Keller Group (LON:KLR) Posts Earnings Results

Key Points

• Record first-half performance: Keller Group reported 11% constant-currency revenue growth and a 17.1% increase in underlying operating profit, raising its margin to 7.3% and supporting expectations for a fourth consecutive record year.
• North America led expansion: Regional revenue rose 16.7% and operating profit increased 17.7%, while the order book grew 20% to £1.37 billion, driven by data centers, infrastructure work and the I-40 remediation contract.
• Growth remains uneven: Delayed South Florida multifamily projects, U.K. pricing pressure and Australian margin weakness offset some gains, although management maintained its upgraded FY 2026 outlook and announced a 57% increase in the interim dividend.

Keller Group (LON:KLR - Get Free Report) released its quarterly earnings results on Tuesday. The company reported GBX 115.10 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Keller Group had a net margin of 4.62% and a return on equity of 23.46%.

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

• Record H1 performance: Revenue rose 11% on a constant-currency basis and underlying operating profit increased 17.1%, lifting the operating margin to 7.3% and putting Keller on track for a fourth consecutive record year.
• North America drove growth with revenue up 16.7% and operating profit up 17.7%, supported by data centers, infrastructure projects and the multi-year I-40 highway remediation contract. The North American order book increased 20% to £1.37 billion.
• Data centers now account for 9% of group revenue, up from 3% in 2025, and management expects the U.S. growth trend to continue. The company also highlighted a 57% increase in the interim dividend and continued share buybacks.
• Trading remains uneven across the portfolio: South Florida multifamily revenue fell by roughly one-third as projects were delayed, the U.K. market faces intense competition and pricing pressure, and Keller Australia experienced margin pressure from weather, project mix and pricing.
• Management retained confidence in achieving its upgraded FY 2026 expectations and sustaining margins above 7%, but cited people and specialist operational talent as key growth bottlenecks. Further details on longer-term growth, M&A and capital allocation are being deferred to the October Capital Markets Day.

Keller Group Stock Down 1.4%

Keller Group stock opened at GBX 3,008 on Tuesday. The firm has a market cap of £2.05 billion, a PE ratio of 15.14, a P/E/G ratio of 2.86 and a beta of 1.03. The company has a debt-to-equity ratio of 48.39, a quick ratio of 1.17 and a current ratio of 1.44. The firm's 50 day moving average price is GBX 2,846.56 and its two-hundred day moving average price is GBX 2,331.69. Keller Group has a twelve month low of GBX 1,238 and a twelve month high of GBX 3,518.

Analyst Ratings Changes

KLR has been the topic of a number of research analyst reports. Royal Bank Of Canada lifted their price target on Keller Group from GBX 2,050 to GBX 2,270 and gave the company a "sector perform" rating in a report on Tuesday, April 14th. Berenberg Bank increased their price objective on Keller Group from GBX 3,150 to GBX 3,300 and gave the stock a "buy" rating in a research note on Tuesday. Finally, Peel Hunt restated a "buy" rating and set a GBX 2,910 price objective on shares of Keller Group in a research report on Tuesday. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, Keller Group has a consensus rating of "Moderate Buy" and an average price target of GBX 2,670.

About Keller Group

Keller Group plc provides specialist geotechnical services in North America, Europe, the Asia-Pacific, the Middle East, and Africa. The company offers ground improvement services, grouting, deep foundations, earth retention, marine, and instrumentation and monitoring services, as well as post-tension systems and industrial services. It also provides solutions, such as bearing capacity improvement, low carbon construction, containment, excavation support, stabilisation, marine structures, seepage control, slope stabilization, and monitoring.

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