Galliford Try FY25: revenue, profit and margin all up, with record visibility
Galliford Try has posted a fifth straight year of growth and, crucially, hit its 2026 margin target a year early. Revenue rose 6.3% to £1,875.2m, adjusted profit before tax jumped 28.6% to £45.0m, and the combined Building and Infrastructure divisional adjusted operating margin reached 3.0% (up 42 bps). The group ends the year with a £4.1bn order book and 92% of FY26 revenue already secured, plus 75% for FY27.
Management says trading has started the new year “slightly ahead of expectations” and remains confident given planned government investment in water, highways, defence, custodial and education. Near term, revenue growth is expected to flatten as the water sector moves from AMP7 to AMP8, but margins are guided to keep improving towards the 4.0% divisional target by 2030.
Headline numbers investors should know
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | £1,875.2m | £1,763.7m | +6.3% |
| Adjusted operating profit | £40.6m | £29.6m | +37.2% |
| Divisional adjusted operating margin | 3.0% | 2.5% | +42 bps |
| Adjusted profit before tax | £45.0m | £35.0m | +28.6% |
| Adjusted basic EPS | 34.4p | 29.6p | +16.2% |
| Order book | £4.1bn | £3.8bn | +7.9% |
| Net cash (year-end) | £237.6m | £227.0m | +4.7% |
| Average month-end cash | £178.7m | £154.8m | +15.4% |
| Total dividend | 19.0p | 15.5p | +22.6% |
Definitions: the “divisional adjusted operating margin” is adjusted operating profit divided by adjusted revenue for the combined Building and Infrastructure divisions.
Dividend up 22.6% and a fresh £10m buyback
The Board is recommending a 13.5p final dividend (payable 5 December 2025, subject to approval), bringing the total to 19.0p for the year on 1.8x cover against adjusted EPS of 34.4p. On top, a new £10m share buyback has been announced, following completion of the previous £10m programme in May 2025. Capital returns continue to be a clear part of the story alongside growth.
Balance sheet: cash-rich, debt-free and RCF in place
Year-end net cash is £237.6m, with average month-end cash of £178.7m despite a change in HMRC’s VAT payment schedule pulling forward roughly £17m of cash outflows into FY25 and expected to reduce the FY26 average by a further c£18m. There is no drawn bank debt and no defined benefit pension liabilities. A £25m undrawn revolving credit facility provides extra flexibility.
Order book quality and revenue visibility
The order book stands at £4.1bn, 93% in public and regulated sectors and heavily framework-based. That matters because frameworks typically carry clearer terms and repeatable work profiles. Revenue visibility is unusually strong: 92% of FY26 revenue is secured already, and 75% for FY27. That takes a lot of forecast risk off the table.
Divisional performance: Building and Infrastructure both stepped up
Building: steady growth, better margins
Building revenue rose 2.8% to £964.7m, with adjusted operating profit up 17.1% to £28.1m and margin at 2.9% (up 36 bps). The order book increased 7.0% to £2,454m with wins across education, defence and custodial, plus facilities management. Notable wins include fire safety projects for the Ministry of Justice and single living accommodation at RAF Digby. The division also absorbed around £133m of work from a competitor that went into administration.
Infrastructure: highways-led, with water transitioning from AMP7 to AMP8
Infrastructure revenue rose 11.3% to £902.5m, adjusted operating profit climbed 36.3% to £27.4m, and margin hit 3.0% (up 50 bps). The order book is £1,688m, up 9.2%, split between Highways (£617m) and Environment (£1,071m). Wins include places on the £59bn National Grid Framework, the £1.0bn NEPO Civil Engineering and Infrastructure Works Framework, the £66.5m Banwell Bypass, and Yorkshire Water’s new £850m AMP8 framework.
Quick jargon buster: AMP stands for Asset Management Plan periods in the water sector – multi-year investment cycles. The shift from AMP7 to AMP8 can temporarily flatten revenue, but the pipeline then rebuilds under the new programme.
Investments: lower fees this year, portfolio still earning
Investments revenue was £8.0m (down 45.6%), reflecting no financial close fees this year, leading to an adjusted operating loss of £0.4m. The PPP portfolio is valued at £38.6m on a 7.9% blended discount rate and generated £3.6m of interest income. At year-end the business was preferred bidder on further PRS schemes with gross development value of around £360m, though timing is not disclosed.
Accounting clean-up: prior year restatement and nmcn update
The group corrected how it combined contracts under IFRS 15, restating FY24 to reduce revenue and increase cost of sales, with a net £11.7m impact to FY24 statutory profit before tax. Management also reclassified £11.7m of losses on specific batches of contracts under an nmcn-acquired framework as an FY24 exceptional item. Importantly, FY24 adjusted PBT was unchanged, there are no exceptional items in FY25, and this correction was non-cash. In short: tidier accounting, no effect on the current year’s adjusted performance.
What I like in these results
- Early delivery of the 3.0% divisional adjusted operating margin target, with a clear path to 4.0% by 2030.
- High-quality, framework-heavy order book of £4.1bn, with 92% of FY26 and 75% of FY27 revenue already secured.
- Strong cash generation and a debt-free balance sheet, supporting both dividends and buybacks.
- Consistent improvements in safety and ESG credentials, including the London Stock Exchange Green Economy Mark.
What to watch
- Revenue growth: management flags a near-term flattening as the water cycle pivots to AMP8. The offset should come from highways and broader public sector demand, but it’s a watch item.
- Rectification provisions: total provisions are £48.6m, including £13.1m for one infrastructure scheme with a long warranty tail. Management’s estimated range is £7.3m to £19.2m, so execution and recoveries will be important.
- VAT timing: HMRC’s revised payment profile lowers the reported average cash metric in FY26 by c£18m. It does not change underlying cash generation, but it will affect that headline average cash number.
- PPP portfolio valuation: the discount rate rose to 7.9% (from 7.6%), trimming fair value. Rate movements can swing valuations, though the portfolio continues to throw off interest income.
Outlook: government-backed spend and margin progression
Galliford Try is positioned squarely in public and regulated markets where spending plans – water, highways, defence, custodial and education – underpin activity levels. The business model is deliberately disciplined: stick to frameworks, manage risk, and improve margin through quality delivery and digital efficiency. With trading slightly ahead of expectations, a robust order book and secured revenues well into FY27, management’s confidence reads as justified.
Net-net, this is a solid set of results with rising profitability, strong cash, a growing order book and meaningful cash returns to shareholders. Near-term revenue may pause for breath, but the margin story and visibility into AMP8 and other public sector programmes make this a constructive update for long-term holders.
