Kier Group (LON:KIE) Issues Quarterly Earnings Results

Key Points

• Strong FY2026 performance: Kier Group reported 7.5% revenue growth to £4.4 billion, a 6.7% increase in adjusted operating profit to £170 million, and a record £11.9 billion order book.
• Improved financial position: The company generated £165 million in free cash flow and achieved its first full-year average net cash position since 2012. It is targeting more than £200 million of average net cash by FY2029.
• Positive outlook and strategy shift: Management expects FY2027 adjusted EPS at the top end of previous guidance and set medium-term targets for mid-single-digit revenue growth, 4%-4.5% operating margins, and double-digit EPS growth, while exiting new property development investments.

Kier Group (LON:KIE - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported GBX 23.50 EPS for the quarter, Digital Look Earnings reports. Kier Group had a net margin of 1.47% and a return on equity of 11.69%.

Here are the key takeaways from Kier Group's conference call:

• Positive Sentiment: Kier reported FY2026 revenue growth of 7.5% to £4.4 billion and adjusted operating profit growth of 6.7% to £170 million, while its order book reached a record £11.9 billion.
• Positive Sentiment: Cash generation and the balance sheet improved materially, with £165 million of free cash flow, a first full-year average net cash position since 2012, and a target of more than £200 million of average net cash by FY2029.
• Positive Sentiment: Management introduced medium-term targets of mid-single-digit annual revenue growth, a 4%-4.5% adjusted operating margin, and double-digit EPS CAGR, supported by growth opportunities in water, energy, defense, and healthcare.
• Positive Sentiment: Kier will stop investing in new property developments and expects to release approximately £150 million from the existing portfolio over the next three years, allowing capital to be redirected toward the balance sheet, acquisitions, and shareholder returns.
• Neutral Sentiment: Management said FY2027 adjusted EPS should be at the top end of prior expectations, but acknowledged exposure to supply-chain and macroeconomic pressures; it expects cash conversion to normalize from FY2026’s unusually strong 121% while maintaining a target above 90%.

Kier Group Stock Up 4.0%

Shares of KIE stock opened at GBX 258 on Tuesday. Kier Group has a 52-week low of GBX 186.80 and a 52-week high of GBX 263.60. The stock has a market cap of £1.12 billion, a price-to-earnings ratio of 19.69, a PEG ratio of 0.29 and a beta of 0.89. The firm's 50-day moving average is GBX 243.84 and its 200-day moving average is GBX 221.29. The company has a debt-to-equity ratio of 230.22, a quick ratio of 0.69 and a current ratio of 0.86.

Analyst Ratings Changes

Separately, Berenberg Bank reaffirmed a "buy" rating and issued a GBX 260 target price on shares of Kier Group in a research report on Wednesday, July 22nd. Three investment analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock has an average rating of "Buy" and an average price target of GBX 253.33.

About Kier Group

Kier Group is a leading infrastructure services, construction and property group based in the UK. Our purpose is to sustainably deliver infrastructure which is vital to the UK with a vision is to be the UK's leading infrastructure services and construction company. We operate through three segments; Infrastructure Services, Construction and Property. Infrastructure Services comprises our Transportation and Natural Resources, Nuclear and Networks business. Transportation: builds and maintains roads for National Highways and a number of district and county councils as well as our rail, airports' infrastructure and ports' businesses. Natural Resources, Nuclear and Networks: delivers long-term contracts providing repairs, maintains and support capital projects to the water, energy, and telecommunications sectors. Construction — comprises of our Regional Building, Strategic Projects, Kier Places (Housing Maintenance and Facilities Management), and International businesses.