Galliford Try expects top-end profit as cash and order book grow

Galliford Try Holdings has delivered a reassuring full-year trading update, with revenue, profit and cash all expected to grow for a sixth consecutive year.

The UK construction group expects adjusted profit before tax to land at the top end of analysts' forecasts, while its order book has increased to £4.3 billion. A strong balance sheet remains another key feature, with £258.8 million of year-end cash and no bank debt.

The audited results for the year ended 30 June 2026 are due on 17 September 2026. Until then, investors do not have the exact profit or margin figures, but the direction of travel looks positive.

The key numbers

Measure	2026 update	Previous year or comparison
Revenue growth	Circa 3%	Exact revenue not disclosed
Adjusted profit before tax	Top end of forecasts	Forecast range of £51.4 million to £53.4 million
Average month-end cash	£216.2 million	£178.7 million
Growth in average month-end cash	21.0%	Year on year
Year-end cash	£258.8 million	£237.6 million
PPP asset portfolio	Circa £37.2 million	£38.6 million
Bank debt	None	Revolving credit facility undrawn
Order book	£4.3 billion	£4.1 billion
New financial year revenue secured	Circa 90%	Not disclosed for the prior year
Share buyback completed	£10 million	1,957,703 shares cancelled
Dividends during the year	Circa £20.3 million	In line with dividend policy

Adjusted profit before tax strips out items management considers non-underlying, giving investors a view of operational performance. However, the final statutory and adjusted numbers will only be confirmed with September's audited results.

Profit is heading towards the top of expectations

The headline is that Galliford Try expects adjusted profit before tax at the top end of the £51.4 million to £53.4 million analyst forecast range compiled by the group on 1 July 2026.

That suggests a result close to the upper boundary, although the company has not provided a precise figure. The performance was supported by commercial discipline and what management described as quality project execution across both Building and Infrastructure.

Revenue is expected to have grown by around 3%. That is not explosive growth, but the more important point is that profit and margins are also progressing. In construction, additional revenue is much less useful if weak contract selection or delivery problems erode profitability.

Galliford Try expects another year of margin improvement as it works towards its 2030 operating margin target of 4.0%. The expected 2026 margin was not disclosed, so investors will need to wait until September to judge the size of the step forward.

Cash remains a major strength

Average month-end cash rose by 21.0% to £216.2 million, compared with £178.7 million in the previous year. This is arguably more informative than a single year-end balance because it shows that cash remained strong across the reporting period rather than only on 30 June.

Year-end cash increased to £258.8 million from £237.6 million. Galliford Try also held a circa £37.2 million portfolio of marketable Public Private Partnership assets. PPP assets are investments connected with long-term public infrastructure arrangements that can potentially be sold.

The group reported no pension liabilities and no bank debt. Its revolving credit facility, which is a flexible borrowing facility available if required, has remained undrawn since it was put in place.

This financial position gives the business room to invest, make acquisitions and return capital to shareholders. Management also believes balance sheet strength helps the group secure contracts, work with skilled supply chains and attract and retain employees.

Buybacks, dividends and acquisition spending

Galliford Try completed its third share buyback programme during the second half. It purchased and cancelled 1,957,703 ordinary shares at an average price of approximately £5.11 each, costing £10 million.

Cancelling shares reduces the number in issue, meaning each remaining share represents a slightly larger proportion of the company, although the benefit ultimately depends on the price paid and future business performance.

The group said operating profits funded £38.4 million of capital allocations through the activities described in the update, alongside circa £20.3 million of dividends. Its progressive dividend policy targets 1.8 times cover, meaning profit is intended to be around 1.8 times the dividend payment.

Galliford Try also completed the acquisition of Nene Valley Fire and Acoustic Limited in February 2026. The business expands the group's capabilities in passive fire prevention, which involves building features designed to contain fire and smoke without needing activation.

Integration is said to be progressing well, with trading ahead of the pre-acquisition investment case. The acquisition price and its profit contribution were not disclosed.

The order book supports the outlook

The order book grew from £4.1 billion to £4.3 billion, giving Galliford Try visibility over its future workload. Around 90% of revenue for the new financial year was already secured at 30 June 2026.

Recent awards include a £26 million affordable housing scheme for Clarion Housing, places on major education, construction and affordable homes frameworks, three schools worth a combined £139 million, and a £60 million munitions handling facility at RAF Lakenheath.

The group operates predominantly through frameworks in public and regulated sectors. Management sees opportunities across water, transportation, energy infrastructure, education, defence, custodial facilities, health and affordable housing.

A large order book is encouraging, but it is not the same as booked profit. The quality of contracts, delivery standards and commercial discipline will determine how effectively that workload turns into revenue, margin and cash.

What investors should watch next

The update contains several clear positives: profit is expected near the top of forecasts, margins are moving in the right direction, cash has grown and the order book provides substantial revenue visibility.

The main unanswered question is the exact pace of margin improvement. With a 4.0% target set for 2030, September's results should show how far the business still has to travel. Investors should also look for the precise adjusted profit figure, cash conversion, dividend decision and further detail on the Nene Valley acquisition.

For now, Galliford Try appears to be balancing growth, financial discipline and shareholder returns effectively. The full-year results will need to confirm that the strong headline performance is supported by underlying margins and continued high-quality execution.