Annual financial statement
Page 1
RNS Number : 7129UKier Group PLC15 September 2026
Page 2
15 September 2026 Results for the year ended 30 June 2026 Strong YoY performance. Focus on growth and capital allocation. FY27 expectations increased. Kier Group plc (“Kier”, the ”Company” or the ”Group”), a leading UK infrastructure and construction group, announcesits results for the year ended 30 June 2026 (“FY26” or the ”year”) and provides an update on its strategic priorities andmedium-term financial targets. Commenting, Stuart Togwell, Chief Executive, said: “I am pleased to report that Kier has delivered another year of strong performance, achieving excellent revenueand profit growth. We continued to bolster the Group’s financial profile, reaching an average net cash position forthe first time in over a decade, a significant milestone from which to build. During my first year as ChiefExecutive, we have taken important steps to strengthen and simplify the business, enhance the capability of ourleadership team and align the Group even more closely with the significant growth opportunities ahead. I havealso been particularly encouraged by further improvements in employee engagement and customer satisfaction,which reflect the strength of our culture and provide a strong foundation for future success. We are building a stronger, more focused Kier, concentrating our expertise, resources and talent where we cancreate the greatest value for customers, shareholders, communities and colleagues. We enter FY27 with strongfoundations and clear strategic priorities, to make the most of the sizeable opportunity in front of us. In particular,we bring good momentum into the new financial year, with recent significant contract and framework awards,strong order book growth and an expanding pipeline. This gives us confidence, looking at FY27, that earnings willbe at the top end of the Board’s prior expectations. Reflecting this confidence, we have updated our medium-termfinancial targets to underline our ambition and the value creation opportunity at hand for our shareholders.” FY26 Highlights Strong growth in revenue and adjusted operating profit, with average net cash position achieved acrossFY26: Year-on-year revenue growth of 7.5% delivered at an adjusted operating margin of 3.9% (FY25:3.9%) Growth in adjusted operating profit of 6.7% to £169.8m (FY25: £159.1m) Operating free cash flow grew to £206m (FY25: £199m) representing 121% cash conversion,significantly above the Group’s medium-term target of 90% Strong balance sheet with year-end net cash at £232m, representing a 13.9% increase year-on-year (FY25: £204m) £10.7m of average net cash1 for FY26, materially improved versus average net debt of £(49.2)min FY25 Proposed full year dividend increased by 8% to 7.8p, representing earnings cover of 3x £25m share buyback announced in March 2026 (over 30% complete at 30 June 2026) 1Average month-end net cash, an alternative performance measure. Record order book of high-quality work and excellent forward visibility: Order book grew 8% to £11.9bn as at 30 June 2026 (June 2025: £11.0bn, December 2025: £11.6bn)providing good visibility over future revenues, earnings and cash flows >95% of expected FY27 revenue and >70% of FY28 revenue secured1 Momentum from significant wins continuing into FY27: Hinchingbrooke (New Hospitals Programme),East/West Rail, Greater Manchester stations Extensive framework positions across diverse sectors: Increased framework positions to c.£200bn (FY25: c.£150bn) through wins and renewals acrosshealthcare, water, defence, energy, education, transportation and regional construction Framework win/renewal success rate over 80%2 These positions underpin the Group's commercial mix, with c.95% of revenues under a combinationof either cost reimbursable or two-stage processes3 Strategic Priorities & Updated Medium-Term Targets The divisional structure has been simplified and new senior appointments have further strengthened the managementteam, providing a strong platform for sustainable growth. To guide this next phase of Kier’s development, an in depthreview, involving key stakeholders, has identified three strategic priorities: Growth: focus on core businesses, Infrastructure and Construction, with end marketsunderpinned by long term structural growth trends Resilience: further strengthen the balance sheet, targeting >£200m of average net cash byFY29, giving enhanced capital allocation optionality, including bond repayment (due FY29) Performance: enhance quality of earnings, targeting double-digit adjusted EPS growth In line with these strategic priorities, from FY27 there will be no investment in new Property developments, with capitalre-allocated to enhance the Group’s balance sheet strength. This process will be managed in a controlled way tobalance timing and value, with capital to be realised in line with existing development schedules. The medium-term financial targets have been updated (reflecting the above strategic priorities): Revenue: mid-single digit growthAdjusted operating margin: 4.0-4.5%Operating cashflow conversion: >90%Dividend cover: c.3xBalance sheet: average net cash of >£200m, by FY29Adjusted EPS: double-digit growth 1Order book cover based on FY27 and FY28 consensus revenue as at 14 September 20262Infrastructure and Regional Construction businesses3 Cost reimbursable includes Target-Cost and Cost-Plus contracts Financial Highlights (£m unless otherwise stated) Year to 30 June2026 Year to 30 June2025 Change
Page 3
Adjusted results Revenue1 4,393.0 4,087.8 7.5%Adjusted operating profit2 169.8 159.1 6.7%Adjusted operating margin 3.9% 3.9% -Adjusted profit before tax3 136.4 125.4 8.8%Adjusted basic earnings per share (note 9) 23.5p 21.6p 8.8%Net cash4 232.4 204.1 13.9%Average net cash / (debt) 5 10.7 (49.2) Statutory reported Group revenue 4,352.5 4,077.1 6.8%Operating profit 118.7 113.7 4.4%Profit before tax 83.8 78.1 7.3%Basic earnings per share (note 9) 14.1p 12.8p 10.2%Full year dividend per share (note 8) 7.8p 7.2p 8.3% 1Revenue of the Group and its share of revenue from joint ventures.2Stated before adjusting items of £32.1m (FY25: £23.8m) and amortisation of acquired intangible assets of £19.0m (FY25: £21.6m).3Stated before adjusting items of £33.6m (FY25: £25.7m) and amortisation of acquired intangible assets of £19.0m (FY25: £21.6m).4Disclosed net of the effect of hedging instruments and excludes leases – see note 13 to the condensed consolidated financial statements.5Average month-end net cash, an alternative performance measure. FY26 Results Presentation Kier Group plc will host a presentation for analysts and investors at 10:00am (BST) on Tuesday 15 September2026 at the offices of Deutsche Bank AG, 21 Moorfields, London, EC2Y 9DB. Analysts unable to attend in person will be able to join the webcast using the details below: Webcast:https://www.investis-live.com/kier/6a884e821263ca001bf7b11b/pvem United Kingdom (Local): +44 20 3936 2999, United Kingdom (Toll-Free): +44 808 189 0158Conference password: 316410. An audio recording will be available on our website in due course. Online Retail Investor PresentationStuart Togwell, Chief Executive Officer, and Tom Hinton, Chief Financial Officer, will be hosting a live online retailinvestor presentation at 14:00pm (BST) on Friday, 25 September 2026. To attend, please register via thefollowing link: Webinar Registration – Kier Group investor presentation. Further Information:Kier Group plc Investor Relations +44 (0) 7434 505 871Kier Press office +44 (0) 1767 355 096 FTI Consulting +44 (0) 20 3727 1340Richard Mountain About Kier Kier is a leading UK infrastructure and construction group. Our purpose is to create lasting value through essential infrastructure, and we are committed to leaving lastinglegacies through our work. We create value through our uniquely combined differentiators, including: our leading framework positions acrossdiverse sectors, our approach which combines national scale with local delivery and our end-to-end capability acrossthe project lifecycle. Combining deep sector expertise, trusted relationships, digital capability and a culture of safety, collaboration andcontinuous improvement, we help customers achieve better outcomes while creating sustainable long-termvalue. You can find out more about Kier on our website. Financial Summary The Group delivered a strong operational performance in the year, with good momentum across the Infrastructureand Construction businesses driving growth in revenue, profit and cash flow. Revenue grew 7.5%, to over £4.39bn (FY25: £4.09bn) reflecting significant momentum in the Group’s coreInfrastructure and Construction divisions. Adjusted operating profit of £169.8m represents a 6.7% increase on theprior year (FY25: £159.1m) with the adjusted operating profit margin maintained at an industry top tier level of 3.9%(FY25: 3.9%). Reported operating profit increased to £118.7m (FY25: £113.7m). Underpinned by strong cash conversion, the Group achieved an average net cash position for the full year, closingFY26 with £10.7m of average net cash (FY25: £(49.2)m net debt). This financial milestone reflects the focus onoperational delivery and cash management throughout the business and further reinforces the Group’s disciplinedapproach to capital allocation, balancing growth, resilience and shareholder returns. In October 2025, the Group completed the refinancing of its existing £150m Revolving Credit Facility (RCF), witha new £190m RCF, for an initial committed three year term, with options to extend for a further two years, to October2030. This facility provides flexibility within the Group’s capital structure enabling it to optimise future financing asmarket conditions evolve. Record order book, with strong operational delivery The Group’s order book grew 8% to a record £11.9bn at the year end, securing >95% of forecast FY27 revenues.This growth reflects customers’ continued endorsement of the Group’s differentiated and market leading offering withinits chosen sectors, together with its ability to pivot to new areas, in line with evolving market opportunities. Activity levels for the Group were particularly high in water, supported by Kier’s in-house design management, whichenables early-stage customer engagement and integrated solution delivery. This momentum was supported by keyframework positions across the justice & borders, education, healthcare and defence sectors, combined with a strong,well established footprint in the London private sector commercial market. Strategy and growth drivers Following an in-depth review, the Group has identified three strategic priorities: Growth: focus on core businesses, Infrastructure and Construction, with end markets underpinned by long termstructural growth trends Resilience: further strengthen the balance sheet, targeting >£200m of average net cash by FY29, giving enhancedcapital allocation optionality, including bond repayment (due FY29) Performance: enhance quality of earnings, targeting double-digit adjusted EPS growth These priorities support the Group’s fundamental purpose: to deliver vital economic and social infrastructure acrossthe UK, by: Working with the UK Government, regulated industries and private sector customers Operating through long-term national and local frameworks (totalling c.£200bn*) *awarded positions by advertised value
Page 4
Kier’s core businesses are well aligned to the Government and regulated industry spending commitments toinvest in UK infrastructure, with these core markets remaining resilient throughout past political and economicuncertainties. The Group is a ‘strategic supplier’ to the UK Government and c.90% of contract revenues are withthe public sector and regulated companies. UK infrastructure spending is driven by structural trends, which provide tailwinds for Kier’s chosen markets: populationgrowth, transportation pressures, aging infrastructure, energy and national security, and climate change are allsignificant drivers of growth for the Group. In particular, the sectors of water, energy, defence and healthcare areexpected to contribute significant revenue growth over the next three years for Kier, secured through the Group’sproven industry expertise and underpinned by an expanding opportunity of future work that extends up to 15 years. Property The rationale underpinning the decision to reallocate capital from Property is four-fold and aligned to the Group’sstrategic priorities: It allows Kier to focus on its core Infrastructure and Construction businessesIt further strengthens the balance sheet, building the Group’s average net cash positionIt enhances the Group’s quality of earnings, with lower exposure to the cyclicality inherent in PropertyIt provides the Group with greater capital optionality, governed in line with its capital allocation framework Going forward, Kier will not commit capital to new Property developments, a process managed in a controlledway to balance timing and value, with capital to be realised in line with existing development schedules. With a simplified operating model, the Group will focus on capturing growth opportunities across its chosensectors, supported by access to c.£200bn of secured framework positions and significant future investment fromgovernment and regulated clients across both capital and operational expenditure programmes over the next 5-15 years. This positions the Group to deliver more consistent performance in the medium-term, supported by its strongtrack record of framework renewals, its ability to demonstrate value for money and social value outcomes, and itsend-to-end capability, delivered locally at scale across the UK. Medium-term financial targets The Group has updated its medium-term financial targets to align with its strategic priorities (above): Revenue: mid-single digit growth Adjusted operating margin: 4.0-4.5%Operating cashflow conversion: >90%Dividend cover: c.3xBalance sheet: average net cash of >£200m, by FY29Adjusted EPS: double-digit growth Capital Allocation After capital expenditure and the payment of a dividend, the Group’s capital allocation framework prioritises the targetof >£200m average net cash by FY29. Dividend - The outlook for the Group remains strong, underpinned by the large, high-quality order book andcharacterised by robust cash flow generation. In line with its dividend policy, the Board has proposed a final dividendof 5.2p, making a full year dividend of 7.8p per share (FY25: 7.2p per share). The final dividend will be paid on 4December 2026 to shareholders on the register at close of business on 30 October 2026. The shares will be markedex-dividend on 29 October 2026. Kier has a Dividend Reinvestment Plan (DRIP), which allows shareholders to reinvest their cash dividends in shares.The final election date for the DRIP is 13 November 2026. Dividends are an important component of the total return strategy and the Board’s stated aim is to deliver a dividend,covered c.3x by adjusted earnings and in a payment ratio of approximately one-third interim dividend and two-thirdsfinal dividend. Acquisitions - The Group may also consider select value accretive acquisitions within its core markets, alongside thereturn of excess capital via share buybacks. Share buybacks - The Group has demonstrated strong cash generation over several years, facilitating an initial sharebuyback of £20m, which completed in December 2025. The Board approved a subsequent share buyback of £25m,which was announced in March 2026 and is expected to be fully executed by the end of calendar 2026. Operational changes and initiatives The Group has taken a number of steps to optimise its structure and leadership capability, positioning itself tomaximise the market opportunities that exist to shape the future of the UK’s vital social and economic infrastructure.These provide a strong platform from which to leverage Kier’s framework expertise and end-to-end capability to deliverdisciplined, sustainable growth across the Infrastructure and Construction businesses. During the year, Stuart Togwell assumed the role of Chief Executive Officer as part of the Group’s long termsuccession planning. The executive management team was further strengthened with Kier welcoming Tom Hinton asChief Financial Officer (previously Interim CEO at Wincanton) and Martin Staehr as Group Managing Director ofConstruction, (previously a Construction Director at Laing O’Rourke). Additionally, James Askew and Louisa Finlaymoved to the newly created roles of Group Commercial Director and Chief Operating Officer, respectively, while JoeIncutti assumed the role of Group Managing Director for Infrastructure, combining Transportation and NaturalResources, Nuclear and Networks into a single infrastructure powerhouse. Together, these appointments provide theappropriate leadership capacity, governance and sector expertise to support the Group’s scale and ambitions. Furthermore, the Group launched its Naturally Digital programme, giving all employees access to the appropriatedigital tools and platforms they need to work effectively. Designed to improve productivity, collaboration and data-leddecision making across the business, the programme supports project delivery, operational efficiency and customerrelationships. Social and environmental impact Kier continues to deliver measurable environmental, social and economic benefits, supporting customers,communities and the wider UK economy. This remains a key factor in its success in accessing projects, viaestablished relationships, across multiple sectors. In May 2026, Kier was recognised in the Financial Times European Climate Leaders and ranked 1st in construction, 3rd in the UK and 13th overall in Europe across 600 companies that were assessed. This reflects the efforts and approachwe are taking to prioritise climate action and how we are translating ambition into measurable outcomes. It reflectssustained reductions in operational emissions, supported by clear targets, robust governance and the integration ofsustainability into day-to-day decision making. In FY26, the Group achieved a 34% year-on-year reduction in Scope 1 and 2 carbon emissions. This amounts to an81% reduction since the FY19 baseline, largely driven by the replacement of diesel with use of HVO (hydrotreatedvegetable oil). This continued progress supports its carbon reduction targets to become net zero carbon for Scope 1and 2 by 2039. Kier’s sustainability framework, ‘Building for a Sustainable World’, focuses on three pillars: People, Places and Planet,with relevant metrics that report progress. During the year, the Group conducted a review of the framework, with adouble materiality assessment to ensure it remains aligned to the Group’s needs, stakeholder expectations andsustainability’s ever evolving landscape. The 12-month rolling Significant Environmental Incident Rate (SEIR) of 7represents a substantial reduction compared to FY25 (47), with 2 significant environmental incidents
Page 5
recorded. The Group’s 12-month rolling Accident Incident Rate (AIR) of 101 in the year saw a 12% decrease onFY25, while the 12-month rolling All Accident Incident Rate (AAIR) of 269 represents a decrease of 22% comparedto FY25. While these measures all demonstrate good progress, the Group strives to meet ambitious targets to furtherimprove its health, safety and wellbeing performance, integrating robust processes, procedures and a riskmanagement framework to underpin a high performing safety culture. In June 2026, Kier was recognised for its work championing gender equality with a place on the Sunday Timesand BITC Gender Top 50. Furthermore, Kier Group was awarded ESG Leader – Contractor at the New CivilEngineer Awards 2026, as well as the Diversity and Inclusion Excellence award at Construction News Awards2026. Kier was recognised in 2026 among the top 100 apprenticeship employers by the Department for Education. Ouryear-on-year ranking increased from 41st to 22nd place, which is a testament not only to the support that we offerto apprentices, but also to the culture of respect and inclusion which we are working hard to nurture. Operational Review Infrastructure Year to 30 June2026 Year to 30 June2025 ChangeRevenue (£m) 2,340.1 2,136.0 10%Adjusted operating profit (£m)1 128.7 111.0 16%Adjusted operating margin (%) 5.5% 5.2% 30bpsReported operating profit (£m) 109.8 89.5 23%Order book (£bn) 7.4 6.5 14%1Stated before adjusting items of £18.9m (FY25: £21.5m) Key project and framework wins in the year include: UK Fusion Energy (ILIOS consortium) – first, £200m, tranche of the STEP fusion programme (£10bntotal project) Sizewell C’s North Plaza – main entrance to the nuclear power station (£38bn total project) National Highways – £968m legacy concrete roads framework Norfolk Highways – £700m maintenance and infrastructure services contract South West Water – c.£140m extension of the Network Services Alliance framework Bridgwater Tidal Barrier Scheme – c.£100m Construction Continuation contract, for the EnvironmentAgency East West Rail –next phase survey work (up to £93m) for one of the UK’s largest rail programmes Further recent wins include: Thames Water - up to £280m quality improvement contract at Maple Lodge Greater Manchester - major accessibility improvements at six railway stations c.95% of forecast revenue secured for FY271 1Order book cover based on FY27 consensus revenue as at 14 September 2026 Infrastructure delivers capital and maintenance projects in the UK’s road, rail, water, environment, energy andaviation sectors. The year saw strong growth from the water business, where project activity continues to ramp up significantly, as partof increased spend in the sector under AMP8. Water represents a key structural growth opportunity for Kier,capitalising on the Group’s 150 strong specialist water M&E capability. The Group has leading positions on £11bnworth of water frameworks with 10 customers, and over 140 live projects currently across the UK. For roads, revenue growth was driven by design work on National Highways projects, including the A66 dualling andM6 Lune Gorge viaducts, under the Road Investment Strategy (RIS 3) and delivery of services for local highwaysauthorities, including Birmingham, Northamptonshire and TFL. For rail, momentum was sustained by the successfuldelivery of new stations in Willenhall and Darlaston, as well as continuing involvement with major national networks, asthe wider sector transitions to the next Control Period 7 (CP7). The order book grew year-on-year by 14% to £7.4bn underpinned by new work secured with both NationalHighways and local authorities. The adjusted operating profit grew 16% to £129m (FY25: £111m), with the margin expanding from 5.2% to 5.5%,reflecting the evolving mix of business in our core markets. Reported operating profit grew to £110m (FY25:£90m), with adjusting items relating to the amortisation of contract rights from the Buckingham Group and otheracquisitions. Construction Year to 30 June2026 Year to 30 June2025 ChangeRevenue (£m) 1,986.8 1,910.5 4%Adjusted operating profit (£m)1 76.5 75.0 2%Adjusted operating margin (%) 3.9% 3.9% -Reported operating profit (£m) 44.3 54.9 (19)%Order book (£bn) 4.5 4.5 -1Stated before adjusting items of £32.2m (FY25: £20.1m) Key project and framework wins in the year included: Hospital 2.0 Alliance - £37bn framework NHS Trust - Princess Alexandra Eye hospital, Edinburgh (initial works) and Chapel Allerton,Leeds Teaching Hospital (upgrade of theatres) Education Construction 2025 - £15bn framework Education - over £300m of projects, across central and local government, and the private sector Further recent wins include: Hinchingbrooke hospital - c.£500m redevelopment under the Hospital 2.0 Alliance framework (see above) Holden House - c.£100m office commercial redevelopment with Derwent London Government Commercial Agency, FM and Security Services framework (8 years) c.100% of forecast revenue secured for FY271 1Order book cover based on FY27 consensus revenue as at 14 September 2026 The Construction business designs and delivers building projects vital to the UK’s infrastructure, covering theeducation, healthcare, justice and defence sectors, together with property management services. As one of thelargest Tier 1 regional contractors, Kier combines its national reach with delivery at a local level. Revenue growth in the full year of 4% (after a slight drop in H1) reflects the ramp up of some significant projectworks, such as HMP Glasgow, to full delivery phase. The order book for Construction at June 2026 of £4.5bn is inline with that at June 2025, but does not include the Hinchingbrooke hospital redevelopment which was awardedpost year-end (c.£500m, July 2026).
Page 6
Adjusted operating profit grew 2% to £77m (FY25: £75m), maintaining an industry top tier margin of 3.9% along withcontinued contract selection discipline (FY25: 3.9%). The Group incurred costs of £32m (FY25: £20m) in the year,principally due to fire and cladding compliance, presented as adjusting items. Included within Construction is Kier Places (15% of FY26 revenue), a business providing recurring revenuestreams through long‐term facilities management, housing maintenance and specialised works. The Constructionoffering is further strengthened by the growing use of its in‐house mechanical and electrical (M&E) capability acrossall regions (supporting around 50% of FY26 revenue). Property Year to 30 June2026 Year to 30 June2025 ChangeRevenue (£m) 63.4 38.4 65%Adjusted operating profit (£m) 9.1 12.2 (25)%Adjusted operating margin (%) 14.4% 31.8% nmReported operating profit (£m) 9.1 12.2 (25)%Capital employed (£m) 222 198 12%ROCE (%) 4.3% 6.7% (240)bps The Property business invests in and develops mixed-use commercial and residential urban regenerationschemes across the UK, largely through joint ventures. The business generated revenue of £63m (FY25: £38m),while operating profit, driven by transaction timings, reduced to £9.1m (FY25: £12.2m) impacted by the widermacro-economic turbulence. Against this challenging backdrop, the business continued to de-risk its portfolio, as follows: Planning permission secured to date on c.80% of projects overall, including a residential portfolio of over 5,000unitsConstruction currently in progress on 7 individual projects, including 3 pre-funded projects, with 270residential unitsSecured tenancy/active marketing on 4 individual projects From FY27, in line with the Group’s strategic priorities, there will be no investment in new Property developmentopportunities. This process will be managed in a controlled way to balance timing and value, with capital to berealised in line with existing development schedules. Corporate Year to 30June 2026 Year to 30 June2025 Change Adjusted operating loss (£m)1 (44.5) (39.1) 14%Reported operating loss (£m) (44.5) (42.9) 4% 1 Stated before adjusting items of £nil (FY25: £3.8m) The Corporate segment comprises the costs of the Group’s central functions. Higher costs in the year reflectsuccession within several executive positions as well as certain strategic initiatives. Summary and outlook Kier has delivered another year of strong performance, achieving excellent revenue and profit growth. The Groupcontinued to bolster its financial profile, reaching an average net cash position for the first time in over a decade, asignificant milestone from which to build. Kier has taken important steps to strengthen and simplify its business,enhance the capability of its leadership team and align the Group even more closely with the significant growthopportunities ahead. The Group has also seen further improvements in employee engagement and customersatisfaction which reflect the strength of its culture and provide a strong foundation for future success. Kier is building a stronger, more focused business, concentrating its expertise, resources and talent where it cancreate the greatest value for customers, shareholders, communities and colleagues. The Group enters FY27 withstrong foundations and clear strategic priorities, to make the most of the sizeable opportunity in front of it. In particular,Kier brings good momentum into the new financial year, with recent significant contract and framework awards, strongorder book growth and an expanding pipeline. This gives the Group confidence, looking at FY27, that earnings will beat the top end of the Board’s prior expectations. Reflecting this confidence, the Group has updated its medium-termfinancial targets to underline its ambition and the value creation opportunity at hand for its shareholders. Financial Review Introduction The Group delivered a strong performance during the year, with year-on-year growth in revenue and profits,along with the year-end order book standing at £11.9bn. The Group has also achieved an average cash positionas a result of disciplined operational delivery and cash management. The Group achieved growth of 7.5% giving revenues of £4,393.0m (FY25: £4,087.8m) which helped generate anadjusted operating profit of £169.8m (FY25: £159.1m). The continued strong operational performance led to a 4.4% increase in operating profit to £118.7m (FY25:£113.7m) and an increase in profit before tax to £83.8m (FY25: £78.1m). Adjusting items were £52.6m (FY25: £47.3m). The current year charge includes £19.0m of amortisation ofintangible contract rights and £32.1m of fire and cladding compliance costs, relating to updated regulations onlegacy projects. Net finance charges for the year were £34.9m (FY25: £35.6m), broadly in line with the prior year. Adjusted earnings per share increased by 8.8% to 23.5p (FY25: 21.6p). The Group generated Adjusted EBITDA of £236.1m (FY25: £227.9m) and recorded a £165.0m free cash inflow duringthe year (FY25: £155.4m), with supplier payment days remaining constant at 32 days (HY26: 32 days). Driven by its strong underlying cash flow growth, the Group achieved average net cash for the year ended 30 June2026 of £10.7m (FY25: net debt of £(49.2)m). The order book increased to £11.9bn, an 8.2% increase since the prior year end (FY25: £11.0bn). Over 95% ofrevenue for FY27 is already secured which provides certainty for next year. The Group completed its initial share buyback programme during the year and commenced a further buybackprogramme, in addition to payment of the ordinary dividend. Further cash flow items included adjusting items, pensiondeficit obligations and purchasing existing Kier shares on behalf of the Group’s employees. Net cash at 30 June 2026of £232.4m was 13.9% higher compared to the prior year (FY25: £204.1m). Alongside maintaining strict capital discipline, the Group continues to invest in areas that support long-term growth andvalue creation. This includes the Naturally Digital programme, where the Group will be investing in digital capability andAI-enabled tools designed to improve productivity, further strengthen delivery and help create a more efficient andscalable business. This ongoing investment will support both enhanced customer outcomes and the generation ofsustainable returns.
Page 7
Summary of financial performance Adjusted1 results Statutory reported results 30 Jun2026 30 Jun2025 Change% 30 Jun2026 30 Jun2025 Change%Revenue (£m) 4,393.0 4.087.8 7.5 4,393.0 4,087.8 7.5Revenue (£m) - Excluding JV's 4,352.5 4,077.1 6.8 4,352.5 4.077.1 6.8Profit from operations (£m) 169.8 159.1 6.7 118.7 113.7 4.4Profit before tax (£m) 136.4 125.4 8.8 83.8 78.1 7.3Earnings per share (p) 23.5 21.6 8.8 14.1 12.8 10.2Total dividend per share (p) 7.8 7.2 8.3 Free cash flow (£m) 165.0 155.4 6.2 Net cash (£m) 232.4 204.1 13.9 Net cash/(debt) (£m) – average 10.7 (49.2) Order book (£bn) 11.9 11.0 8.2 1Reference to 'Adjusted' excludes adjusting items, see note 3. Revenue The following table bridges the Group revenue from the year ended 30 June 2025 to the year ended 30 June2026. £mRevenue for the year ended 30 June 2025 4,087.8Infrastructure 204.1Construction 76.3Property and Corporate 24.8Revenue for the year ended 30 June 2026 4,393.0 Group revenue grew by £305.2m, with all segments contributing to the growth. In particular, the Infrastructure businessreported a 9.6% increase in revenue compared to the prior year. The Group continues to focus on delivering high-quality and high-margin work. Alternative performance measures (APMs) The Directors continue to consider that it is appropriate to present an income statement that shows the Group'sstatutory profits only. In addition to the Group’s statutory results, the Directors believe it is appropriate to disclose those items which are one-off, material or non-recurring in size or nature. The Group is disclosing as supplementary information an adjusted profitAPM. The Directors consider doing so clarifies the presentation of the financial statements and better reflects theinternal management reporting and is therefore consistent with the requirements of IFRS 8. Adjusted operating profit £mAdjusted operating profit for the year ended 30 June 2025 159.1Infrastructure 17.7Construction 1.5Property and Corporate (8.5)Adjusted operating profit for the year ended 30 June 2026 169.8 A reconciliation of reported to adjusted operating profit is provided below: Operating profit Profit before tax 30 Jun2026£m 30 Jun2025£m 30 Jun2026£m 30 Jun2025£mReported profit 118.7 113.7 83.8 78.1Amortisation of acquired intangible assets 19.0 21.6 19.0 21.6Fire compliance costs 32.1 17.0 32.1 17.0Property-related items – 4.8 – 4.8Net financing costs – – 1.5 1.9Other – 2.0 – 2.0Adjusted profit 169.8 159.1 136.4 125.4 Additional information about these items is as follows: Amortisation of acquired intangible assets £19.0m (FY25: £21.6m):Comprises the amortisation of acquired contract rights through the acquisitions of MRBL Limited (Mouchel Group),May Gurney Integrated Services plc and the Buckingham Group. These balances will be fully amortised by the end ofFY27. Fire and cladding compliance costs £32.1m (FY25: £17.0m):The Group continues to review all of its current and legacy constructed buildings where it has used cladding solutionsand continues to assess the action required in line with the latest updates to Government guidance, as it applies, tomulti-storey and multi-occupied residential buildings. The charge incurred in the year is for those projects where the Group has now confirmed liability and has a reasonableestimate of the cost to rectify the issues identified, less any confirmed insurance recoveries that are consideredvirtually certain of receipt. Earnings per share Earnings per share (EPS), before adjusting items, amounted to 23.5p (FY25: 21.6p). Reported EPS, after adjustingitems, from continuing operations amounted to 14.1p (FY25: 12.8p). Both EPS measures have increased due to acombination of improved profitability and a reduction in the Weighted Average Number of Shares as a result of theshare buyback programmes. Finance income and charges The Group’s finance charges include interest on the Group’s bank borrowings and Senior Notes as well as financecharges relating to leases recorded under IFRS 16. Net finance charges for the year were £34.9m (FY25: £35.6m), which includes interest on bank borrowings and SeniorNotes of £28.5m (FY25: £30.8m). Lease interest was £10.4m (FY25: £9.1m). The Group had a net interest credit of £2.7m (FY25: £4.3m) in relation to the defined benefit pension schemes whichhas arisen due to the overall pension surplus. The Group continues to exclude lease liabilities from its definition of net cash/(debt). Dividend The Board has declared, subject to shareholder approval, a final dividend of 5.2p per share (FY25: 5.2p) whichtogether with the interim dividend of 2.6p represents 3x adjusted earnings cover.
Page 8
Balance sheet Net assets The Group had net assets of £511.4m at 30 June 2026 (FY25: £517.2m). Goodwill The Group held intangible assets of £583.1m (FY25: £608.4m) of which goodwill represented £543.5m (FY25:£543.5m). The Group completed its annual review of goodwill assuming a pre-tax discount rate of 12.4% (FY25: 13.5%) andconcluded that no impairment was required. The Infrastructure group of cash generating units (CGU) comprise £523.1m of the total goodwill balance. Noimpairment is noted as management believes the discounted cash flows are underpinned by the order book andcurrent pipeline prospects and the CGU is not sensitive to changes in key assumptions. Deferred tax asset The Group has a deferred tax asset of £127.7m recognised at 30 June 2026 (FY25: £136.7m) primarily due tohistorical losses. The year-on-year decrease in the asset is driven by the tax impact of the actuarial pension gains inthe year, as well as the utilisation of tax losses. Due to the improved profitability of the business, based on the Group's forecasts it is expected that the deferred taxasset will be utilised over a period of approximately five years. A tax credit of £12.0m (FY25: £8.5m) has been included within adjusting items. Right-of-use assets and lease liabilities At 30 June 2026, the Group had right-of-use assets of £110.2m (FY25: £96.5m) and associated lease liabilities of£178.0m (FY25: £151.1m). The movements at each balance sheet date reflect operational equipment requirementsless associated depreciation and lease repayments. Investment properties As at 30 June 2026, the Group had investment properties with a fair value of £107.6m (FY25: £100.6m). The Group has long-term leases on two office buildings which were formerly utilised by the Group that have beenvacated and are now leased out to third parties, and as such are held as investment properties. In addition, the Group's Property business invests in and develops primarily mixed-use commercial and residentialschemes and sites across the UK. Eight of these sites are held as investment properties. During the year the Group sold Tempsford Hall, its former head office, for £10.0m, whilst retaining the surroundingagricultural land. Investment in Joint Ventures (JVs) A number of projects within the Property division are developed alongside joint venture partners. Investment in JVs at30 June 2026 was £158.7m (FY25: £145.8m). Contract assets and liabilities Contract assets represent the Group's right to consideration in exchange for works which have already beenperformed. Similarly, a contract liability is recognised when a customer pays consideration before work is performed. At30 June 2026, total contract assets amounted to £487.4m (FY25: £374.0m). Contract liabilities were £292.9m (FY25: £168.0m), reflecting an increase in cash advances across several projects. Retirement benefits obligation Kier operates a number of defined benefit pension schemes. At 30 June 2026, the reported surplus, which is thedifference between the aggregate value of the schemes' assets and the present value of their future liabilities (definedbenefit obligation), was £59.3m (FY25: £47.2m), before accounting for deferred tax, with the movement in the yearprimarily as a result of actuarial gains of £6.3m (FY25: losses of £42.5m) and employer contributions of £5.2m (FY25:£7.0m). The net actuarial gain results from a change in the financial assumptions used to calculate the defined benefitobligation (specifically higher corporate bond yields) and higher than assumed asset returns. These actuarial gainshave been partially offset by increases in the defined benefit obligations caused by a change in the demographicassumptions (longer life expectancies). In addition, deficit reduction contributions have increased the schemes’ assets. During the year, the Group agreed triennial funding valuations for six of its seven defined benefit contribution schemes.Following these valuations, aggregate future deficit contributions will continue in line with the level of contributionsmade in FY26, at £5.2m per annum, until July 2030. In addition, the Group has agreed to pay one-off lump sumcontributions totalling £0.9m in FY27. Free cash flow and net cash 30 Jun2026 30 Jun2025 £m £mOperating profit 118.7 113.7Depreciation of owned assets 6.2 5.6Depreciation of right-of-use assets 47.8 46.1Amortisation 31.3 38.7EBITDA 204.0 204.1Adjusting items excluding adjusting amortisation and interest 32.1 23.8Adjusted EBITDA 236.1 227.9Working capital inflow 9.8 27.7Net capital expenditure including finance lease capital payments (64.6) (64.9)Joint Venture dividends less profits 9.1 5.4Other free cash flow items 15.8 3.1Operating free cash flow 206.2 199.2Net interest and tax (41.2) (43.8)Free cash flow 165.0 155.4 2026 2025 £m £mNet cash at 1 July 204.1 167.2Free cash flow 165.0 155.4Adjusting items (19.7) (17.8)Net investment in Joint Ventures (22.0) (51.0)Pension deficit payments and fees (5.9) (7.8)Purchase of own shares – share buyback (22.3) (6.4)Purchase of own shares – employee benefit trust (29.7) (9.7)Dividends paid (34.1) (24.1)Other (3.0) (1.7)Net cash at 30 June 232.4 204.1 The Group generated a £165.0m free cash inflow during the year (FY25: £155.4m), driven by strong operating cashconversion of 121%. The Group delivered a net cash position of £232.4m at 30 June 2026 (FY25: £204.1m).
Page 9
The Group reported average cash for the year of £10.7m (FY25: net debt of £(49.2)m). Through its cash flows theGroup completed its initial share buyback programme and commenced a further buyback programme, paid dividends,adjusting items, tax and interest and pension deficit obligations, and purchased existing Kier shares on behalf ofemployees. The purchase of existing shares relates to the Group’s employee benefit trusts which acquire Kier shares from themarket for use in settling the Long-Term Incentive Plan (LTIP) and Sharesave share schemes when they vest. Thetrusts purchased and sold shares at a net cost of £29.7m (FY25: £9.7m). A further £22.3m (FY25: £6.4m) of shareswere purchased as part of the share buyback programme. Accounting policies The Group's annual consolidated financial statements are prepared in accordance with UK-adopted InternationalAccounting Standards and with the requirements of the Companies Act 2006. There have been no significant changesto the Group's accounting policies during the year. Treasury facilities At 30 June 2026, the Group had committed debt facilities of £440m as well as access to uncommitted short-termborrowing facilities, such as overdrafts. In October 2025 the Group refinanced its Revolving Credit Facility (RCF). The new £190m RCF replaces the previous£150m facility and has been made available to the Group for an initial committed three-year term, with options toextend for a further two years to October 2030. With committed facilities now comprising £250m of Senior Notes maturing in February 2029 and an extended £190mRCF, the Group has significant committed funding to support its growth plans. The Group's remaining financial instruments mainly comprise cash and liquid investments. The Group selectivelyenters into derivative transactions (interest rate and currency swaps) to manage interest rate and currency risks arisingfrom its sources of finance. There are minor foreign currency risks arising from the Group's operations both in the UK and through its limitednumber of international activities. Currency exposure to international assets is hedged through inter-companybalances and borrowings, so that assets denominated in foreign currencies are matched, as far as possible, byliabilities. Where exposures to currency fluctuations are identified, forward exchange contracts are completed to buyand sell foreign currency. The Group does not enter into speculative transactions. Going concern The Directors are satisfied that the Group has adequate resources to meet its obligations as they fall due for a periodof at least 12 months from the date of approving these preliminary financial statements and remain covenantcompliant. For these reasons, they continue to adopt the going concern basis in preparing these preliminary financialstatements. Further information on this assessment is detailed in note 1 of the consolidated financial statements. Financial statementsCondensed consolidated income statementFor the year ended 30 June 2026 Note 2026£m 2025£m Continuing operations Group revenue including share of joint ventures1 2 4,393.0 4,087.8Less share of joint ventures 2 (40.5) (10.7)Group revenue 4,352.5 4,077.1Cost of sales (3,972.0) (3,746.3)Gross profit 380.5 330.8Administrative expenses (268.5) (223.2)Share of post-tax results of joint ventures 12 (5.6) (1.5)Other income 4 12.3 7.6Operating profit 2 118.7 113.7Finance income 5 7.7 8.0Finance costs 5 (42.6) (43.6)Profit before tax 2 83.8 78.1Taxation 7 (22.0) (21.7)Profit for the year 2 61.8 56.4 Attributable to: Owners of the Company 61.7 56.4Non-controlling interests 0.1 – 61.8 56.4 Earnings per share – Basic 9 14.1p 12.8p– Diluted 9 13.5p 12.1p Supplementary information Adjusted2 operating profit 3 169.8 159.1 Adjusted2 profit before tax 3 136.4 125.4 Adjusted2 basic earnings per share 9 23.5p 21.6p 1 Group revenue including share of joint ventures is an alternative performance measure. 2 References to ‘adjusted’ exclude adjusting items, see note 3. These are alternative performance measures. Financial statementsCondensed consolidated statement of comprehensive incomeFor the year ended 30 June 2026 Note 2026£m 2025£m Continuing operations Profit for the year 61.8 56.4 Other comprehensive income Items that may be reclassified subsequently to the income statement Fair value movements on cash flow hedging instruments – 0.4Fair value movements on cash flow hedging instruments recycled to the income statement 5 – (0.2)Items that will not be reclassified to the income statement Re-measurement of retirement benefit assets and obligations 6 6.3 (42.5)Tax on re-measurement of retirement benefit assets and obligations (1.5) 10.7
Page 10
Other comprehensive income/(loss) for the year 4.8 (31.6) Total comprehensive income for the year 66.6 24.8 Attributable to: Equity holders of the Company 66.5 24.8Non-controlling interests 0.1 – 66.6 24.8 Financial statementsCondensed consolidated balance sheetAs at 30 June 2026 Note 2026£m 2025£m Non-current assets Intangible assets 10 583.1 608.4Property, plant and equipment 20.5 28.0Right-of-use assets 110.2 96.5Investment properties 11 107.6 100.6Investments in and loans to joint ventures 12 158.7 145.8Deferred tax assets 7 127.7 136.7Contract assets 57.0 57.0Trade and other receivables 35.8 30.0Retirement benefit assets 6 80.6 74.1Non-current assets 1,281.2 1,277.1Current assets Inventories 64.6 65.6Contract assets 430.4 317.0Trade and other receivables 255.9 202.8Corporation tax receivable 2.4 0.6Cash and cash equivalents 13 1,899.6 1,689.4Current assets 2,652.9 2,275.4Total assets 3,934.1 3,552.5Current liabilities Bank overdrafts 13 (1,402.0) (1,221.4)Lease liabilities (52.7) (40.8)Trade and other payables 14 (1,134.2) (1,105.7)Contract liabilities (292.9) (168.0)Provisions (81.6) (53.1)Current liabilities (2,963.4) (2,589.0)Non-current liabilities Borrowings 13 (265.2) (263.9)Lease liabilities (125.3) (110.3)Trade and other payables 14 (20.9) (19.1)Retirement benefit obligations 6 (21.3) (26.9)Provisions (26.6) (26.1)Non-current liabilities (459.3) (446.3)Total liabilities (3,422.7) (3,035.3)Net assets 2 511.4 517.2Equity Share capital 4.5 4.5Share premium 3.6 3.6Retained earnings 152.7 158.6Merger reserve 350.6 350.6Equity attributable to owners of the Company 511.4 517.3Non-controlling interests – (0.1)Total equity 511.4 517.2 Financial statementsCondensed consolidated statement of changes in equityAs at 30 June 2026 Sharecapital1 £m Sharepremium£m Retainedearnings2 £m Mergerreserve3 £m Otherreserves4 £m Equityattributableto owners ofthe Company£m Non-controllinginterests£m Totalequity£m At 1 July 2024 4.5 3.2 162.1 350.6 (0.2) 520.2 (0.1) 520.1Profit for the year – – 56.4 – – 56.4 – 56.4Other comprehensive(loss)/income – – (31.8) – 0.2 (31.6) – (31.6)Total comprehensiveincome for the year – – 24.6 – 0.2 24.8 – 24.8Dividends paid 8 – – (24.1) – – (24.1) – (24.1)Issue of own shares – 0.4 – – – 0.4 – 0.4Share-based payments – – 8.9 – – 8.9 – 8.9Deferred tax on share-based payments – – 3.2 – – 3.2 – 3.2Purchase of own sharesvia employee benefit trust – – (9.7) – – (9.7) – (9.7)Purchase of own sharesvia share buyback – – (6.4) – – (6.4) – (6.4)At 30 June 2025 4.5 3.6 158.6 350.6 – 517.3 (0.1) 517.2Profit for the year – – 61.7 – – 61.7 0.1 61.8Other comprehensiveincome – – 4.8 – – 4.8 – 4.8Total comprehensiveincome for the year – – 66.5 – – 66.5 0.1 66.6Dividends paid 8 – – (34.1) – – (34.1) – (34.1)Share-based payments – – 11.2 – – 11.2 – 11.2Deferred tax on share-based payments – – 2.5 – – 2.5 – 2.5Purchase of own sharesvia employee benefit trust – – (29.7) – – (29.7) – (29.7)Purchase of own sharesvia share buyback – – (22.3) – – (22.3) – (22.3)At 30 June 2026 4.5 3.6 152.7 350.6 – 511.4 – 511.4 1. The share capital includes 452,875,390 of authorised, issued and fully paid Ordinary Shares of 1p each (2025: 452,875,390). The holders of Ordinary Shares areentitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. No new shares were issuedunder the Sharesave Scheme (2025: 741,638).
Page 11
2. The Company has completed its initial share buyback programme to return capital to shareholders. On 3 March 2026, the Company announced a further sharebuyback of up to £25m. During the year, a total of 10,476,317 Ordinary Shares of 1p each (2025: 4,552,151) were purchased across the two buybacks at a cost of£22.3m (2025: £6.4m). At the balance sheet date, a total of 15,028,468 (2025: 4,552,151) Ordinary Shares have been acquired under buyback programmes and wereheld as treasury shares.3. £134.8m of the merger reserve arose on the shares issued at a premium to acquire May Gurney on 8 July 2013. In addition, a further £215.8m relates to the issue ofshare capital on 18 June 2021.4. Other reserves include capital redemption reserve, cash flow hedge reserve and translation reserve which were all £nil at 30 June 2025 and 30 June 2026. Financial statementsCondensed consolidated statement of cash flowsFor the year ended 30 June 2026 Note 2026£m 2025£m Continuing operations Cash flows from operating activities Profit before tax 83.8 78.1Net finance cost 5 34.9 35.6Share of post-tax trading results of joint ventures 12 5.6 1.5Pension cost charge 2.1 2.1Equity-settled share-based payments charge 11.2 8.9Amortisation of intangible assets and mobilisation costs 31.3 38.7Change in fair value of investment properties 11 (12.3) (7.6)Depreciation of property, plant and equipment 6.2 5.6Depreciation of right-of-use assets 47.8 46.1Loss on disposal of property, plant and equipment, right-of-use assets and intangible assets 0.9 0.4 Operating cash inflows before movements in working capital and deficit contributions topension funds 211.5 209.4Deficit contributions to pension funds 6 (5.2) (7.0)(Increase)/decrease in inventories (5.2) 2.0(Increase)/decrease in receivables (47.9) 19.6Increase in contract assets (113.4) (15.9)Increase/(decrease) in payables 30.1 (20.5)Increase in contract liabilities 124.9 39.6Increase in provisions 29.0 2.0Cash inflow from operating activities 223.8 229.2Dividends received from joint ventures 12 3.5 3.9Interest received 5 5.0 3.7Income tax paid (2.9) (1.8)Net cash inflow from operating activities 229.4 235.0Cash flows from investing activities Proceeds from sale of property, plant and equipment 5.7 1.0Proceeds from sale of investment property 13.7 –Purchase of property, plant and equipment and right-of-use assets (5.9) (11.1)Purchase of intangible assets 10 (4.7) (5.4)Purchase of capitalised mobilisation costs (4.0) (1.9)Purchase of investment property (2.5) –Investment in joint ventures (55.6) (60.9)Loan repayment and return of equity from joint ventures 12 33.6 9.9Net cash used in investing activities (19.7) (68.4)Cash flows from financing activities Issue of shares – 0.4Purchase of own shares via employee benefit trust (29.7) (9.7)Purchase of own shares via share buyback (22.3) (6.4)Interest paid (39.2) (40.6)Cost of raising finance (1.6) –Principal elements of lease payments (53.2) (47.5)Drawdown of borrowings – 4.7Repayment of borrowings – (44.3)Settlement of derivative financial instruments – 7.2Dividends paid 8 (34.1) (24.1)Net cash used in financing activities (180.1) (160.3)Increase in cash, cash equivalents and bank overdrafts 29.6 6.3Opening cash, cash equivalents and bank overdrafts 468.0 461.7Closing cash, cash equivalents and bank overdrafts 13 497.6 468.0
Page 13
Financial statementsNotes to the condensed consolidated financial statementsFor the year ended 30 June 2026 1 Significant accounting policiesReporting entityKier Group plc (the Company) is a public limited company which is listed on the London Stock Exchange and incorporated anddomiciled in the UK. The Company’s registered number is 2708030. The address of its registered office is 2nd Floor, Optimum House,Clippers Quay, Salford, M50 3XP. The consolidated financial statements (financial statements) for the year ended 30 June 2026 comprise the Company and itssubsidiaries (together referred to as the Group) and the Group’s interest in joint arrangements. Basis of preparationThese results do not constitute the Group’s statutory accounts as at and for the year ended 30 June 2026, but are derived fromthose statutory accounts which are prepared in accordance with UK-adopted International Accounting Standards effective foraccounting periods beginning on or after 1 July 2025 and with the requirements of the Companies Act 2006 as applicable tocompanies reporting under those standards. The Group’s statutory accounts as at and for the year ended 30 June 2026 wereapproved by the Board on 14 September 2026 and will be delivered to the Registrar of Companies following the Group’s AnnualGeneral Meeting on 12 November 2026. The auditors have reported on those accounts; their report was unqualified and did notcontain statements under section 498 section (2) and (3) of the Companies Act 2006. Going concernIn assessing the appropriateness of the going concern basis of preparation, the Directors have considered the Group's ability to continue inoperational existence through to 31 December 2027, being at least 12 months from the date of approval of these financial statements. The assessment included a review of cash flow forecasts across all divisions, recent trading performance, forecast accuracy, availablefinancing facilities, expected covenant compliance and the strength of the Group's order book. At 30 June 2026, the Group's order booktotalled £11.9bn, providing strong visibility of secured and probable future work throughout the assessment period. The Group benefits from a robust funding structure, comprising committed facilities of £440m, including a £190m Revolving Credit Facilityavailable until October 2028, with an option to extend to October 2030, and £250m of Senior Notes maturing in February 2029. The Directors considered a range of severe but plausible downside scenarios, including reductions in trading activity, project-specificchallenges, inflationary pressures, subcontractor insolvency, changes in interest rates and the potential impact of emerging regulatoryrequirements. The assessment also reflected the ability of management to implement appropriate mitigating actions where necessary. In addition, reverse stress testing was performed to determine the extent of deterioration required to exhaust available liquidity or breachfinancial covenants. The analysis demonstrated that a significantly more severe combination of adverse events than those consideredplausible would be required before liquidity or covenant headroom was eliminated. The Directors therefore consider such outcomes to beremote. The Directors also considered wider macroeconomic and political risks. The Group's forecasts are supported by a substantial proportion ofrevenue that is either secured or highly probable, much of which arises through long-term framework agreements. The Group operates inessential infrastructure and public service sectors, including transport, water, energy, justice, healthcare and education, which continue tobenefit from long-term Government investment commitments, including those set out in the UK's 10-Year Infrastructure Strategy. While inflation remains a factor within both the supply chain and labour market, the Group's contract portfolio provides significant protection,with approximately 95% of contracts being delivered under two-stage or cost-reimbursable arrangements. The Directors have also considered the impact of climate change. No material short-term physical climate-related risks have beenidentified. Over the medium term, the Group expects the transition to a lower-carbon economy to create additional opportunities acrosssustainable infrastructure, water management, environmental services and nuclear projects. Accordingly, climate change is not expected tohave a material adverse impact on the Group's ability to continue as a going concern. Having reviewed the Group's forecasts, downside scenarios and reverse stress testing, the Directors are satisfied that the Group isexpected to maintain substantial liquidity headroom and remain compliant with its financial covenants throughout the going concern period. Accordingly, the Directors conclude that the Group has adequate resources to meet its obligations as they fall due for at least 12 monthsfrom the date of approval of these financial statements. The Directors have not identified any material uncertainties that may cast significantdoubt on the Group's ability to continue as a going concern and therefore continue to adopt the going concern basis in preparing thesefinancial statements. 1 Cost reimbursable includes Target-Cost and Cost-Plus contracts 2 Segmental reporting Year to 30 June 2026 Infrastructure£mConstruction£m Property£m Corporate£m Group£m Continuing Operations Revenue1 Group revenue including share of joint ventures 2,340.1 1,986.8 63.4 2.7 4,393.0Less share of joint ventures (0.8) – (39.7) – (40.5)Group revenue 2,339.3 1,986.8 23.7 2.7 4,352.5 Timing of revenue1 Products and services transferred at a point in time 7.4 – 29.3 – 36.7Products and services transferred over time 2,332.7 1,986.8 34.1 2.7 4,356.3Group revenue including share of joint ventures 2,340.1 1,986.8 63.4 2.7 4,393.0 Profit/(loss) for the year Adjusted operating profit/(loss)2 128.7 76.5 9.1 (44.5) 169.8 Adjusting items2 (18.9) (32.2) – – (51.1)Operating profit/(loss) 109.8 44.3 9.1 (44.5) 118.7 Net finance income/(costs)3 8.6 16.3 (7.5) (52.3) (34.9)Profit/(loss) before tax 118.4 60.6 1.6 (96.8) 83.8Taxation (22.0)Profit for the year 61.8 Balance sheet Operating assets4 1,044.0 361.7 319.1 309.7 2,034.5 Operating liabilities4 (641.6) (893.0) (14.8) (206.1) (1,755.5) Net operating assets/(liabilities)4 402.4 (531.3) 304.3 103.6 279.0Cash, cash equivalents, bank overdrafts and borrowings 675.6 906.2 (187.9) (1,161.5) 232.4Net assets/(liabilities) 1,078.0 374.9 116.4 (1,057.9) 511.4 Other information Inter-segmental revenue 6.0 3.5 – 37.6 47.1Capital expenditure on property, plant, equipment andintangible assets 2.1 1.4 – 6.5 10.0Depreciation of property, plant and equipment (0.5) (0.6) (0.2) (4.9) (6.2)Amortisation of computer software (1.2) (3.4) – (6.4) (11.0) Year to 30 June 2025 Infrastructure £mConstruction£m Property£m Corporate£m Group£m Continuing Operations Revenue1 Group revenue including share of joint ventures 2,136.0 1,910.5 38.4 2.9 4,087.8Less share of joint ventures (1.3) – (9.4) – (10.7)Group revenue 2,134.7 1,910.5 29.0 2.9 4,077.1
Page 14
2026£m 2025£m Fair value gain on investment properties 12.3 7.6Other income 12.3 7.6 2026£m 2025£m Finance income Bank deposits 3.6 3.6Interest receivable on loans to related parties 0.4 0.1Net interest on net defined benefit obligation 2.7 4.3Interest receivable on leases 1.0 – 7.7 8.0Finance costs Interest payable on loans and overdrafts (6.0) (8.3)Interest payable on bonds (22.5) (22.5)Interest payable on leases (10.4) (9.1)Foreign exchange movements on foreign denominated borrowings – (0.5)Fair value movements on cash flow hedges recycled from other comprehensive income – 0.2Other (3.7) (3.4) (42.6) (43.6) Timing of revenue1 Products and services transferred at a point in time 6.9 – 33.1 – 40.0Products and services transferred over time 2,129.1 1,910.5 5.3 2.9 4,047.8Group revenue including share of joint ventures 2,136.0 1,910.5 38.4 2.9 4,087.8 Profit/(loss) for the year Adjusted operating profit/(loss)2 111.0 75.0 12.2 (39.1) 159.1 Adjusting items2 (21.5) (20.1) – (3.8) (45.4)Operating profit/(loss) 89.5 54.9 12.2 (42.9) 113.7 Net finance income/(costs)3 6.7 4.4 (5.9) (40.8) (35.6)Profit/(loss) before tax 96.2 59.3 6.3 (83.7) 78.1Taxation (21.7)Profit for the year 56.4 Balance sheet Operating assets4 920.8 351.0 297.0 294.3 1,863.1 Operating liabilities4 (511.9) (788.5) (37.0) (212.6) (1,550.0) Net operating assets/(liabilities)4 408.9 (437.5) 260.0 81.7 313.1Cash, cash equivalents, bank overdrafts and borrowings 642.6 757.4 (225.2) (970.7) 204.1Net financial assets –Net assets/(liabilities) 1,051.5 319.9 34.8 (889.0) 517.2 Other information Inter-segmental revenue 11.2 3.5 – 40.2 54.9Capital expenditure on property, plant, equipment andintangible assets 2.2 1.0 – 13.3 16.5Depreciation of property, plant and equipment (0.5) (0.2) (0.2) (4.7) (5.6)Amortisation of computer software (1.7) (0.8) – (11.1) (13.6) 1 Revenue is stated after the exclusion of inter-segmental revenue. 100% of the Group’s revenue is derived from UK-based customers. 16% of the Group’s revenue wasreceived from High Speed Two (HS2) Limited (2025: 16%). Group revenue including joint ventures is an alternative performance measure. 2 See note 3 for adjusting items. 3 Interest was (charged)/credited to the divisions at a notional rate of 4.0% (2025: 4.0%). 4 Net operating assets/(liabilities) represent assets excluding cash, cash equivalents, bank overdrafts, borrowings, financial assets and liabilities, and interest-bearinginter-company loans. 3 Adjusting items(a) Reconciliation to adjusted profit 2026 2025 Continuing operations Adjusted£m Adjustingitems£m Total£m Adjusted£m Adjustingitems£m Total£m Group revenue 4,352.5 – 4,352.5 4,077.1 – 4,077.1Cost of sales (3,941.1) (30.9) (3,972.0) (3,727.3) (19.0) (3,746.3)Gross profit 411.4 (30.9) 380.5 349.8 (19.0) 330.8Administrative expenses (248.3) (20.2) (268.5) (197.6) (25.6) (223.2)Share of post-tax results of joint ventures (5.6) – (5.6) (1.5) – (1.5)Other income 12.3 – 12.3 8.4 (0.8) 7.6Operating profit 169.8 (51.1) 118.7 159.1 (45.4) 113.7Net finance charges (33.4) (1.5) (34.9) (33.7) (1.9) (35.6)Profit before tax 136.4 (52.6) 83.8 125.4 (47.3) 78.1Taxation (34.0) 12.0 (22.0) (30.2) 8.5 (21.7)Profit for the year 102.4 (40.6) 61.8 95.2 (38.8) 56.4 Adjusting items include: Cost of sales – consists of fire and cladding compliance costs of £30.9m (2025: £17.0m) incurred in rectifying legacy issues tocomply with the latest Government guidance. The net charge of £30.9m includes a credit of £6.2m (2025: £8.7m) in respect ofinsurance proceeds. Administrative expenses – includes amortisation of acquired intangible assets of £19.0m (2025: £21.6m) comprising amortisedcontract rights arising from prior year acquisitions. In addition, £1.2m has been included in relation to central costs incurred inmanaging fire and cladding claims. Net finance charges – these relate to IFRS 16 interest charges on leased investment properties previously used as offices. Taxation – the taxation credit of £12.0m (2025: £8.5m) is the tax effect of the items described above. (b) Cash outflow from adjusting items 2026£m 2025£m Adjusting items reported in the income statement 52.6 47.3Less: non-cash items incurred in the year (42.1) (38.4)Add: payment of prior year accruals and provisions 9.2 8.9Cash outflow from adjusting items 19.7 17.8 4 Other income 5 Finance income and costs
Page 15
Net finance costs (34.9) (35.6)
Page 16
2026% 2025% Discount rate 5.75 5.50Inflation rate (Retail Price Index) 2.95 2.90Inflation rate (Consumer Price Index) 2.45 – 2.75 2.20 – 2.65 6 Retirement benefit obligationsThe principal assumptions used by the independent qualified actuaries are shown below. The amounts recognised in the financial statements in respect of the Group’s defined benefit schemes are as follows: 2026 2025 KierGroup£m Acquiredschemes£m Total£m KierGroup£m Acquiredschemes£m Total£m Opening net surplus/(deficit) 68.7 (21.5) 47.2 96.9 (16.4) 80.5Credit/(charge) to income statement 1.8 (1.2) 0.6 3.1 (0.9) 2.2Employer contributions – 5.2 5.2 – 7.0 7.0Actuarial gains/(losses) 3.4 2.9 6.3 (31.3) (11.2) (42.5)Closing net surplus/(deficit) 73.9 (14.6) 59.3 68.7 (21.5) 47.2Comprising: Fair value of scheme assets 758.5 381.6 1,140.1 763.0 372.2 1,135.2Net present value of the defined benefit obligation (684.6) (396.2) (1,080.8) (694.3) (393.7) (1,088.0)Net surplus/(deficit) 73.9 (14.6) 59.3 68.7 (21.5) 47.2Presentation of net surplus/(deficit) in theConsolidated balance sheet: Retirement benefit assets 73.9 6.7 80.6 68.7 5.4 74.1Retirement benefit obligations – (21.3) (21.3) – (26.9) (26.9)Net surplus/(deficit) 73.9 (14.6) 59.3 68.7 (21.5) 47.2 7 Taxation 2026£m 2025£m Profit before tax 83.8 78.1Losses from joint venture companies 3.2 –Profit before tax excluding income from joint ventures 87.0 78.1Current tax (13.4) (12.5)Deferred tax (8.6) (9.2)Total tax charge in the income statement (22.0) (21.7)Effective tax rate 25.3% 27.8% The deferred tax asset of £127.7m (2025: £136.7m) includes £90.5m of tax losses (2025: £100.2m) and £37.2m of other deferred tax assetsand liabilities (2025: £36.5m). When considering the recoverability of net deferred tax assets, the taxable profit forecasts are based on the same Board-approvedinformation used to support the going concern and goodwill impairment assessments. The following evidence has been considered when assessing whether these forecasts are achievable and realistic: The business traded in line with Board expectations in 2026;The Group has completed its restructuring activities and is focusing on the achievement of the long-term sustainable growth plan; andThe Group’s core businesses are well placed to benefit from the announced and committed UK Government spending plans to invest ininfrastructure and decarbonisation. When considering the length of time over which the losses are expected to be utilised, the Group has taken into account that generally only50% of profits in each year can be offset by brought forward losses. Based on these forecasts, the Group is expected to utilise its deferred tax asset over a period of approximately 5 years. The Research and Development Expenditure Credit (‘RDEC’) of £40.7m was included in operating profit during the year (2025: £41.0m).Included in other receivables at 30 June 2026 were RDEC receivables of £40.1m (2025: £31.8m). This predominantly represents in yearclaims, with the FY25 balance received during the year. 8 Dividends 2026 2025 £m pence pershare £m pence pershare Prior year final 22.7 5.2 15.2 3.5Current year interim 11.4 2.6 8.9 2.0Total dividend recognised in the year 34.1 7.8 24.1 5.5 2026 2025 £m pence pershare £m pence pershare Interim 11.4 2.6 8.9 2.0Final 22.4 5.2 22.7 5.2Total dividend relating to the year 33.8 7.8 31.6 7.2 The final dividend for the year ending 30 June 2026 of 5.2p per share (2025: 5.2p) was not proposed until after the balance sheet date andso has not been included as a liability in these financial statements. The dividend totalling approximately £22.4m will be paid on 4 December2026 to shareholders on the register on 30 October 2026. 9 Earnings per share 2026 2025 Continuing operations Basic£m Diluted£m Basic£m Diluted£m Profit for the year 61.8 61.8 56.4 56.4Less: non-controlling interest share (0.1) (0.1) – –Profit after tax and minority interests 61.7 61.7 56.4 56.4Adjusting items (excluding tax) 52.6 52.6 47.3 47.3Tax impact of adjusting items (12.0) (12.0) (8.5) (8.5)Adjusted profit after tax 102.3 102.3 95.2 95.2 Weighted average number of shares (no, m) 436.1 457.5 441.5 466.1 Basic earnings (p) Attributable to the ordinary equity holders of the Company 14.1 13.5 12.8 12.1Adjusted basic earnings (p) Adjusted basic earnings per share attributable to the ordinary equityholders of the Company 23.5 22.4 21.6 20.4 The weighted average number of shares is lower than the number of shares in issue by 16.8m (2025: 11.4m) primarily due to the movementof shares that are held by the Group’s employee benefit trusts and treasury shares acquired through Kier’s share buyback programme,which are excluded from the calculation. Options granted to employees under the Sharesave and LTIP schemes are considered to be potential ordinary shares. They have beenincluded in the determination of diluted earnings per share if the required performance obligations would have been met based on the
Page 17
Group’s performance up to the reporting date, and to the extent to which they are dilutive. The options have not been included in thedetermination of basic earnings per share. 10 Intangible assets Goodwill£m Intangiblecontractrights£m Computersoftware£m Total£m Cost At 1 July 2024 545.6 243.2 135.1 923.9Additions – – 5.4 5.4Disposals – – (5.4) (5.4)At 30 June 2025 545.6 243.2 135.1 923.9Additions – – 4.7 4.7Disposals – – (1.0) (1.0)Transfers – – 0.2 0.2At 30 June 2026 545.6 243.2 139.0 927.8 Accumulated amortisation and impairment At 1 July 2024 (2.1) (194.1) (89.5) (285.7)Charge for the year – (21.6) (13.6) (35.2)Disposals – – 5.4 5.4At 30 June 2025 (2.1) (215.7) (97.7) (315.5)Charge for the year – (19.0) (11.0) (30.0)Disposals – – 1.0 1.0Transfers – – (0.2) (0.2)At 30 June 2026 (2.1) (234.7) (107.9) (344.7) Net book value At 30 June 2026 543.5 8.5 31.1 583.1At 30 June 2025 543.5 27.5 37.4 608.4 11 Investment properties Owned assets£m Right-of-useassets£m Total£m At 1 July 2024 61.1 43.8 104.9Transfers 3.6 (15.5) (11.9)Fair value gain/(loss) recognised in other income 8.3 (0.7) 7.6At 30 June 2025 73.0 27.6 100.6Transfers 6.2 – 6.2Additions 2.5 – 2.5Disposals (14.0) – (14.0)Fair value gain/(loss) recognised in other income 15.0 (2.7) 12.3At 30 June 2026 82.7 24.9 107.6 12 Investment in and loans to joint ventures 2026£m 2025£m At 1 July 145.8 91.7Additions 55.6 76.4Disposals – (7.0)Loan repayments and return of equity (33.6) (9.9)Share of: Operating profit/(loss) 2.7 (0.4)Finance costs (9.2) (0.9)Tax income/(expense) 0.9 (0.2)Post-tax results of joint ventures (5.6) (1.5)Dividends received (3.5) (3.9)At 30 June 158.7 145.8 13 Net cash 2026£m 2025£m Cash and cash equivalents 1,899.6 1,689.4Bank overdrafts (1,402.0) (1,221.4)Net cash, cash equivalents and bank overdrafts 497.6 468.0Borrowings due after one year (265.2) (263.9)Net cash 232.4 204.1 Average month-end net cash was £10.7m (2025: £49.2m debt). Net cash/(debt) excludes lease liabilities. 14 Trade and other payables 2026£m 2025£m Current: Trade payables 285.6 311.0Accruals 617.6 580.7Subcontract retentions 34.8 37.1Other taxation and social security 178.2 168.1Other payables and deferred income 18.0 8.8 1,134.2 1,105.7Non-current: Subcontract retentions 20.9 19.1 20.9 19.1 15 Guarantees, contingent liabilities and contingent assets The Company has given guarantees and entered into counter-indemnities in respect of bonds relating to certain of the Group’s owncontracts. The Company has also given guarantees in respect of certain contractual obligations of its subsidiaries and joint ventures, whichwere entered into in the normal course of business, as well as certain of the Group’s other obligations (for example, in respect of the Group’sfinance facilities and its pension schemes). Financial guarantees over the obligations of the Company’s subsidiaries and joint ventures areinitially measured at fair value, based on the premium received from the joint venture or the differential in the interest rate of the borrowingincluding and excluding the guarantee. Subsequent to initial recognition, financial guarantee contracts are measured at the higher of theinitial fair value measurement (adjusted for any income amounts recognised) and the amount determined in accordance with the expectedcredit loss model. Performance guarantees are treated as a contingent liability until such time as it becomes probable that payment will berequired under its terms. In line with comparable construction businesses, from time to time, the Group is involved in legal claims in the ordinary course of business.The Group assesses the likelihood of success of claims taking into consideration specific circumstances in each case and any legal advice
Page 18
received. Provisions are recorded for the Directors’ best estimate of the probable outflow in respect of such matters. If the Directors considerthat a claim is unlikely to succeed, no provision is made. Fire and cladding reviewThe Group continues to review its current and legacy constructed buildings where it has used cladding solutions and continues to assess theaction required in line with the latest Government guidance, as it applies, to multi-storey and multi-occupied residential buildings. Thebuildings, including the cladding works, were signed off by approved inspectors as compliant with the relevant Building Regulations at thetime of completion. In preparing the financial statements, currently available information has been considered, including the current best estimate of the extentand future costs of work required, based on the detailed expert reports, fire safety assessments and physical inspections undertaken. Where an obligation has been established and a reliable estimate of the costs to rectify is available, a provision has been made. No provisionhas been made where an obligation has not been established. These estimates may be updated as further inspections are completed and as work progresses which could give rise to the recognition offurther liabilities. Such liabilities, should they arise, are expected to be covered materially by the Group’s insurance arrangements therebylimiting the net exposure. Any insurance recovery must be considered virtually certain before a corresponding asset is recognised and so thiscould potentially lead to an asymmetry in the timing of the recognition of assets and liabilities. 16 Related parties The Group has related party relationships with its joint ventures, key management personnel and pension schemes in which its employeesparticipate. There have been no significant changes in the nature of related party transactions since the last annual financial statements for the yearended 30 June 2025. Details of contributions made to the pension schemes by the Group are detailed in note 6.
Page 19
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in theUnited Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share suchanalysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provideus, please see our Privacy Policy. END