Kier Group PLC, a leading UK infrastructure services, construction, and property group, reported strong financial results for the year ended 30 June 2025 (FY25). The company achieved revenue growth of 3% to £4,087.8 million, with adjusted operating profit increasing by 6% to £159.1 million. Adjusted operating margin improved by 10 basis points to 3.9%, moving closer to the long-term target of 4.0%-4.5%.
Key highlights include
**Revenue and Profit Growth** Revenue grew by 3% to £4,087.8 million, and adjusted operating profit increased by 6% to £159.1 million, driven by strong operational delivery across all businesses.
**Improved Margins** Adjusted operating margin rose by 10 basis points to 3.9%, progressing towards the long-term target of 4.0%-4.5%.
**Record Order Book** The order book reached a record high of £11.0 billion, providing significant visibility for future revenues, with 91% of FY26 revenue and approximately 70% of FY27 revenue already secured.
**Strong Cash Flow** Free cash flow was £155.4 million, representing 125% operating cash conversion, significantly above the sustainable growth plan target of 90%.
**Balance Sheet Strengthening** Average month-end net debt improved by £67 million to £(49) million, reflecting strong cash generation and disciplined capital management.
**Increased Shareholder Returns** The proposed full-year dividend was increased by 38% to 7.2p per share, and a £20 million share buyback program was announced in January 2025, with over 30% completed by 30 June 2025.
**Strategic Investment** Increased investment in the Property segment, with capital employed reaching £198 million, on track to achieve a ROCE target of 15% by FY28.
Kiers CEO, Andrew Davies, highlighted the companys strong performance in the first year of its long-term sustainable growth plan, emphasizing the progress towards margin targets, record order book, and enhanced shareholder returns. The company remains well-positioned to benefit from the UK Governments infrastructure spending commitments and is confident in its sustainable cash generation and efficient capital allocation.
Looking ahead, Kier expects to continue delivering infrastructure projects and is trading slightly ahead of expectations for FY26. The companys focus on operational excellence, disciplined cash management, and strategic capital allocation is expected to drive further growth and value creation for stakeholders.
| Metric | Year to 30 June 2025 (£m) | Year to 30 June 2024 (£m) | Change |
|---|---|---|---|
| Revenue | 4,087.8 | 3,969.4 | 3% |
| Adjusted Operating Profit | 159.1 | 150.2 | 6% |
| Adjusted Operating Margin (%) | 3.9 | 3.8 | 10bps |
| Adjusted Profit Before Tax | 125.4 | 118.1 | 6% |
| Net Cash | 204.1 | 167.2 | 22% |
| Average Month-End Net Debt | (49.2) | (116.1) | 58% |
| Free Cash Flow | 155.4 | 185.9 | (16)% |
| Order Book (£bn) | 11.0 | 10.8 | 2% |