Kier Group (LSE:KIE) on Thursday told investors that trading since the start of its financial year remains in line with expectations, as the London-listed infrastructure and construction group points to fresh contract wins that underpin growth into FY27 and beyond.
The order book stood at £11.7bn at the end of September, slightly down from £11.9bn at the end of June, though Kier said recent contract wins due to enter the order book in the current quarter should drive growth in the measure by December. That June figure marked an 8% rise on the prior year and covered more than 95% of forecast FY27 revenue, Kier reported at its full-year results in September.
Among the period's key awards, Kier was appointed by Babcock International Group, through the KierBAM joint venture, to deliver a £600m programme of works at Devonport Royal Dockyard's 10 Dock in Plymouth. It also secured a Pre-Construction Services Agreement for the new H50 high containment building at the UK Health Security Campus in Harlow, part of the wider £3.5bn programme to bring the UK Health Security Agency's specialist scientific facilities and headquarters onto a single site; Kier was appointed to that PCSA in October, with early works expected from 2028 and main construction starting in the fourth quarter of 2029.
Kier also secured roughly £100m of water contracts across Thames Water, Yorkshire Water and Severn Trent, and won a major contract to deliver the Sizewell Link Road through Sizewell C's Major Civils Framework.
New framework appointments add further bidding access across its markets, including the Pagabo national frameworks for civil engineering and major works (each worth up to £5bn in total advertised value), the £4.8bn Thames Water Major Projects Framework, the £3bn Constructing West Midlands 3 framework and the £400m NHS Shared Business Services HardFM3 framework.
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Chief executive Stuart Togwell said the group had made "a positive start to FY27, trading in line with our expectations", with strategic priorities focused on "converting opportunities in our targeted growth sectors into secured work, generating cash and delivering against the enhanced financial targets set out in September 2026".
On the balance sheet, Kier said consistently strong cash generation continues, with "excellent early progress" toward its target of more than £200m of average monthly net cash by the end of FY29, a target the Board set alongside its September full-year results. Kier ended FY26 with net cash of £232m, up 13.9% year-on-year, having reversed average net debt of £49.2m in FY25 to average net cash of £10.7m.