Morgan Sindall Group Plc (LON:MGNS) has announced its results for the half year ended 30 June 2026
Record first half results and remain confident in maintaining current expectations for 2026
Group Highlights
“We delivered another record half year results for the Group, achieving significant growth in adjusted1 profit before tax, up 21% to £116m from the prior period. Our performance continues to reinforce our track record of delivering strong revenue and growth in profits leading to robust cash generation, enabling continued investment in our Partnership businesses while also supporting strong dividend growth.
Our Fit Out and Construction Services businesses delivered excellent results and made a significant contribution to Group performance during the period, while our Partnerships businesses faced a more challenging macroeconomic environment.
The medium-term fundamentals for Fit Out remain strong and in Construction, we have continued to benefit from ongoing government investment commitments. As a result, we have increased the medium-term targets for both the Fit Out and Construction divisions.
Despite the challenging housing backdrop, the strength and breadth of our diverse operations, together with the visibility provided by our high-quality order book for the remainder of the year, we remain confident that our full year performance will be in line with our current expectations.”
John Morgan, Group Chief Executive Officer
| HY 2026 | HY 2025 | Change | |
| Revenue | £2,562m | £2,370m | +8% |
| Operating profit – adjusted1 | £111.5m | £91.8m | +21% |
| Profit before tax – adjusted1 | £116.1m | £95.9m | +21% |
| Earnings per share – adjusted1 | 186.1p | 153.1p | +22% |
| Period end net cash | £418m | £390m | +£28m |
| Interim dividend per share | 55.0p | 50.0p | +10% |
| Operating profit – reported | £111.5m | £91.3m | +22% |
| Profit before tax – reported | £116.1m | £95.4m | +22% |
| Basic earnings per share – reported | 186.1p | 155.7p | +20% |
1 ‘Adjusted’ is defined as before intangible amortisation and exceptional building safety charge: £Nil (HY 2025: before intangible amortisation of £0.4m and exceptional building safety charge £0.1m)
Highlights
· Strong revenue and PBTA growth once again underpin record results
o Revenue up 8% to £2.6bn (HY 2025: £2.4bn)
o Adjusted profit before tax up 21% to £116m (HY 2025: £96m)
o PBTA margin expansion to 4.5% (HY 2025: 4.0%)
· Continued cash discipline and balance sheet strength
o Net cash of £418m (HY 2025: £390m)
o Average daily net cash of £423m (HY 2025: £354m)
· High quality secured order book at £12.2bn (HY 2025: £12.0bn), with preferred bidder work increasing to £7.3bn, totalling £19.5bn
o Partnerships £12.1bn, up 18% (HY 2025: £10.3bn)
o Fit Out £1.7bn, in line with prior period (HY 2025: £1.7bn)
o Construction Services £5.7bn, marginally down 1% (HY 2025: £5.8bn)
· Interim dividend up 10% to 55p per share (HY 2025: 50p)
Divisional Highlights
| Revenue | Operating Profit1 | Operating % | Orderbook | |||||
| £m | Change | £m | Change | £m | Change | £m | Change | |
| Partnership Housing | 347 | -14% | 13.2 | – | 3.8% | +50bps | 2,461 | +12% |
| Mixed Use Partnerships | 25 | -4% | (1.1) | n/a | n/a | n/a | 4,613 | +1% |
| Fit Out | 996 | +19% | 69.1 | +19% | 6.9% | – | 1,331 | -8% |
| Construction | 742 | +18% | 24.4 | +47% | 3.3% | +70bps | 1,904 | – |
| Infrastructure | 468 | -3% | 18.3 | -1% | 3.9% | +10bps | 1,927 | +3% |
| Group/Eliminations | (16) | n/a | (12.4) | n/a | n/a | n/a | (2) | n/a |
| Total | 2,562 | +8% | 111.5 | +21% | 4.4% | +50bps | 12,234 | +2% |
1 ‘Adjusted’ is defined as before intangible amortisation and exceptional building safety charge: £Nil (HY 2025: before intangible amortisation of £0.4m and exceptional building safety charge £0.1m)
· As a result of the market position held, together with the quality of work secured and future prospects, the medium-term targets for Fit Out and Construction have been increased as of 23rd July 2026. The revised medium-term target for Fit Out has been increased to deliver an average annual operating profit of £100m-£130m (previously £80m-£100m). In Construction, the revised medium-term target has been increased to deliver an operating margin between 3.5% and 4.0% per annum (previously 3.0% and 3.5%), with an unchanged annual revenue target in excess of £1.5bn.
· Despite subdued housing market conditions, Partnership Housing delivered a solid profit contribution in the first half of the year, with operating profit in line with the prior period of £13.2m (HY 2025: £13.2m), while its operating margin expanded by 50 basis points to 3.8% (HY 2025: 3.3%). As near-term consumer confidence is expected to remain subdued due to wider economic uncertainty, operating profits for the full year are now anticipated to be slightly below the prior year. The average capital employed for the full year is expected to be between c£500m and £580m, reflecting the stage of its developments and sales activity levels, while continuing to optimise investment in partnership opportunities for the future.
· Mixed Use Partnerships continued to prioritise the number of projects starting on site while balancing near-term viability challenges, with 5 projects successfully started on site in the first half of the year and a further 8 planned for the remainder of the year. Trading performance in the period continued to reflect expensed investment costs for these projects, resulting in an operating loss in the period of £1.1m (HY 2025: operating loss £1.5m), with the full year expected to now show a small loss. The average capital employed for the year is expected to be between c£135m and £165m.
· Fit Out delivered another significant and market-leading performance in the first half of the year; both revenue and operating profit increased by 19% to £996m and £69.1m respectively (HY 2025: £838m and £58.1m) delivering an operating margin of 6.9% in line with the prior period. For the full year, the division is expected to have another strong performance, with profits expected to now be slightly ahead of the top end of the revised medium-term target range (Average annual operating profit £100m – £130m).
· Construction delivered an excellent performance in the period, applying a strong disciplined focus on operational delivery and risk management; operating profit was up 47% to £24.4m (HY 2025: £16.6m), revenue up 18% to £742m (HY 2025: £627m), delivering an operating margin of 3.3% (HY 2025: 2.6%). For 2026, its operating margin is now expected to be around the entry point of the revised target range (3.5% – 4.0%) and revenues are expected to make continued progress towards £1.5bn.
· Over the period Infrastructure has continued with the deployment of a number of planning and design activities for large frameworks, while also maintaining a high-quality of operational delivery across the business; operating profits were marginally behind the prior period at £18.3m, while its operating margin expanded by 10 basis points to 3.9% (HY 2025: 3.8%). For the full year, its operating margin is expected to be at top end of its target range, while revenues are expected to progress towards c£1bn, unchanged from previous guidance.
Presentation
· There will be an analyst and investor presentation at 9.00am at London Stock Exchange, 10 Paternoster Square, London, EC4M 7LS. Coffee and registration will be from 8.30am.
· A copy of these results is available at: www.morgansindall.com
· The presentation will be available via live webcast from 9.00am on 23 July 2026 at www.morgansindall.com.
