Kier Group (LON:KIE) Announces Quarterly Earnings Results

Kier Group (LON:KIE) released its earnings results on Tuesday. The company reported GBX 23.50 earnings per share for the quarter, Digital Look Earnings reports. Kier Group had a net margin of 1.42% and a return on equity of 11.95%.

Here are the key takeaways from Kier Group’s conference call:

• Positive Sentiment: Kier reported FY2026 revenue growth of 7.5% to £4.4 billion and adjusted operating profit growth of 6.7% to £170 million, while its order book reached a record £11.9 billion.
• Positive Sentiment: Cash generation and the balance sheet improved materially, with £165 million of free cash flow, a first full-year average net cash position since 2012, and a target of more than £200 million of average net cash by FY2029.
• Positive Sentiment: Management introduced medium-term targets of mid-single-digit annual revenue growth, a 4%-4.5% adjusted operating margin, and double-digit EPS CAGR, supported by growth opportunities in water, energy, defense, and healthcare.
• Positive Sentiment: Kier will stop investing in new property developments and expects to release approximately £150 million from the existing portfolio over the next three years, allowing capital to be redirected toward the balance sheet, acquisitions, and shareholder returns.
• Neutral Sentiment: Management said FY2027 adjusted EPS should be at the top end of prior expectations, but acknowledged exposure to supply-chain and macroeconomic pressures; it expects cash conversion to normalize from FY2026’s unusually strong 121% while maintaining a target above 90%.

Kier Group Trading Up 2.4%

Shares of KIE stock opened at GBX 293.99 on Thursday. The firm has a 50 day moving average price of GBX 245.83 and a two-hundred day moving average price of GBX 221.73. The company has a quick ratio of 0.69, a current ratio of 0.90 and a debt-to-equity ratio of 360.81. The company has a market capitalization of £1.27 billion, a PE ratio of 22.44, a price-to-earnings-growth ratio of 0.29 and a beta of 0.89. Kier Group has a 12-month low of GBX 186.80 and a 12-month high of GBX 295.40.

Key Kier Group News

Here are the key news stories impacting Kier Group this week:

• Positive Sentiment: FY26 revenue increased 7.5% to approximately £4.39 billion, while profit also rose. Kier said it entered the new financial year with “strong foundations” and updated its medium-term financial goals. Kier Group FY26 revenue and order book article
• Positive Sentiment: The order book reached a record £11.9 billion, providing improved revenue visibility and supporting confidence in future growth. Kier Group earnings call highlights
• Positive Sentiment: Management highlighted cash strength on its earnings call, an important factor for a highly leveraged construction and infrastructure business. The company reported quarterly earnings per share of 23.50 pence, a 1.47% net margin and 11.69% return on equity. Kier Group financial update
• Positive Sentiment: Deutsche Bank raised its price target from 295p to 330p and retained a “buy” rating, suggesting additional upside based on the improved earnings and order-book outlook.
• Neutral Sentiment: Kier has paused or dropped its property investment plans to preserve strategic flexibility and maximize its options. This may reduce near-term diversification, but could also limit capital requirements and execution risk. Kier drops property investment article

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Berenberg Bank restated a “buy” rating and issued a GBX 260 price objective on shares of Kier Group in a research note on Wednesday, July 22nd. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Kier Group from GBX 295 to GBX 330 and gave the stock a “buy” rating in a research report on Tuesday. Four analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of GBX 272.50.

Kier Group Company Profile

Kier Group is a leading infrastructure services, construction and property group based in the UK.

Our purpose is to sustainably deliver infrastructure which is vital to the UK with a vision is to be the UK’s leading infrastructure services and construction company.

We operate through three segments; Infrastructure Services, Construction and Property. Infrastructure Services comprises our Transportation and Natural Resources, Nuclear and Networks business. Transportation: builds and maintains roads for National Highways and a number of district and county councils as well as our rail, airports’ infrastructure and ports’ businesses.

Natural Resources, Nuclear and Networks: delivers long-term contracts providing repairs, maintains and support capital projects to the water, energy, and telecommunications sectors.

Construction — comprises of our Regional Building, Strategic Projects, Kier Places (Housing Maintenance and Facilities Management), and International businesses.