**Summary of Keller Group PLCs Interim Results for the Half Year Ended 30 June 2025**
Keller Group PLC, the worlds largest geotechnical specialist contractor, reported its interim results for the first half of 2025, showcasing a strong performance ahead of market expectations. Despite a slight decline in revenue to ยฃ1,457.7 million (from ยฃ1,489.8 million in H1 2024), the company maintained robust underlying operating profit at ยฃ102.6 million, with a margin of 7.0%. Key highlights include
1. **Financial Performance**
Revenue decreased by 2% but increased by 1% on a constant currency basis.
Underlying operating profit declined by 9% (6% in constant currency) due to normalization in North America, particularly at Suncoast, but was offset by growth in Europe, Middle East (EME), and Asia-Pacific (APAC).
Net debt reduced to ยฃ61.5 million (IAS 17 basis), driven by a ยฃ25 million share buyback and increased working capital investment.
Dividend per share increased by 10% to 18.3p.
2. **Operational Highlights**
Strong order book sustained at ยฃ1.6 billion.
Successful completion of an initial ยฃ25 million share buyback, with plans for an additional ยฃ25 million tranche in H2.
Improved safety metrics, with an Accident Frequency Rate reduced to 0.04.
3. **Regional Performance**
**North America**Revenue slightly ahead at ยฃ867.8 million, but profitability declined by 20.5% due to pricing normalization at Suncoast and Foundations.
**EME**Revenue stable at ยฃ408.3 million, with significant profit growth to ยฃ14.6 million, driven by improved project execution.
**APAC**Revenue increased by 2.9% to ยฃ181.6 million, with profit growth of 36.3% to ยฃ13.9 million, led by Keller Australia and Austral.
4. **Strategic Developments**
James Wroath appointed as Chief Executive Officer, effective 18 August 2025.
Continued focus on sustainability, with progress toward net-zero emissions by 2050.
5. **Outlook**
Full-year 2025 expectations maintained despite anticipated FX headwinds, supported by a strong order book and healthy tendering pipeline.
Plans to increase the interim dividend and launch an additional share buyback in H2.
Overall, Keller Group demonstrated resilience and strategic focus, positioning itself for continued growth despite macroeconomic challenges.
Here is the comparison of financials and debt year on year presented as an HTML table:
**Key Observations:** 1. **Revenue Decline:** Revenue decreased by 2% year-on-year, primarily due to normalization in North America, particularly at Suncoast.
2. **Profitability Compression:** Underlying operating profit declined by 9%, leading to a 60bps decrease in the operating margin.
3. **Cash Flow Reduction:** Free cash flow before interest and tax significantly dropped by 62%, impacted by increased working capital investment and share buybacks.
4. **Debt Reduction:** Net debt decreased substantially, with a 39% reduction on the bank covenant basis and a 23% reduction on the statutory IFRS 16 basis.
5. **Dividend Increase:** Dividend per share increased by 10%, reflecting the company's commitment to shareholder returns despite challenging conditions. This table provides a concise comparison of key financial and debt metrics between H1 2025 and H1 2024, highlighting the year-on-year changes.