Keller Group plc (LON:KLR), the world’s largest geotechnical specialist contractor, has announced its results for the half year ended 30 June 2026.
| H1 2026£m | H1 2025£m | % change | Constant currency% change | ||
| Revenue | 1,608.0 | 1,457.7 | +10.3% | +11.1% | |
| Underlying operating profit1 | 117.9 | 102.6 | +14.9% | +17.1% | |
| Underlying operating profit margin1 | 7.3% | 7.0% | +30bps | n/a | |
| Underlying diluted earnings per share1 | 120.1p | 98.1p | +22.4% | ||
| Free cash flow before interest and tax2 | 43.0 | 51.6 | -16.7% | ||
| Net debt (bank covenant IAS 17 basis)3 | 15.9 | 61.5 | -74.1% | ||
| Dividend per share | 28.7p | 18.3p | +56.8% | ||
| Statutory operating profit | 112.5 | 97.3 | +15.6% | ||
| Statutory profit before tax | 103.3 | 87.4 | +18.2% | ||
| Net cash inflow from operating activities | 51.8 | 41.8 | +23.9% | ||
| Statutory diluted earnings per share | 113.6p | 91.8p | +23.7% | ||
| Statutory net debt (IFRS 16 basis) | 102.6 | 153.5 | -33.2% | ||
1 Underlying operating profit and underlying diluted earnings per share are non-statutory measures which provide readers of this Announcement with a balanced and comparable view of the Group’s performance by excluding the impact of non-underlying items, as disclosed in note 7 to the interim condensed consolidated financial statements.
2 Free cash flow is defined within the adjusted performance measures in the interim condensed consolidated financial statements
3 Net debt/ leverage is presented on a lender covenant basis excluding the impact of IFRS 16 as disclosed within the adjusted performance measures in the interim condensed consolidated financial statements..
Strong growth drives excellent financial performance
• Significant revenue and profit growth, up 11.1% to £1,608m and 17.1% to £117.9m respectively, on a constant currency basis driven by North America performance.
• Underlying operating profit margin of 7.3% (H1 2025: 7%) reflects sustained commercial discipline and project execution.
• EPS increased by 22.4% to 120.1p reflecting continued earnings growth and positive impact of share buybacks.
Strength of geographic and sector diversification, outstanding performance in North America
• North America benefited from record volume and profit growth, underpinned by significant demand for infrastructure and data centre projects.
• Improved performance in Europe and Middle East, with margin and profit growth principally driven by the Middle East.
• In Asia-Pacific, continued momentum in Austral largely offset margin pressures in the Australia foundations market.
Balance sheet provides flexibility to deliver attractive shareholder returns and M&A
• Net debt3 of £15.9m and leverage3 of 0.1x at 30 June 2026, well below the Group’s 0.5x-1.5x target range.
• £100m share buyback programme launched on 30 March 2026; c.£35m completed since launch.
• Interim dividend per share up 57% to 28.7p (H1 2025: 18.3p), reflecting the Group’s enhanced dividend policy (target cover of 2.5x-3.5x) adopted in March.
FY 2026 outlook
• Management remain confident in delivering a full year performance in line with the recently upgraded market expectations4.
• Record order book of £1.9bn (H1 2025: £1.6bn), elevated by multi-year I-40 highway remediation contract.
• Well positioned to continue delivering value for customers and returns for shareholders in FY26 and beyond.
James Wroath, Chief Executive Officer, said:
“I am delighted to report an excellent first half that reflects the Group’s strong operational execution and continued commercial discipline. Our teams around the world have delivered an outstanding performance with record revenue and profit growth in North America, our largest division.
We are building further momentum, with a record order book of £1.9bn demonstrating the benefits of our geographic and sector diversification. This also clearly illustrates our ability to capitalise on megatrends, such as recent increased investment in infrastructure and data centres.
Our interim dividend has been increased in line with the updated dividend policy we announced in March, reflecting our confidence in the sustainability of our performance.
Looking ahead, we are well positioned to deliver another strong performance through the remainder of 2026 and beyond.”
Notice of Capital Markets Day
• Keller will hold a Capital Markets Day on the afternoon of 14 October 2026, in London.
4 Current company compiled consensus for the year-ending 31 Dec 2026 (based on the estimates of seven analysts) is revenue of £3,337m and underlying operating profit of £242m.
