Record £11.9B Order Book
Kier Group reports rising annual revenue and secures a record £11.9 billion order book.
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Key Points
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Kier’s basic earnings per share rose to £0.135 from £0.121 a year earlier, while adjusted earnings per share reached £0.224 for the full year.
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More than 95% of expected FY27 revenue and over 70% of FY28 revenue had already been secured through the order book, giving Kier unusually strong forward revenue visibility.
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Kier simplified its divisional structure and identified growth, resilience and performance as its three strategic priorities.
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The company said it had stopped making new Property development investments, marking a change in its capital-allocation approach.
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Analysts highlighted leverage risk, near-term remediation charges and seasonal cash-flow volatility as factors tempering the otherwise positive assessment of Kier’s financial performance and order-book strength.
Kier Group delivered strong full-year results, with revenue climbing 7% to £4.39 billion and adjusted operating profit reaching £169.8 million Watchlist News. The construction and infrastructure firm ended 2026 with £232 million in net cash, a 8% dividend hike, and a record £11.9 billion order book — enough to cover over 95% of expected 2027 revenue and more than 70% of 2028 revenue Seeking Alpha.
Order Book Provides Rare Forward Visibility
Kier's £11.9 billion order book grew 8% year-over-year and now covers an unusually high percentage of future revenue Guru Focus. Major wins include Hinchingbrooke hospital, East West Rail, and Greater Manchester stations. This forward visibility means the company knows exactly what work it will perform through 2028, reducing earnings uncertainty.
Profit and Cash Flow Gains Despite First-Half Slowdown
Statutory earnings rose to £61.7 million from £56.4 million a year earlier, while basic earnings per share climbed to £0.135 from £0.121 Seeking Alpha. Operating free cash flow hit £206 million. However, first-half pretax profit fell 14%, hurt by higher costs and lower margins — a warning sign the company is managing tight project economics.
New Strategic Focus and Capital Discipline
Kier simplified its divisional structure and named growth, resilience, and performance as core priorities Watchlist News. The company stopped making new property development investments, a major shift in capital allocation. Management expects 2027 earnings at the top end of board guidance, with medium-term goals including mid-single-digit revenue growth and double-digit adjusted earnings-per-share growth.
Risks Cloud Otherwise Positive Outlook
Analysts flagged leverage risk, future remediation charges, and seasonal cash-flow swings as headwinds Watchlist News. The 1.47% net margin leaves little room for error on large contracts. Net cash of £232 million — above the medium-term £200 million target — offers a cushion, but project execution risk remains elevated in a competitive infrastructure market.
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