Galliford Try’s half-year to 31 December 2025: revenue up, margins higher, guidance raised
Galliford Try has delivered another tidy set of numbers and, crucially, raised guidance. Management now expects full-year revenue and adjusted profit before tax to be above the top end of market expectations. For reference, the company-compiled analyst range for FY26 was revenue of £1,912m to £1,922m and adjusted profit before tax of £48.9m to £51.4m.
Performance was broad based across Building and Infrastructure, margins stepped up again, the order book grew, and cash remains strong. Add a bolt-on acquisition in a higher-margin niche and the story is one of controlled, profitable growth.
Key numbers you need to know
| Metric | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Revenue | £934.9m | £923.2m | +1.3% |
| Adjusted operating profit | £21.6m | £17.7m | +22.0% |
| Divisional adjusted operating margin (Building + Infrastructure) | 3.2% | 2.7% | +54bps |
| Adjusted profit before tax | £24.7m | £20.5m | +20.5% |
| Adjusted basic EPS | 18.6p | 15.7p | +18.5% |
| Interim dividend | 6.5p per share | 5.5p per share | +18.2% |
| 12‑month average month end cash | £189.9m | £176.4m | +7.7% |
| Net cash at 31 Dec | £211.7m | £210.0m | +0.8% |
| Order book | £4.1bn | £3.9bn | +5.1% |
The interim dividend of 6.5p will be paid on 10 April 2026 to shareholders on the register on 13 March 2026. Shares go ex-dividend on 12 March 2026.
Where the growth came from
Building: stronger margins and framework wins
Building revenue rose 2.0% to £476.5m with adjusted operating profit up 19.2% to £14.9m, lifting margin to 3.1% from 2.7%. That is the quality-through-discipline strategy doing what it says on the tin. The order book stands at £2.4bn, with a healthy sector mix: 49% Defence and Custodial, 19% Education, 14% Facilities Management and 4% Health.
Notable wins include places on the £15.4bn Department for Education CF25 framework and a £3bn affordable homes framework for The Hyde Group across the East, South and London regions. Frameworks provide repeatable, lower-risk work on known terms – a quiet engine of consistency.
Infrastructure: margins step up despite AMP8 transition
Infrastructure delivered revenue of £454.2m and adjusted operating profit of £15.2m, taking margin to 3.3% from 2.7%. The business balanced the AMP8 water transition with improved commercial terms and solid highways execution. The order book is £1.7bn, comprising £547m in Highways and £1,167m in Environment.
Fresh opportunities were secured on National Grid’s £9.0bn HVDC Major Works & Civils Framework (Lot 1 – Converter Civils & Buildings) and reappointment to the £1.0bn YORCivil Major Works 2 Framework.
Balance sheet, cash and returns to shareholders
Galliford Try continues to run with daily net cash, no drawn bank debt and no defined benefit pension liabilities. Period-end net cash was £211.7m and the 12‑month average month end cash was £189.9m. There is also an undrawn £25m revolving credit facility for additional resilience.
The group owns PPP assets valued at £38.5m, generating interest income and supporting the balance sheet. Operating cash flow was positive at £7.8m in the half.
On buybacks, the third programme of up to £10.0m is close to completion, with 1,765,102 shares purchased for £9.0m by 27 February 2026. The dividend policy targets 1.8x earnings cover, and the 18.2% uplift in the interim payout tracks EPS growth.
Acquisition of Nene Valley Fire & Acoustic: a higher-margin bolt-on
On 27 February 2026, Galliford Try acquired Nene Valley Fire & Acoustic Limited for circa £10m in cash. It is expected to be margin accretive in year one and will be combined with Asset Intelligence and Oak Fire Protection to accelerate national growth in passive fire protection – a structurally attractive, regulation-driven niche.
This follows a string of targeted deals since 2021, including nmcn’s water business (with Lintott), MCS Control Systems, Ham Baker and AVRS Systems. Those earlier acquisitions helped build critical mass in Environment, which is now expected to deliver £500m – £600m of annual revenues over 2027 – 2030. Alongside the new Keighley pipe fabrication facility, management is clearly leaning into higher-margin adjacencies where it can scale technical capability.
Order book quality and multi-year visibility
The order book rose to £4.1bn and remains 95% public and regulated sector. Impressively, 98% of FY26 revenue is already secured and 80% for FY27. About 87% of contracts are delivered through frameworks and 94% of the order book is repeat business. That combination reduces bid risk and supports steadier margins.
Why the guidance upgrade matters
Management now expects FY26 revenue and adjusted profit before tax to be above the top end of current market expectations. Using the company-compiled range, that implies revenue ahead of £1,922m and adjusted PBT above £51.4m. Combined with steadily improving divisional margins toward the 4.0% 2030 target, the investment case is shifting from recovery to compounding.
What to watch: the balanced view
- Defect warranty exposure: the group carries a £13.1m provision on a single long-dated infrastructure warranty within a wider £52.5m rectification and onerous contract pool. Estimates carry uncertainty, although management has sought external input.
- Safety metrics: Lost Time Frequency Rate rose to 0.13 and AFR to 0.05. Management is reinforcing training and standards.
- Investments segment: adjusted operating loss of £1.1m in H1, partly offset by £1.8m of interest income from PPP assets.
- Tax rate: an effective rate of 25.1% is guided for FY26, slightly above the 25.0% corporation tax rate.
My take for investors
This is a confident update from Galliford Try. Margins are trending up, cash is robust, frameworks are delivering the right kind of work, and the order book offers enviable revenue visibility. The bolt-on in passive fire protection should nudge mix toward higher-margin activity without stretching the balance sheet.
Risks around rectification and the usual project-delivery variables remain part of life in construction, but the group’s disciplined contract selection, strong public-sector exposure and cash-backed balance sheet provide a solid buffer. With guidance raised above the top end of expectations and dividends growing in line with earnings, the momentum into H2 looks well supported.
