Kier Group (LSE:KIE), the UK infrastructure and construction group, said it now expects FY27 earnings to be at the top end of the board's previous expectations, citing strong order book growth and recent contract wins.
Revenue rose 7.5% to over £4.39bn in the year ended 30 June, up from £4.09bn in FY25. Adjusted operating profit grew 6.7% to £169.8m, with the adjusted operating margin held at 3.9%.
The group reached an average net cash position of £10.7m for FY26, a marked turnaround from average net debt of £49.2m in FY25.
Year-end net cash rose 13.9% to £232m, while operating free cash flow reached £206m, representing 121% cash conversion against a 90% medium-term target.
"We continued to bolster the group's financial profile, reaching an average net cash position for the first time in over a decade, a significant milestone from which to build," said Stuart Togwell, Chief Executive.
The order book grew 8% to a record £11.9bn, securing more than 95% of forecast FY27 revenue and over 70% of FY28 revenue.
Framework positions rose to approximately £200bn from £150bn in FY25.
The board proposed a full-year dividend of 7.8p, up 8%, with earnings cover of 3x, and has completed over 30% of a £25m share buyback launched in March 2026.
From FY27, Kier will stop new Property investment, reallocating capital toward its updated medium-term targets, including average net cash above £200m by FY29 and double-digit adjusted EPS growth.
Trading in the two months since year-end has been in line with the Board's expectations.
News Intelligence what this means for the company
Kier lifted FY27 earnings guidance to the top end of prior expectations on the back of 7.5% revenue growth to £4.39bn and a record £11.9bn order book covering 95% of FY27 forecast revenue. The company achieved a watershed moment: swinging to average net cash of £10.7m in FY26, reversing average net debt of £49.2m a year earlier, and year-end net cash of £232m—a turnaround that signals both operational discipline and reduced financial risk after years of balance-sheet strain.
- From FY27, Kier will exit new Property investment and redirect capital toward average net cash above £200m by FY29, signalling a strategic pivot away from lower-margin or capital-intensive segments toward infrastructure and construction where the order book is strongest.
- The order book's 8% growth to a record £11.9bn, with over 70% of FY28 revenue already secured, provides revenue visibility and reduces execution risk in the near term, though delivery risk on large, long-duration public infrastructure programmes remains material.
The combination of record order book, positive earnings revision, and first average net cash position in over a decade materially strengthens Kier's financial flexibility and de-risks near-term earnings. The shift away from Property investment and toward infrastructure services aligns capital allocation with the company's core strength in public-sector contracts, though the medium-term target of average net cash above £200m by FY29 implies the company still expects to deploy cash into growth or shareholder returns.
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