Hercules plc (LON:HERC), a leading UK power and infrastructure services group, has provided a trading and operational update for the year ended 30 September 2026.
FY26 Trading Update
The Group expects to deliver a financial performance ahead of current market expectations* on revenue, underlying EBITDA and statutory PBT, supported by an increasingly diversified business and positive operational progress across its divisions.
Group revenue is expected to exceed £130 million, representing growth of approximately 7.3% compared with the prior year ended 30 September 2025 (£121.2 million), and ahead of market expectations of £127 million.
This performance reflects the Group’s continued success in capitalising on investment across UK infrastructure markets, supported by its broadening range of specialist services and strengthening customer relationships.
Hercules has made encouraging progress across Labour Supply, Construction Services and Power & Energy Services, with growing opportunities for collaboration and cross-selling between divisions. Alongside this, Hercules remains focused on strengthening operational performance through disciplined cost management, improvements in efficiency and greater integration of its businesses.
*Market expectations – revenue of £127 million, underlying EBITDA of £4.1 million and statutory PBT (loss) of £1.6 million.
Brusk Korkmaz, Chief Executive Officer of Hercules, said:
“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.
“With Group revenue anticipated to exceed £130 million, and underlying EBITDA and statutory PBT expected to exceed market expectations, this performance demonstrates the continued progress we are making in delivering our strategy.
“We have strengthened our position across the UK’s essential infrastructure markets, expanded our specialist capabilities and built deeper relationships with major customers. Importantly, we are seeing increasing collaboration across our businesses, enabling us to offer a broader range of services and pursue new opportunities.
“Our Civil Projects business is expected to deliver a record year, while our Power & Energy operations continue to expand, supported by significant investment in the UK’s electricity infrastructure.
“Our Labour Supply Division has also continued to perform strongly, with encouraging growth in both customer relationships and white-collar recruitment.
“Alongside this growth, we are placing increasing emphasis on operational efficiency, disciplined cost management and profitability. Our focus 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.
“As Hercules continues to scale, we believe there are further opportunities to improve productivity, enhance operational performance and realise the benefits of greater integration across the Group.
“Looking ahead to FY27, we are particularly encouraged by the opportunities emerging across the water, power and energy sectors. Major long-term investment programmes are increasingly moving into the delivery phase, creating significant demand for the specialist skills and services that Hercules provides.
“We enter the new financial year with a growing pipeline, strengthened capabilities and a more diversified business than ever before. With continued opportunities for organic growth, a clear focus on efficiency and profitability, and substantial long-term investment across our core markets, we are confident in the Group’s prospects for FY27 and our ability to deliver further sustainable and profitable growth.
“Our ambition remains to build Hercules into a larger, more efficient, highly profitable and increasingly diversified UK infrastructure services group, delivering long-term value for all our shareholders.”
Operational Update
Labour Supply Services Division
The Group’s largest operating division continued to perform strongly during FY26, with robust demand for skilled labour across the UK infrastructure and construction markets.
The division continued to strengthen its customer relationships, with the number of clients increasing by 10% compared with the previous year, while expanding its presence across key infrastructure sectors.
Hercules maintained its leading position in supplying operatives to the Birmingham section of the HS2 route to London, reflecting the scale of the Group’s workforce capabilities, its ability to mobilise skilled personnel efficiently and its established relationships with major infrastructure contractors.
While HS2 remains an important source of activity, the Group has continued to diversify its labour supply operations into other infrastructure markets, including power, utilities and civil engineering, while building on its existing presence in the water sector.
Collaboration between divisions has increased, with Labour Supply supporting the Power & Energy Division through the provision of skilled personnel to major contractors undertaking electricity transmission and distribution projects.
The division recorded month-on-month growth in operatives placed on projects, alongside continued progress in the Scottish market, particularly within power and energy.
White-collar recruitment was another area of strong performance during FY26, with revenue increasing by approximately 35%, supported by new contract wins across civil engineering, infrastructure and energy.
Alongside commercial growth, the division remains focused on process improvement and operational efficiency, including exploring the integration of AI into recruitment activities to enhance productivity and scalability.
The division enters FY27 with an established market position, an expanding customer base and a strong pipeline of opportunities across multiple infrastructure markets.
Power and Energy Services Division
The UK power and energy sector continues to benefit from substantial long-term investment in electricity transmission infrastructure, driven by renewable energy generation, increasing electricity demand and the requirement to expand and modernise grid capacity.
This investment includes National Grid’s £1.2 billion programme to upgrade approximately 1,000km of overhead transmission lines across England and Wales, alongside significant investment by regional electricity network operators in Scotland.
With infrastructure programmes increasingly progressing from planning and procurement into construction, demand for specialist skills and services is expected to strengthen. More than £30 billion of investment is planned across the electricity transmission network through to 2031, providing a substantial multi-year market opportunity.
The Group’s Power & Energy Division, formally established in August 2026 following the acquisition of Advantage NRG in the previous year, is well positioned to benefit from this investment.
Advantage NRG provides specialist overhead line personnel and managed field teams to major electricity infrastructure contractors, strengthening the Group’s presence in this attractive market.
During FY26, Advantage NRG secured several multi-million-pound work packages supporting major electricity transmission upgrade and refurbishment programmes. Revenue increased by approximately 11% year-on-year, while the number of operatives grew by 5.7%, reflecting the continued expansion of the business.
The Group sees further opportunities to leverage the combined capabilities of Power & Energy and Labour Supply, strengthening service delivery and creating additional cross-selling opportunities.
The Board expects Power & Energy to make an increasingly important contribution to Group growth and profitability in FY27 and beyond, supported by expanding investment and a growing pipeline of activity.
Construction Services Division
The Construction Services Division continued to build momentum during FY26, with encouraging progress across Civil Projects, Hercules Academy and Lyons Power Services.
These businesses provide the Group with exposure to major long-term infrastructure investment programmes while expanding the range of specialist services available to customers.
The division continues to focus on strengthening delivery capabilities, improving operational efficiency and increasing collaboration with other Group businesses to support sustainable profitable growth.
Civil Projects
Civil Projects is expected to deliver a record year, with revenue increasing by approximately 25% compared with FY25, reflecting the highest level of project activity achieved by the business to date in the UK water sector.
This strong performance has been supported by increasing activity across the AMP8 investment programme as water infrastructure projects move into construction and delivery.
Approximately £104 billion is expected to be invested in the UK water sector during AMP8 through to 2030, providing substantial long-term opportunities for specialist infrastructure contractors.
The Civil Projects team expanded during FY26 to support increased delivery activity and broaden its geographic reach.
With a growing market opportunity, strengthened delivery capabilities and an established position in water infrastructure, the Board believes Civil Projects is well placed to achieve further growth during FY27.
The business will continue to focus on efficient project execution, effective commercial management and maintaining appropriate project margins as activity increases.
Hercules Academy
The Hercules Academy continued to develop its position in delivering specialist training, funded skills programmes and workforce development initiatives during FY26.
The Academy plays an increasingly important role in supporting the Group’s wider strategy by helping address workforce and skills shortages across major UK infrastructure markets.
The integration of training, labour supply and project delivery provides Hercules with a differentiated offering and supports its ability to develop and deploy skilled personnel efficiently.
During FY26, the Academy secured additional funded training awards and continued expanding its activities, including increasing its presence within the prison estate.
The Academy has also supported ex-offenders in progressing into employment through specialist training programmes, contributing to positive social outcomes and helping to develop a sustainable pipeline of skilled workers.
Looking ahead, the Board sees opportunities for the Academy to further support the growth of Hercules’ operational divisions while continuing to create value for customers and the wider communities in which the Group operates.
Lyons Power Services (“LPS”)
Lyons Power Services has made strong progress in its first year as part of the Hercules Group.
Revenue increased by approximately 22%, supported by successful integration and new opportunities generated through access to Hercules’ wider customer relationships and capabilities.
The business has continued to strengthen its team in anticipation of further growth in the UK power sector as major investment programmes accelerate.
The progress achieved demonstrates the benefits of integrating complementary specialist businesses into the Group and the potential to enhance commercial opportunities through greater collaboration and cross-selling.
The Board believes LPS is well positioned to build on its FY26 performance and deliver further growth during FY27, supported by the strong outlook for investment in the electricity network.
Group Outlook
Hercules enters FY27 with strong momentum, following a year in which financial performance is expected to be ahead of market expectations and significant operational progress has been achieved across the Group.
The Board remains positive about the outlook for the new financial year, supported by a growing pipeline of opportunities, increased operational capabilities and continued investment across essential UK infrastructure markets. Major investment programmes across the water, power and energy sectors are increasingly progressing into delivery, providing an attractive environment for Hercules’ specialist services.
The Group’s diversified platform positions it to capitalise on these opportunities through organic growth, increased collaboration between divisions and the development of long-term customer relationships.
Alongside revenue growth, a key priority for FY27 will be translating increased activity into profitability and stronger cash generation.
The Board remains focused on operational efficiency, maintaining disciplined control over the Group’s cost base and identifying opportunities to enhance margins across its divisions.
As Hercules continues to grow, greater integration of its businesses, improved resource utilisation and process efficiencies are expected to support scalability and improved financial performance.
The Group will continue to pursue organic growth while also evaluating selective acquisition opportunities where these can accelerate development, add complementary capabilities and deliver attractive returns.
With a strengthening operating platform, exposure to substantial multi-year infrastructure investment programmes and a clear focus on operational and financial performance, the Board is confident in Hercules’ prospects for FY27 and its ability to deliver sustainable and profitable growth.
