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Record 2025 for Keller Group: dividend up 41.6% and £100m buyback planned, backed by robust cash generation and strong balance sheet.
This article covers information on Keller Group PLC.
LON:KLRKeller Group has delivered a record set of 2025 numbers and doubled down on shareholder returns. Revenue nudged up to £3,087.3m with margins holding firm, cash generation strong, and the dividend getting a 41.6% lift. Management also plans a further £100m share buyback in 2026. For a contractor, consistency like this is rare – and it is being backed by a strong order book and a robust balance sheet.
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue | £3,087.3m | £2,986.7m | +3.4% (+5.9% at constant currency) |
| Underlying operating profit | £218.2m | £212.6m | +2.6% |
| Underlying operating margin | 7.1% | 7.1% | Flat |
| Underlying profit before tax | £197.3m | £191.4m | +3.1% |
| Underlying diluted EPS | 211.3p | 199.9p | +5.7% |
| Free cash flow | £175.9m | £192.6m | -8.7% |
| Net (cash)/debt (IAS 17 basis) | £59.7m cash | £29.5m debt | First net cash in 25+ years |
| Total dividend | 70.4p | 49.7p | +41.6% |
| Order book | £1,541.7m | £1,610.0m | -4.2% |
| Return on capital employed | 30.7% | 28.2% | Highest in 17 years |
Despite a mixed market and a £7.8m FX translation headwind, Keller held margins at 7.1% and lifted profits. The engine room was broad-based: a sharp recovery in Europe and the Middle East (EME) after a prior-year project loss, strong growth in Austral and Keller Asia, and continued discipline in pricing and execution globally.
Safety also improved: the Accident Frequency Rate fell to 0.04 with 11 lost time injuries (2024: 0.05; 14), always a good sign of operational control.
Keller has reset its capital return playbook. The dividend policy is now targeted at a 2.5x-3.5x earnings cover, reflecting steadier cash generation. The 2025 final dividend is 52.1p, taking the year’s total to 70.4p, up 41.6%. Subject to approval, the final dividend is payable on 26 June 2026 to shareholders on the register at 29 May 2026.
On top, the Board intends to launch a further £100m share buyback during 2026, following two £25m tranches initiated in 2025. Up to 2 March 2026, £44m had been returned via the programme. With net cash of £59.7m on an IAS 17 basis and leverage at (0.2)x versus a target range of 0.5x-1.5x, Keller has room to keep rewarding holders.
Revenue rose to £1,815.7m, helped by data centre work and big-ticket infrastructure like New York’s Hudson Tunnel and I-40 in Tennessee. Profit eased to £166.2m and margin to 9.2% as Suncoast (post-tension products largely for residential) faced softer housing starts and prior-year pricing normalised. Even so, the order book remained strong at £1,022.3m, and Keller expects to keep outperforming a flat US market in 2026 (source: FMI).
Revenue grew to £873.4m and profit surged to £38.8m as the troublesome Middle East project from 2024 did not repeat and European operations tightened execution. The order book rose 14.2% to £356.0m, with activity anchored in public infrastructure, energy networks and clean energy projects.
Revenue climbed to £398.2m and profit to £30.6m, with a 7.7% margin. Austral performed strongly; Keller Asia benefited from renewables and semiconductor projects in India, while Australia saw softer trading after last year’s transport stimulus. The order book is £163.4m, down 5.4% after strong conversions, with a solid pipeline ahead.
Free cash flow of £175.9m comfortably funded capex of £90.3m, the dividend (£36.2m paid during the year) and £38.9m of buybacks. Statutory net debt on an IFRS 16 basis is £28.9m due to lease liabilities; excluding leases (the lender covenant or “IAS 17” basis), Keller sits in net cash of £59.7m. Headroom remains ample with the £400m revolving credit facility undrawn and total borrowing headroom of £447.1m.
The order book at year-end was £1,541.7m, with high tendering levels and good visibility into 2026. That gives management the confidence to raise distributions while investing in growth.
The new CEO has sharpened the growth strategy around relative market share (RMS) – winning in chosen local markets by applying Keller’s product breadth and engineering depth. Expect more of what already works: commercial discipline, selective bolt-ons, and targeting faster-growing segments like infrastructure, energy transition, data centres and climate resilience. ROCE at 30.7% shows the model is delivering.
Management flags macro uncertainty, but Keller starts 2026 with a strong balance sheet, a high-quality order book and embedded operational improvements. In the US, overall construction may be flat, but Keller plans to keep outpacing through infrastructure and technology-linked demand; EME benefits from public programmes; and APAC has a healthy pipeline, notably in Australia and India. The plan: further progress in 2026 and beyond.
Overall, this is a high-quality print: record profits, sturdy cash, and generous returns without over-gearing. If management continues to tilt the mix toward infrastructure, energy and technology-led demand, the setup for steady compounding looks intact.
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