Kier Group Shares Rise: Delivers Strong FY25 Results; Highlights Record Order Book

Kier Group PLC (LON:KIE) stock gained ground on Tuesday after it released its FY25 results, showcasing robust operational delivery, profitable growth, and enhanced shareholder returns.

Revenue climbed to £4.09 billion, a 3% increase from £3.97 billion in FY24. Adjusted operating profit rose by 6% to £159.1 million, up from £150.2 million the previous year. The adjusted operating margin saw a 10bps improvement, reaching 3.9%, moving closer to its long-term target range of 4.0%-4.5%.

The company's balance sheet strength is evident in its net cash position, which surged by 22% to £204.1 million. Average month-end net debt significantly improved by around £67 million to £(49.2) million. Free cash flow stood at £155.4 million, representing a 125% operating cash conversion rate, well above the sustainable growth plan target of 90%.

Kier Group is rewarding shareholders with a proposed full-year dividend increase of 38% to 7.2p per share, representing earnings cover of 3x.

The company also initiated a £20 million share buyback program in January 2025, with over 30% completed as of June 30, 2025.

Key Drivers:

• Record Order Book: The £11 billion order book provides significant visibility and revenue security for future periods.
• Property Investment: Increased investment in the property segment is expected to deliver a ROCE target of 15% by FY28.

CEO Andrew Davies stated, “In the first year of our long-term sustainable growth plan the Group delivered strongly, with profit performance, in particular, ahead of our initial expectations.”

Davies added: “Building on our outperformance in FY25, the Group has started the current financial year well and for FY26 is trading slightly ahead of the Board's expectations. Kier remains well positioned to continue to deliver infrastructure that matters and benefit from the UK Government's 10-year Infrastructure Strategy spending commitments.”