Galliford Try (LON:GFRD) Issues Quarterly Earnings Results

Key Points

• Strong FY2026 results: Revenue increased 3% to £1.93 billion, while adjusted pretax profit rose 24% to £55.9 million and adjusted EPS grew 23.1% to 42.4p.
• Solid financial position and visibility: Galliford Try ended the year with £259 million in cash, no bank debt or pension liabilities, and a substantial order book securing most FY2027 revenue. The board also announced a £15 million share buyback and a 23.5p dividend.
• Positive outlook with risks: Management expects further margin improvement in FY2027, although Infrastructure growth may flatten as projects enter earlier stages and the company resumes corporation tax payments after exhausting historic tax losses. Berenberg raised its price target to 750p and maintained a “buy” rating.

Galliford Try (LON:GFRD - Get Free Report) released its earnings results on Thursday. The company reported GBX 41.70 EPS for the quarter, Digital Look Earnings reports. Galliford Try had a return on equity of 30.23% and a net margin of 1.93%.

Here are the key takeaways from Galliford Try's conference call:

• Strong FY2026 performance: Revenue rose 3% to £1.93 billion, adjusted PBT increased 24% to £55.9 million, margins improved to 3.5%, and adjusted EPS grew 23.1% to 42.4p.
• Galliford Try reported a robust balance sheet with £259 million of year-end cash, £216.2 million of average month-end cash, no bank debt or pension liabilities, and continued 100% cash conversion. The board also announced a new £15 million share buyback and a 23.5p dividend.
• The order book remains strong and provides substantial revenue visibility, with £2.7 billion in Building and £1.7 billion in Infrastructure; 93% of Building revenue and 87% of Infrastructure revenue for FY2027 are secured.
• Management expects similar revenue growth and further margin progression in FY2027, supported by public infrastructure spending, AMP8 water work, specialist higher-margin businesses, affordable housing opportunities, and disciplined bolt-on M&A.
• Infrastructure revenue growth is expected to flatten in FY2027 as highways projects move into lower-revenue early stages and the AMP8 transition progresses. In addition, historic tax losses are largely exhausted, so the company expects to resume corporation tax payments from FY2027.

Galliford Try Stock Up 6.4%

GFRD stock opened at GBX 651.40 on Thursday. The firm has a market cap of £643.69 million, a price-to-earnings ratio of 18.56, a PEG ratio of 0.90 and a beta of 0.47. Galliford Try has a 1-year low of GBX 465 and a 1-year high of GBX 658. The company has a debt-to-equity ratio of 43.47, a current ratio of 0.92 and a quick ratio of 0.89. The firm has a fifty day moving average price of GBX 598.32 and a two-hundred day moving average price of GBX 549.94.

Wall Street Analyst Weigh In

Separately, Berenberg Bank raised their price target on shares of Galliford Try from GBX 680 to GBX 750 and gave the stock a "buy" rating in a research note on Thursday. Two research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of GBX 650.

About Galliford Try

Galliford Try is one of the UK's leading construction groups, working to improve the UK's built environment, delivering positive, lasting change for the communities we work in on behalf of our clients. Our business operates mainly under the Galliford Try and Morrison Construction brands, focusing on areas where we have core and proven strengths, namely in Building, Highways and Environment. We see long-term growth and appropriate margins in these markets. Our company is founded on our values of excellence, passion, integrity and collaboration, and our vision is to be a people-orientated, progressive business, driven by our values to deliver lasting change for our stakeholders and the communities we work in.