Highlights

  • Revenue up 10% in Q3 FY26, marking five consecutive half-year periods of double-digit growth.
  • Contract wins and renewals total GBP 4.7bn YTD, with a bidding pipeline of GBP 30.4bn.
  • Free cash flow generation of GBP 74m Q3 YTD, supporting shareholder returns and acquisition funding.

Mitie Group plc (LSE:MTO), a leading UK Facilities Management, Transformation and Compliance company, has reported continued growth in its Q3 FY26 trading update, marking five consecutive half-year periods of double-digit revenue growth. The latest figures indicate that Mitie is consistently outperforming the UK FM market, driven by contract wins, strategic acquisitions, and a robust pipeline of future opportunities.

Sustained Revenue Growth Surpasses Industry Benchmarks

Mitie’s revenue in Q3 FY26 reached GBP 1,447m, a 10% increase compared with GBP 1,314m in Q3 FY25, including 4% organic growth. This represents the fifth consecutive half-year period of double-digit growth, underpinned by net contract wins, scope expansions on existing agreements, project work, and strategic acquisitions, including Marlowe. Sequential quarterly performance also improved, with Q3 revenue up 4% on Q2 FY26 and 13% higher than Q1 FY26. Year-to-date revenue for Q3 FY26 stands at GBP 4,124m, up 10% from the previous year.

Contract Wins and Expanding Order Book

During Q3 FY26, Mitie secured, extended, or renewed contracts with a total value of GBP 0.9bn, contributing to a year-to-date total of GBP 4.7bn, comparable to the prior year’s GBP 4.8bn. Key new wins included a GBP 100m per annum hygiene contract for Transport for London, hygiene and security services for Imperial College London, and security services for Eurostar, Asda, and Lidl. The pipeline of bidding opportunities expanded 28% to GBP 30.4bn, including GBP 24.3bn in Facilities Management and GBP 6.1bn in Projects.

Integration and Strategic Acquisitions Drive Future Opportunities

Mitie’s acquisition of Marlowe has strengthened its position in Facilities Compliance, delivering early synergies through operational consolidation and integration of field services. Additional acquisitions, including Forest Group and RMS, are enhancing capabilities in refrigeration, industrial heat pump installation, and water management. Cross-selling opportunities for Marlowe’s compliance services are underway with existing Mitie clients, reinforcing long-term revenue potential in regulated markets such as healthcare, education, and infrastructure.

Financial Position and Outlook

Free cash flow reached GBP 74m year-to-date, with GBP 71m returned to shareholders through share repurchases. Net debt increased to GBP 497m, reflecting capital deployment for acquisitions and incentive schemes, partially offset by cash flow generation. Mitie remains on track to deliver operating profit exceeding GBP 260m and free cash flow above GBP 120m for FY26. With continued contract wins, an expanded order book, and seasonal project activity, the company anticipates ongoing double-digit revenue growth into Q4.