Keller Group (LSE:KLR) said on Thursday that it remains on track to deliver record volumes and significant year-on-year revenue and profit growth for 2026, in line with market expectations that were materially upgraded following a strong first half.
The London-listed geotechnical and foundations specialist, the world's largest in its field, said performance in the period to 31 October continued to be driven by infrastructure and commercial projects in North America, mining-related activity at its Austral Australian civils business, and strong demand across the Nordics. These strengths more than offset continued weakness in the US residential market, deferred environmental remediation work at Moretrench, and weakness in the UK business.
The order book stands at a record approximately £2.5bn, up from the £1.9bn reported at the half-year results in August, underpinned by the multi-year I-40 highway remediation project in the US, which the group says provides increased revenue visibility over the next three to four years.
Keller expects continued strong free cash flow generation in 2026, weighted towards the second half as usual, with year-end net debt or cash expected to be broadly neutral, subject to normal working capital movements.
Leverage is expected to remain well below the group's target range of 0.5x to 1.5x net debt to EBITDA; net debt stood at £15.9m, with leverage of 0.1x, at the half-year stage.
The £100m share buyback programme launched on 30 March is well progressed, with approximately £80m of shares repurchased as at 31 October, up from the £35m bought back by the time of the half-year results.
Chief executive James Wroath said 2026 is on track to be Keller's fourth consecutive record year, reflecting "sustained excellent operational performance, the strength of our diversified portfolio and supportive end markets".
Read more about Keller
- 04/08/26Keller lifts profit 17% as North America drives record first half
- 07/07/26Keller Group upgrades full-year profit outlook as North America delivers record volumes
- 09/06/26Keller wins $207m variation on US I-40 reconstruction, lifts order book to £1.9bn
"With a c.£2.5bn order book, healthy free cash flow generation and a strong balance sheet, we are set to enter 2027 with good visibility and momentum," he said.
At its recent Capital Markets Day, Keller set new medium-term targets: organic revenue growth of 5-7% a year, a group operating profit margin of approximately 7%, return on capital employed above 30%, total free cash flow of approximately £800m between 2026 and 2030, and a progressive dividend policy with cover of 2.5 to 3.5 times.
The group said it continues to evaluate selective bolt-on acquisition opportunities to accelerate growth, alongside its disciplined capital allocation framework prioritising investment and dividends.
Keller will announce its full-year 2026 results on 18 March 2027.