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Highlights

  • Order book stands at approximately £11 billion, up 2% from June 2024.

  • Revenue visibility for FY26 reaches around 80%, supported by new project wins.

  • Operating profit margin target raised to 4.0%–4.5% within 3 to 5 years.

Kier Group plc (LSE:KIE), a UK-based infrastructure services, construction, and property company, has issued a trading update for the period ending 30 April 2025, reporting a strategic uplift in its operating margin expectations.

The Group confirmed that trading remained in line with the Board's expectations throughout the period. Kier’s order book is approximately £11 billion, consistent with the half-year position and reflecting a 2% increase compared to the financial year-end figure of £10.8 billion as of 30 June 2024. The company has already secured around 80% of its anticipated revenue for the financial year ending June 2026. In addition, long-term framework agreements, which are not included in the order book, represent further potential growth opportunities.

Several notable contract wins were secured across Kier’s operating divisions:

  • Infrastructure Services:

    • A five-year renewal of the Anglian Water Integrated Operational Solutions (IOS) Alliance contract, valued at up to £400 million.

    • A one-year contract extension for highways maintenance services by Shropshire County Council.

  • Construction:

    • A pre-construction services agreement (PCSA) with the University of Warwick for the design and build of new STEM facilities.

    • Two education sector projects with a combined value of approximately £180 million.

  • Property:

    • Planning permission has been granted for the £200 million redevelopment of Bishop’s Stortford station, a joint venture with Network Rail.

Kier also announced a revision to its operating profit margin targets, reflecting the benefits of improved bidding discipline, risk management, and the recent recapitalisation of its property division. The Group now targets an adjusted operating profit margin of 4.0% to 4.5% within the next three to five years.

The updated financial framework includes a revenue growth target in line with GDP trends over the cycle, and a cash conversion rate of approximately 90% of operating profit. Kier also aims to maintain a balanced financial position, with average month-end net cash and strategic use of surplus cash for investment. The Group’s dividend policy remains unchanged, targeting a sustainable payout with earnings cover of approximately three times through the cycle.