Mears Group Plc · LSE:MER
Mears — FY2025 Earnings Presentation
17 slides from Mears's earnings presentation, 2026
Slide 1: Preliminary results for the full year ended 31 December 2025
Mears Group PLC Preliminary results for the full year ended 31 December 2025
Slide 2: Lucas Critchley CEO, Andrew Smith CFO
Lucas Critchley | CEO Andrew Smith | CFO
Slide 3: Key highlights
3 Key highlights Excellent operational and financial performance • Strong growth in traditional Maintenance-led activities • Continued strengthening of operating margin • 10% EPS growth, and further dividend progression Maintenance growth Growing Local Government work +12% (2024: +2%) • £1.2bn of ne
Slide 4: Income statement
4 Income statement 2025 2024 Change % £m £m Revenue 1,135.5 1,132.5 0% Adjusted operating profit1 64.8 63.6 +2% Adjusted operating margin %1 5.7% 5.6% • Strong revenue and profit performance Statutory profit before tax 63.5 64.1 -1% Tax expense (17.5) (17.2) +2% • Diluted EPS up 10% to 53.9p, driven
Slide 5: Segmental analysis
5 Segmental analysis Increasing momentum in growing Maintenance-led activities 2025 2024 Change £m £m Maintenance-led • Strong organic growth (+11%) augmented by Revenue Pennington acquisition (+1%) • Near 100% retention on contracts re-bid Maintenance-led 620.4 555.8 +12% • Successful mobilisation
Slide 6: Strengthening operating margin
6 Strengthening operating margin Target pre- • Robust operational and commercial focus driving 6% 5.7% IFRS 16 margin 5.6% Target pre-IFRS5.0-6.0% margin progression 16 margin 5.0%-6.0% Adjusted operating margin (pre-IFRS 16) % 5% 4.7% • AASC revenue reduction creates modest margin headwind, but fur
Slide 7: Strong underlying cash performance
7 Strong underlying cash performance 2025 2024 £m £m EBITDA 157.4 145.1 Working capital improvement 6.7 1.1 • 82% EBITDA to Operating cash Unwind of contract related liabilities (35.8) - conversion (2024: 101%) Operating cash 128.3 146.2 • Operating cash conversion, last 4-years, Tax paid (15.7) (17
Slide 8: Balance Sheet
8 Balance Sheet 2025 2024 £m £m Goodwill and intangible assets 127.9 128.1 • Assets and liabilities held for sale Property, plant and equipment (‘PPE’) 51.9 38.8 reflect carrying value of assets Right of use assets 289.3 272.2 attached to FM activities Investments and loan notes 24.0 12.5 • Reduced
Slide 9: Capital allocation
9 Capital allocation 1 2 3 4 5 Target Organic Strategic Ordinary Other leverage growth M&A dividend returns £3m maintenance capex Acquisition of Average daily Pennington Choices for £16m of buybacks (FY24: 17.5p full year dividend update adjusted net cash 2025 £29m AASC property £9.5m, a business fo
Slide 10: Guidance
1 0 Guidance 2025 2026 / Medium term Maintenance-led +12% +5.0%-9.0% • Increasing confidence in the growth revenue growth momentum within Maintenance-led activities. Management-led -£62m Further reduction revenue anticipated linked to AASC • The precise timing of the normalisation normalisation of A
Slide 11: Local Government highlights
11 Local Government highlights • Exceptional period of contract retentions and strong future pipeline gives confidence in future Maintenance • North Lanarkshire Council contract revenue growth performed well in FY25 and delivered anticipated revenue increase in year • Two further contract retentions
Slide 12: Contract retentions give confidence in the Local Government growth plan
12 Contract retentions give confidence in the Local Government growth plan 2025 2026 Medway Cross Keys (Peterborough) Annual value: £7m Annual value: £25m • c.50% of Mears’ traditional maintenance Term: 5 years Term: 10 years Relationship start: 2009 Relationship start: 2006 activities have been ren
Slide 13: Further progress in building maintenance-led capabilities
13 Further progress in building maintenance-led capabilities Traditional core competencies Systems, data & Use of Business Intelligence and Developing core AI to deliver and evidence Consumer standards Become Businessa competencies intelligence trusted compliance End to end retrofit compliance Futur
Slide 14: Central Government highlights
14 Central Government highlights RLAP and ARAP • RLAP contract continues to deliver excellent outcomes Continuing high levels of service being • Increasing optimism that contract extension to 2029 will be triggered • ARAP transit accommodation sites demobilised in FY25 as planned delivered, through
Slide 15: Continuing opportunities for growth as a housing specialist with Central Government
15 Continuing opportunities for growth as a housing specialist with Central Government Now Next Future AASC Asylum Accommodation and Support Contract RLAP Residential Living Accommodation Project ARAP Afghan Relocations and Assistance Policy CAS Community Accommodation Service SVMS Support for Victi
Slide 16: Current trading and outlook
16 Current trading and outlook Solid start to 2026 underpins full year confidence and underlying upgrade • Strong contract retentions, underpinned by outstanding operational delivery, increases confidence in Maintenance-growth target; 5-9% p.a. • The Board anticipates a continued revenue reduction w
Slide 17: Legal Disclaimer
17 Legal Disclaimer No representation or warranty, expressed or implied, is made or given by or on behalf of Mears Group PLC ( “the Company” and, together with its subsidiaries and subsidiary undertakings, “the Group”) or any of its Directors or any other person as to the accuracy, completeness or f