Kier Group plc (LON:KIE), a leading infrastructure services, construction and property group, has issued a trading update for the period from 1 July 2025 to date prior to its Annual General Meeting (AGM) to be held later today.
Trading
The current financial year has started well and the Group is trading in line with the Board’s expectations. As in the prior year, the Group’s performance is expected to be second-half weighted.
Order book
The order book currently stands at c.£11.6bn (30 June 2025: £11.0bn) and 94% of FY26 Group revenue is now estimated to be secured, providing a high degree of visibility. Bidding discipline and risk management embedded across the business continue to drive the high quality and profitable order book.
Recent awards include:
· Infrastructure Services, Transportation:
o Appointed to deliver Norfolk County Council’s £700m highways and infrastructure works term services contract, starting on 1 April 2026 for a period of up to 14 years.
o Kier Design secured 7 Lots on Transport Technology Framework led by the Crown Commercial Service (CCS).
· Infrastructure Services, Natural Resources, Nuclear & Networks:
o Appointed to £205m United Utilities Reservoir Works Framework to deliver vital improvements and maintenance as part of AMP8 investment.
· Construction:
o Awarded four education projects worth a total of c.£190m.
o Awarded a c.£116m worth of contracts to deliver an additional 240 prison places at HMPs Lancaster Farms as part of the Small Secure Houseblocks Programme (SSHP) Alliance for the Ministry of Justice (MoJ).
· Property activity in the period:
o Secured planning consent for a new and revised 452,000 sq ft scheme at Logistics City, Andover on the Walworth Business Park under the Test Valley Borough Council JV.
o Successfully let the second floor of the redeveloped office building at 19 Cornwall Street, Birmingham to global law firm Squire Patton Boggs.
o Construction started on the Town Square development at Riverwell, Watford, pre-let with tenants including Travelodge, Tesco and Greggs.
The construction and refurbishment of key areas such as transport, education, healthcare, justice, defence and nuclear form a key part of the new UK Government’s investment priorities. As a major supplier in all these areas they should, alongside the significant investment in regulated industries such as the water sector, provide significant growth opportunities in the medium-term.
Balance sheet
Kier has maintained its focus on operational delivery and cash management and our strong sustainable cash generation is in-line with the Board’s expectations of targeting an average month-end cash position.
In October 2025 the Group completed the refinancing of its existing Revolving Credit Facility (“RCF”). The new £190m RCF replaces the previous £150m facility and has been made available to the Company for an initial committed 3 year term, with an option to extend for a further 2 years to October 2030.
The refinancing reflects the continued confidence of our banking partners in the long-term growth prospects of the Group and our ability to continue to generate significant operating cash flows.
Stuart Togwell, Chief Executive of Kier Group, commented:
“The current financial year has started well and we are trading in line with our expectations. I am excited to be beginning my tenure as Chief Executive and now look forward to working with our exceptional people to drive growth and value for our customers, the communities we serve and our shareholders.“
