Image source: © 2025 Krish Capital Pty.Ltd

Highlights

  • Galliford Try shares up ~63% over 12 months, closing at 474p on September 17.
  • FY25 results delivered record profits, 3.0% margin achieved a year ahead of target.
  • Dividend lifted to 19.0p and £10m buyback announced, underpinned by £4.1bn order book.

Galliford Try Holdings plc (LSE:GFRD) has seen a notable share price re-rating in 2025, reflecting improving fundamentals and disciplined capital returns. The construction and infrastructure contractor, which refocused after the 2020 carve-out of its housebuilding arm, reported record FY25 results on September 17. Shares rose nearly 10% on the day to 474p and are up about 63% over 12 months, trading close to the top of their 52-week range of 273p to 480p.

The group now operates as a UK-focused contractor with a lean balance sheet, exposure to long-cycle public and regulated markets, and improving operating margins. Its market beta is around 1.5, reflecting higher share-price sensitivity compared with the broader index.

FY25 Results: Growth Across Revenue, Profits, and Margins

For FY25, Galliford Try reported revenue of approximately £1.88–1.90bn, up 6.3% year-on-year. Adjusted operating profit rose 37% to £40.6m, while adjusted pre-tax profit reached £45.0m, a 29% increase. Importantly, the group achieved its 3.0% divisional adjusted operating margin target a year earlier than planned, a milestone in its 2030 roadmap, which aims for 4.0%.

Average month-end cash stood at £178.7m, up 15%, while period-end cash was £237.6m with no bank debt or pension deficit. The order book reached £4.1bn, with 92% of FY26 and 75% of FY27 workload already secured, providing revenue visibility across multiple years.

Capital Returns: Dividend Growth and New Buyback

Galliford Try’s capital discipline has enabled it to lift returns. The board proposed a final dividend of 13.5p, taking the total FY25 dividend to 19.0p, up from 15.5p in FY24 (excluding special dividends). The final dividend has an ex-date scheduled for December 6, 2025.

In addition, the company completed a £10m buyback launched in October 2024 and announced another £10m programme alongside FY25 results. Since FY21, Galliford Try has returned about £107.7m through dividends and share repurchases.

Order Book Drivers: Water, Highways, and Energy

Galliford Try’s strategy leans on regulated and framework-led work, reducing reliance on cyclical private contracts. Two industry cycles are set to support growth:

  • Water (AMP8 2025–2030): Ofwat’s PR24 settlement outlines a record £104bn capital programme. Galliford Try is positioned via its Environment division, reinforced by the nmcn Water and AVRS acquisitions.
  • Energy Grid Upgrades: In August 2025, the group secured a place on National Grid’s £59bn HVDC frameworks, opening opportunities in energy infrastructure.

Other divisions in highways, defence, and education provide further diversification and exposure to long-term public funding.

Risks and Outlook

Project execution remains the key risk in contracting, where a single loss-making project can erode margins. Public-spending cycles and regulatory shifts in water and energy sectors also influence workload pacing. Supply chain inflation and UK macro conditions add further uncertainty.