Kier Group (LON:KIE) Issues Earnings Results

Kier Group (LON:KIE - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported GBX 23.50 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Kier Group had a return on equity of 11.95% and a net margin of 1.42%.

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 Price Performance

Shares of KIE traded up GBX 7.40 during trading hours on Friday, hitting GBX 307.40. 8,987,132 shares of the company were exchanged, compared to its average volume of 3,708,052. The company has a market capitalization of £1.33 billion, a PE ratio of 23.47, a PEG ratio of 0.29 and a beta of 0.89. The company has a debt-to-equity ratio of 360.81, a current ratio of 0.90 and a quick ratio of 0.69. The firm has a fifty day simple moving average of GBX 249.22 and a 200-day simple moving average of GBX 222.75. Kier Group has a one year low of GBX 186.80 and a one year high of GBX 313.60.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the company. Berenberg Bank restated a "buy" rating and issued a GBX 260 price objective on shares of Kier Group in a report on Wednesday, July 22nd. Deutsche Bank Aktiengesellschaft lifted their target price on Kier Group from GBX 295 to GBX 330 and gave the stock a "buy" rating in a report on Tuesday. Four equities research 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 target price of GBX 272.50.

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.