Renew Holdings Reports Record First Half Performance and Confident Outlook

Renew Holdings HY26 results: record first half backed by cash, order book growth and steady margins

Renew Holdings has put out a solid set of interim results for the six months to 31 March 2026. The headline is simple: this was a record first half, with revenue, adjusted operating profit, profit before tax and the interim dividend all moving higher.

What I like here is that this is not a story built on one flashy contract or a temporary spike. Renew is benefiting from long-term, largely non-discretionary spending across UK infrastructure – the sort of work that still needs doing whether the economy is booming or wobbling.

Key HY26 numbers	HY26	HY25	Change
Group revenue	£589.0 million	£569.3 million	+3.5%
Adjusted operating profit	£33.4 million	£32.0 million	+4.4%
Operating profit	£26.9 million	£26.1 million	+3.0%
Adjusted operating margin	5.7%	5.6%	+10bps
Profit before tax	£25.5 million	£23.5 million	+8.6%
Adjusted earnings per share	30.9p	28.2p	+9.6%
Interim dividend	7.0p	6.7p	+4.9%
Order book	£945.0 million	£908.0 million	+4.1%

Why Renew Holdings’ record order book and net cash swing matter

The standout balance sheet improvement is the move to a pre-IFRS 16 net cash position of £10.6 million, versus net debt of £11.8 million a year earlier. That is a meaningful swing, and it gives management room to keep backing growth and bolt-on acquisitions.

IFRS 16 is the accounting rule that brings lease liabilities onto the balance sheet. Renew prefers to highlight pre-IFRS 16 net cash because it strips out lease-related debt. On a full IFRS 16 basis, the group still had net debt of £21.6 million, so investors should keep both figures in mind.

The order book rose to a record £945.0 million. For a business like Renew, that matters because future revenue visibility is a big part of the investment case. These are long-term frameworks and regulated spending cycles, not feast-or-famine project work.

Renew’s infrastructure end markets are doing the heavy lifting

Operationally, the picture is encouraging. Rail remains a major market, and while renewals activity has been subdued as Network Rail prioritises reactive maintenance, Renew says it delivered record levels of emergency response maintenance and retained its position as Network Rail’s largest supplier of infrastructure services.

That is quite important. It shows the group’s diversified rail offering is helping it make money even when one slice of spending is softer than hoped.

Water looks especially strong. Renew said it entered the AMP8 control period in its strongest position yet and has seen record levels of activity in a number of regions. AMP8 is the latest five-year regulated investment cycle for the UK water sector, and the company pointed to an estimated £104 billion of investment committed, plus £45 billion assigned to new infrastructure.

Highways is also shaping up well. The publication of RIS3 – the Road Investment Strategy 3 – confirmed £27 billion over five years, including an estimated £8.4 billion for renewal works. That plays directly into Renew’s strengths in maintenance-heavy infrastructure.

Transmission and distribution is another growth engine. The Emerald Power deal has expanded Renew’s overhead line capabilities, and management says integration is going well and trading is in line with pre-acquisition expectations.

What is not perfect in the Renew Holdings half-year report

This was a strong update, but it was not spotless. The biggest weak point is the onshore wind business, Full Circle, where the French subsidiary has underperformed and is now undergoing a restructuring review.

That said, the wider renewables market backdrop still looks attractive, and Full Circle added 63 new MSA contracts in the period, taking the total to 747 turbines under contract. So this looks more like a business-specific issue in one geography rather than a collapse in demand.

Nuclear also had some friction. Ongoing industrial action at Sellafield continues to affect performance, although Renew still sounds confident because the site is backed by long-term frameworks and government-funded decommissioning spend.

There is also a drag from discontinued operations. The group booked a £0.9 million loss from discontinued operations due to increased provisions linked to Allenbuild’s known contractual claims. That helps explain why basic earnings per share fell to 22.8p from 31.07p, even though adjusted earnings per share rose strongly.

Adjusted profit versus statutory profit: what retail investors should understand

Renew, like many acquisitive engineering businesses, puts a lot of emphasis on adjusted numbers. Adjusted operating profit was £33.4 million, but statutory operating profit was lower at £26.9 million after £6.6 million of exceptional items and amortisation of intangible assets.

Those costs included acquisition-related items and amortisation from acquired intangibles. You do not want to ignore them completely, but I think it is reasonable to look at both views here. The adjusted numbers show underlying trading, while the statutory numbers remind you that acquisitions are not free.

Encouragingly, even the statutory figures moved in the right direction. Profit before tax rose 8.6% to £25.5 million, which is a healthy outcome.

Emerald Power, EDS and PWR-X show Renew is still buying carefully

Management is clearly not taking its foot off the acquisition pedal. Emerald Power was acquired in October 2025 for gross cash consideration of up to £11.3 million, with an initial cash payment of £6.8 million. Post period end, Envolve bought Edwards Diving Services for up to £13.0 million, and Excalon bought PWR-X for £1.1 million.

The common theme is capability expansion in attractive niches. EDS adds specialist marine and civil engineering services for water, while PWR-X adds high voltage cable jointing. Both sound sensible rather than speculative.

Management also says the M&A pipeline remains active and is supported by a strong balance sheet. That is positive, though investors should always watch execution risk when a company keeps acquiring smaller businesses.

Renew Holdings outlook for FY26: confidence looks justified

Renew says it has momentum and confidence as it moves through the second half, and based on this update that seems fair. Organic growth was 2.2% in the first half, with management expecting that to accelerate in H2.

The ingredients are there: a record order book, growing exposure to regulated spending, a better cash position and a business model spread across rail, water, highways, energy and communications. That diversification is doing a lot of work.

My take is that this is a good quality update rather than a dramatic one. Revenue growth of 3.5% is not explosive, and there are a few soft spots, but the consistency is impressive. In infrastructure services, boring can be beautiful if it comes with cash generation, pricing discipline and long-term visibility.

The increased interim dividend to 7.0p underlines that confidence. Overall, this RNS reads as another steady step forward for Renew Holdings – and for the full year, the company looks firmly on track based on what has been disclosed here.