Kier Group PLC (LSE:KIE) reported further profit growth and record orders for the past year and said it was trading ahead of expectations for the new year.
Revenue for the infrastructure and construction firm rose 3% to £4.1 billion in the year to 30 June 2025, while adjusted operating profit increased 6% to £159.1 million as margins were lifted to 3.9% from 3.85%.
Free cash flow was £155.4 million, equivalent to 125% cash conversion, and average net debt improved by £67 million to £49 million.
The order book expanded to a record £11 billion, giving Kier visibility on 91% of expected revenue for the new financial year and around 70% for the year after.
With the confidence that brings, the full-year dividend was hiked 38% to 7.2p per share, following the £20 million share buyback launched in January, more than 30% complete by year-end.
Outgoing chief executive Andrew Davies hailed the profit performance in the first year of the group's long-term sustainable growth plan, with operating profit margins moving towards a target range of 4.0-4.5%.
"Building on our outperformance in FY25, the group has started the current financial year well and for FY26 is trading slightly ahead of the board's expectations," he said.
After six years in the role and now heading for retirement, he hands over to Stuart Togwell, previously managing director of construction, whose promotion was confirmed in July.