Kier targets top end of FY26 expectations as order book reaches £11.9bn

Kier's full-year update at a glance

Kier Group has ended its 2026 financial year with momentum intact. The infrastructure, construction and property group now expects FY26 revenue and profit to come in at the top end of market expectations.

The precise revenue, profit and margin figures were not disclosed, so investors will need to wait for the full-year results on 15 September 2026. Even so, the update contains several encouraging indicators: an expanding order book, substantial new contract awards and a stronger cash position.

Key measure	FY26 update	Comparison
Order book	Approximately £11.9bn	Up 8% from £11.0bn
FY27 revenue secured	Over 90%	Based on consensus revenue of £4.407bn
Average month-end cash	Approximately £11m	£49m average net debt in the prior year
Period-end net cash	Approximately £232m	Up around 14% from £204m
Infrastructure awards in H2	Approximately £1.5bn	Not disclosed
Construction awards in H2	Over £1.0bn	Not disclosed

Trading momentum continued into the second half

Kier said the strong trading momentum seen during the first half continued through the remainder of FY26. That has left management expecting both revenue and profit at the top end of market expectations.

This is a positive statement, although the absence of exact guidance limits how much investors can conclude about the scale of the improvement. Market expectations themselves were not quantified in the announcement.

Infrastructure benefited from continued strong growth in Water projects, alongside good momentum in Highways and Rail. Kier operates across design, construction and maintenance, giving it exposure to several stages of an infrastructure project's life.

Construction growth was supported by the ramp-up of significant projects, including HMP Glasgow. Kier also highlighted the growing use of its in-house mechanical and electrical capability, commonly shortened to M&E, across all regions.

Property activity increased compared with FY25. However, transaction timings were affected by wider macro-economic turbulence. That qualification matters because delayed property transactions can make earnings and cash generation less predictable from one reporting period to the next.

The order book offers strong revenue visibility

Kier's order book grew by 8% to approximately £11.9bn at 30 June 2026, up from £11.0bn a year earlier.

More than 90% of expected FY27 Group revenue is already secured. That percentage is based on consensus FY27 revenue of £4.407bn, as recorded by Bloomberg on 21 July 2026.

For investors, this visibility is important. A large order book reduces Kier's dependence on winning last-minute work to support the next financial year's revenue. It may also help with workforce planning, procurement and the allocation of capital across projects.

However, an order book is not the same as recognised revenue or profit. Projects must still be delivered effectively, and contract economics remain crucial. Kier did not disclose expected margins, changes in project profitability or detailed order book risk in this update.

New awards span infrastructure and construction

Kier reported approximately £1.5bn of new Infrastructure business during the second half, covering Nuclear, Water and Environment.

Notable awards included:

• Sizewell C's North Plaza, the main entrance to the £38bn nuclear power station.
• A place within the ILIOS consortium for the first £200m tranche of the STEP fusion programme, which is valued at £10bn in total.
• A two-year, approximately £140m extension to South West Water's Network Services Alliance framework.
• An approximately £100m Construction Continuation Contract for the Bridgwater Tidal Barrier Scheme, awarded for the Environment Agency.

Construction secured more than £1.0bn of new business during the second half. This covered Education, Justice, Healthcare and Defence clients in both the public and private sectors.

The awards included more than £300m of Education work and an approximately £60m fire safety improvement programme at HMP Wandsworth. Kier also secured healthcare work at the Princess Alexandra eye hospital in Edinburgh and Chapel Allerton in Leeds, although contract values for those projects were not disclosed.

These wins sit alongside positions on major frameworks, including the £37bn Hospital 2.0 Alliance and the £15bn Education Construction Framework 2025. Kier said its framework positions total approximately £150bn.

That £150bn figure should be read carefully. Framework membership gives Kier the opportunity to compete for work, but it does not mean the full amount will become Kier revenue.

Cash performance is another encouraging feature

Kier expects average month-end cash of approximately £11m for FY26. This compares with average net debt of £49m in the prior year.

Average cash is a useful measure because a single year-end balance can be influenced by the timing of customer payments, supplier payments and other working-capital movements. Moving from average net debt to average net cash therefore suggests a broader improvement than the period-end figure alone.

Period-end net cash is expected to reach approximately £232m, around 14% higher than the previous year's £204m.

Management attributed the improvement to continued focus on operational delivery and cash management. The update did not provide a full cash flow breakdown, so investors cannot yet assess the precise contributions from underlying operations, working capital and other movements.

What looks positive for Kier investors

Several parts of the announcement stand out positively:

• Revenue and profit are expected at the top end of market expectations.
• The order book increased by 8% to approximately £11.9bn.
• More than 90% of FY27 revenue is already secured.
• New business was strong across Water, Nuclear, Environment, Education, Justice and Healthcare.
• Average month-end cash improved from £49m of net debt to approximately £11m of net cash.
• Period-end net cash is expected to increase to approximately £232m.

The breadth of the awards is also helpful. Kier is not relying on a single project or end market for all of its growth, although public infrastructure spending remains an important driver.

Risks and unanswered questions

The update is upbeat, but it is not a full set of results. Revenue, adjusted operating profit, margins, free cash flow and shareholder returns were not disclosed.

Execution remains central. Large infrastructure and construction contracts can involve cost pressures, delays and working-capital demands. The announcement did not report any specific project issues, but the size of the order book means disciplined delivery will remain important.

Property transaction timings have already been affected by macro-economic turbulence. Framework values should also not be confused with guaranteed contracts or revenue.

Finally, Kier's reference to government infrastructure investment supports the growth case, but the timing and conversion of opportunities into awarded, profitable work will matter more than headline programme values.

What to watch at the September results

Kier's FY26 results on 15 September 2026 should provide the missing financial detail, including the actual revenue and profit outcome, margins and cash flow performance.

Management also plans to update investors on strategic priorities intended to enhance shareholder returns over the medium term. No specific return targets or new capital allocation commitments were disclosed in this trading update.

For now, Kier appears to be entering FY27 with a larger order book, high revenue visibility and an improved cash position. The next test is whether that strong operational platform translates into attractive margins, dependable cash generation and clearly defined shareholder returns.