Hercules (AIM:HERC) expects full-year revenue for FY26, the year ended 30 September, to exceed £130m, ahead of market expectations of £127m and up approximately 7.3% on the £121.2m reported in FY25.
The AIM-listed infrastructure and construction services group, which supplies labour, training and specialist power services to the UK construction and energy sectors, said underlying EBITDA and statutory pre-tax profit will also beat market forecasts, which stood at £4.1m and a £1.6m loss respectively.
Civil Projects is expected to deliver a record year, with revenue up approximately 25% on FY2025, driven by rising activity under the UK water sector's AMP8 investment programme, which is expected to channel around £104bn into the sector through to 2030.
Labour Supply, the Group's largest division, grew its client base by 10% year-on-year and maintained its position supplying operatives to the Birmingham section of HS2, while white-collar recruitment revenue rose approximately 35%.
The Power & Energy division, built around Advantage NRG following its acquisition last year, grew revenue by approximately 11% with operative numbers up 5.7%, while Lyons Power Services, acquired in May, lifted revenue by approximately 22% in its first year within the Group.
"FY26 has been another year of significant progress for Hercules, and I am delighted that we expect to deliver a financial performance ahead of market expectations across our key measures," said chief executive Brusk Korkmaz.
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Korkmaz said the focus going forward is "not simply on growing revenue, but on ensuring that this growth translates into stronger margins, improved cash generation and sustainable returns for our shareholders."
The company pointed to National Grid's £1.2bn programme to upgrade around 1,000km of overhead transmission lines across England and Wales, part of a wider £30bn of planned investment in the UK's electricity transmission network through to 2031.
Hercules said it will continue to pursue organic growth while evaluating selective acquisitions, alongside a priority on operational efficiency and cost discipline as major water, power and energy investment programmes move into their delivery phase.