.
• Construction: A £41.8m contract for the Mayfield Community Learning Campus in Midlothian, and the first phase of Warwick University’s £700m STEM Connect development.
• Property: The formation of two new joint ventures, Investec Realis and Cervidae, aimed at unlocking long-term value, and planning approvals secured for 670 new homes across key residential sites set to begin delivery in FY26.

Kier’s Property division also made significant strides, delivering major project milestones and making notable progress toward its target returns on capital employed (ROCE). Around £30m was invested into the Property business during the year, supporting the expansion of its development pipeline and strategic partnerships.

Commenting on the update, Andrew Davies said: “The group has performed strongly in FY25, and is delivering well against its long-term sustainable growth plan. This performance, alongside the continued growth of our high-quality order book and recapitalisation of our Property business, supports the recent upgrade to our long-term margin targets and underpins the creation of strong and sustainable value for shareholders.”