Mitie Group plc (LON:MTO) has announced its full year results for the 12 months to 31 March 2026 (FY26)
Double digit growth in revenue, operating profit and free cash flow
Record order book and bidding pipeline
Confidence in delivering FY25-FY27 Strategic Plan; foundations in place for FY28+
£100m of share buybacks in FY27 (including £40m current programme)
FY26 highlights
· Revenue up 10.5% to £5,619m (FY25: £5,083m), including 5.3% organic growth primarily driven by new contract wins and scope increases, pricing and projects upsell, alongside a 5.2% contribution from acquisitions
· Operating profit before Other items1 up 13% to £264m (FY25: £234m)
· Operating profit margin before Other items1 of 4.7% (FY25: 4.6%), despite headwinds of higher National Insurance Contributions, contract losses and other one-off costs; H2 FY26 margin 5.3% (H2 FY25: 5.0%)
· Contract wins of £6.3bn TCV2 including renewals/extensions (FY25: £7.5bn)
· Record total order book2 up 6% to £16.3bn (FY25: £15.4bn), reflecting book-to-bill ratio of 1.1x
· Record pipeline up 34% to £31.7bn (FY25: £23.7bn), of which >70% is due to be awarded in next 18 months
· Basic EPS before Other items1 up 7% to 13.6p (FY25: 12.7p), with the benefits of higher operating profit and share buybacks offsetting higher net finance costs and new share issuance to finance the Marlowe acquisition
· Operating profit of £151m (FY25: £162m) and basic EPS of 6.6p (FY25: 8.2p), reflecting higher Other items
· Other items1 of £113m (FY25: £73m) includes non-cash amortisation (£42m); costs to deliver margin enhancement initiatives (£29m); as well as Marlowe costs to achieve synergies and transaction costs (£22m)
· Good free cash flow3 generation of £162m (FY25: £143m); cash from operations of £290m (FY25: £249m)
· Strong balance sheet with leverage, including leases, of 1.2x EBITDA (FY25: 0.8x), within our 0.75-1.5x target range, based on average daily net debt of £440m (FY25: £264m); covenant leverage of 0.8x
· DB pension scheme actuarial surplus estimated at c.£12m at end-FY26 (vs £73m actuarial deficit in 2020); deficit repair contributions ceased and insurance ‘buy-in’ being progressed with scheme trustee
· Marlowe acquisition for c.£350m (cash and shares) delivered market leadership in Facilities Compliance, with integration progressing well; initial cost synergies of £7m in FY26 and early contract wins/revenue synergies
· Technology and data investments underpin launch of enterprise-wide programme to re-imagine and optimise internal workflows and customer-facing solutions through agentic AI
· Recommended final dividend of 3.1p per share; total dividend up 5% to 4.5p per share (FY25: 4.3p)
· Share buyback programme for FY27 of £100m, including remaining c.£40m of existing £100m programme launched in October 2025 (c.£60m of which was completed in FY26)
· Entering FY27 with confidence in delivering our FY25-FY27 Strategic Plan and continuing growth and margin expansion across our Facilities Management, Transformation and Compliance businesses
Commenting on the year and the outlook, Phil Bentley, Chief Executive Officer, said:
“FY26 has been another year of progress as we enter the final year of our FY25-FY27 Strategic Plan, with double‑digit growth in revenue and operating profit before Other items for the third consecutive year and good free cash flow generation. We also further developed our leadership into business-critical Facilities Compliance through the acquisition of Marlowe, and the integration is progressing well.
“Looking ahead, we enter FY27 with good momentum, supported by a record order book and bidding pipeline. Notwithstanding the potential for some incremental cost inflation as a result of the conflict in the Middle East, our ongoing margin enhancement initiatives, combined with the increasing mix of higher-margin Facilities Transformation and Facilities Compliance work and continued investment in data and AI, are expected to support margin progression, while we continue to reinvest for growth. We are confident of delivering our FY25-FY27 Strategic Plan.
“Mitie’s long-term value creation potential and foundations for the next phase of our strategy continue to be strengthened: capturing client ‘share of wallet’ in Facilities Management through deeper relationships and investments in sales & marketing; ‘turbo-charging’ Facilities Transformation through a growing pipeline of capital projects; and accelerating growth in Facilities Compliance with our existing clients, as we add Water & Environmental services and target larger opportunities in Fire & Security. Building on our leadership in technology, an enterprise-wide programme has been launched to re-imagine and optimise both our internal workflows and customer-facing solutions through agentic AI, positioning Mitie as a ‘frontier’ firm in the industry. Together, these strategic imperatives are expected to sustain above-market growth, expand margins and deliver attractive shareholder returns well beyond FY27.
“After almost a decade as CEO, it remains my intention to retire from Mitie at the end of the FY25-FY27 Strategic Plan, once a successor is in place – a process that is well underway. I am proud of the progress we have made in transforming Mitie into a world-class industry leader, positioned to deliver the ‘Future of High-Performing Places’ for our customers. I thank every one of our 84,000 Mitie colleagues for their dedication, professionalism and hard work, without which none of this could have been achieved. We are building a larger, more profitable and more cash generative business with a greater capacity to invest in growth and deliver attractive returns to shareholders.”
Analyst Presentation and Q&A
Phil Bentley (CEO) and Simon Kirkpatrick (CFO) will host a presentation and Q&A session today (4 June 2026) at 9.30am at The Shard and via a webcast: https://webcasts.umcdn.com/mit041
For dial in details please contact [email protected]. A copy of the presentation will be available on the company website in advance of the live presentation at www.mitie.com/investors.
