Story
Kier Group Shares Rally on Strong Earnings and Record Order Book
Summary
Kier Group stock jumped after the construction firm reported strong full-year results, a record order book, and its first average net cash position in over a decade.
Shares in Kier Group (LSE: KIE) rose sharply on Tuesday after the infrastructure and construction company reported strong financial results for the year ended June 30, 2026, and issued an upbeat outlook. The stock gained 3.8% to trade at 257.4 pence, outperforming a falling FTSE 250 index.
Strong Financial Performance
The company announced that it delivered on all key financial metrics, with figures meeting or exceeding market expectations. The results underscore a successful multi-year recovery for the firm.
- Revenue: Climbed 7.5% to £4.39 billion.
- Adjusted Operating Profit: Rose 6.7% to £169.8 million.
- Adjusted Earnings Per Share (EPS): Advanced 8.8% to 23.5p.
Balance Sheet and Shareholder Returns
A key milestone highlighted in the report was the group's achievement of an average net cash position for the first time in more than a decade, signaling a significant transformation of its balance sheet. Operating free cash flow reached £206 million, representing a cash conversion rate of 121%, well above its medium-term target of 90%.
AdIn a show of confidence, the board increased the full-year dividend by 8% and is continuing a £25 million share buyback program, enhancing shareholder returns.
Record Order Book Secures Future Revenue
Kier's forward visibility has been strengthened by a record order book, which expanded by 8% to £11.9 billion. According to the company, this secures more than 95% of its anticipated revenue for fiscal year 2027 and over 70% for fiscal 2028.
Chief Executive Stuart Togwell stated the company enters the new fiscal year with strong momentum, expressing confidence that earnings will be at the top end of the board's prior expectations. Recent contract wins, including work on the New Hospitals Programme and East West Rail, reinforce its alignment with the UK's long-term infrastructure spending plans.
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