Kier reports record £11bn order book as chief exec departs

Kier’s Andrew Davies is stepping down after six years at the helm (Image: Kier)

Group revenue rose 3% year on year to £4.1 billion, while adjusted operating profit increased 6% to £159.1 million, delivering a margin of 3.9% (FY24: 3.8%). Reported operating profit rose 10% to £113.7 million.

Kier said 91% of FY26 revenue and around 70% of FY27 revenue were already secured, providing what it described as “considerable, multi-year visibility”.

Chief executive Andrew Davies said profit performance in particular was ahead of expectations in the first year of Kier’s long-term sustainable growth plan. He added that trading in FY26 had started slightly ahead of board forecasts.

Davies, who steps down after six years at the helm, highlighted further investment in the group’s property business and described Kier as “well positioned to continue to deliver infrastructure that matters and benefit from the UK Government’s 10-year Infrastructure Strategy”.

Stuart Togwell, currently group managing director of construction, will succeed Davies as chief executive.

Kier said 60% of its £11 billion order book is under target-cost or cost-reimbursable contracts, with the remainder on fixed-price contracts.

The average order size in its construction business is around £20 million, which the company said would limit its exposure if any given project did not go according to plan.

More than half (52%) of FY25 group revenue came from its infrastructure services business. Revenue in that division was up 7% to £2.1 billion, which Kier said reflected the acceleration of works on the HS2 high-speed railway, as well as growth in the water and nuclear sectors. Adjusted operating profit fell 1% year on year to £111 million.

Its construction business made up 47% of group revenue for the year. Revenue remained flat at £1.9 billion, while adjusted operating profit increased 8% to £75 million.

Its property business made up only 1% of group revenue and fell by 46% to £38.4 million. Operating profit was up 97% to £12.2 million.