Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • FY25 revenue and profit expected in line with board expectations; c.£11bn order book with 88% of FY26 revenue secured.

  • Net cash at year-end rises to approximately £204 million, up 22% from FY24.

  • CEO Andrew Davies to retire; Stuart Togwell named successor.

Kier Group plc (LSE:KIE), a leading UK infrastructure services, construction, and property group, has released a trading update for the financial year ended 30 June 2025. The Group confirmed that both revenue and profit are expected to align with the Board’s forecasts, supported by its operational performance and significant cash generation across its core divisions.

The year-end order book stood at approximately £11.0 billion, reflecting positive momentum and effective bid discipline. This positions the Group with 88% of FY26 revenue already secured, offering high visibility on near-term performance. Growth opportunities remain well-supported by continued government investment in national infrastructure and regulated assets.

Kier also announced that Group Chief Executive Andrew Davies will retire. He will be succeeded by Stuart Togwell, who currently serves as Group Managing Director for Construction. Further details of the transition were outlined in a separate company announcement.

During FY25, Kier recorded notable operational progress. In the Water business, the ramp-up of AMP8-related work helped offset moderate gains in the Transportation sector and steady volumes in the Construction division. The Property business completed three major developments, contributing to a rising return on capital employed.

Throughout the year, Kier secured several major project wins across its operating segments:

Infrastructure Services:

  • £139 million contract awarded for main works at Severn Trent’s Wanlip Sewage Treatment upgrade under the Green Recovery scheme.

  • Initial awards under Southern Water’s AMP8 Strategic Delivery Partnership framework.

Construction:

  • £41.8 million contract for Mayfield Community Learning Campus awarded by Midlothian Council.

  • Appointed under a PSCA by Warwick University for the initial phase of its £700 million STEM Connect development.

Property:

  • Two new joint ventures, Investec Realis and Cervidae, launched to unlock long-term value.

  • Planning approvals secured for five residential sites across Bishop’s Stortford, South Wokingham, Guildford, and Watford, with 670 homes scheduled to begin construction in FY26.

Financially, Kier closed FY25 with a net cash position of approximately £204 million, a 22% increase over the prior year figure of £167 million. The improvement was underpinned by operating free cash flow, bolstered by seasonal inflows in the Construction division.

While increased dividends (£24 million), share buyback spending (£7 million to date out of £20 million), and property investments (around £30 million) impacted overall outflows, average month-end net debt significantly improved to £(49) million compared to £(116) million in FY24. 

Kier’s initial £20 million share buyback programme is progressing as planned and is expected to conclude in the first half of FY26. Full-year results for FY25 will be published on 16 September 2025.