Kier Group Plc · LSE:KIE
Kier — FY2025 Earnings Presentation
42 slides from Kier's earnings presentation, Sep 16, 2025
Slide 1: Results for the year ended 30 June 2025
Results for the year ended 30 June 2025 16 September 2025 Luton & Dunstable Hospital
Slide 2: Disclaimer
Disclaimer No representation or warranty, express or implied, is made or given by or on behalf of Kier 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 fairness of th
Slide 3: Results Summary
Results Summary Andrew Davies Chief Executive Sandy Lane, Northamptonshire
Slide 4: FY25 Highlights
FY25 Highlights ▪ Record order book, at £11.0bn, providing significant revenue visibility over FY26 (91%) and beyond ▪ Continued solid revenue growth of 3%, with profit levels ahead of initial expectations ▪ Free cash flow of £155m drives further de-leveraging and balance sheet strength with cash co
Slide 5: Track record of delivery
Track record of delivery Significant progression in operational delivery reflected in results Note: (1) FY21 EPS normalised for June 2021 equity raise Note (2) Total of reported month-end net debt, KEPS and HMRC debt FY25 Results, 16 September 2025 5
Slide 6: FY25 Results
FY25 Results Simon Kesterton Chief Financial Officer Watford Riverwell
Slide 7: Financial Highlights
Financial Highlights Revenue growth of 3% driven by continued momentum in Infrastructure £’m FY25 % FY24 % Δ ▪ Revenue growth driven by strong Revenue performances across the Group 4,087.8 3,969.4 3.0% Adjusted Operating Profit 159.1 3.9 150.2 3.8 5.9% ▪ Adjusted operating profit margin of 3.9% Net
Slide 8: Revenue Performance
Revenue Performance Significant growth in Infrastructure Services £’m 3% ▪ Overall revenue growth of 3% ▪ Infrastructure: benefiting from growth in Water and Nuclear projects 148 3 4,088 ▪ Construction: delivery of MoJ (32) projects partly offset by exit of lower margin HM contracts 3,969 ▪ Property
Slide 9: Adjusted Operating Profit
Adjusted Operating Profit Profit increased 6% on management actions and H2 property recovery £’m 6% ▪ Adjusted operating profit margin of 3.9% (progressing well to long term target range) 11.6 159.1 6.0 ▪ AOP benefits from: 150.2 0.6 ▪ Property transactions (9.3) ▪ Management cost actions ▪ Partiall
Slide 10: Adjusting Items (excl. amortisation)
Adjusting Items (excl. amortisation) Significant reduction in cash adjusting items £’m FY25 FY24 Adjusting items Fire / cladding costs 17.0 15.0 ▪ Fire and cladding compliance Property-related items 4.8 7.2 costs of £17m relate to updated regulations on legacy projects Recycle of foreign exchange -
Slide 11: Our access to UK Infrastructure via Frameworks
Our access to UK Infrastructure via Frameworks FY25 Results, FY25 Results, 16 16 September September 2025 2025 11
Slide 12: Growth underpinned by order book and frameworks
Growth underpinned by order book and frameworks Order book of £11bn provides clear multi-year revenue visibility ▪ 91% of FY26 and c.70% of FY27 revenue secured ▪ Longer term, revenue growth underpinned by £156bn* of framework positions ▪ Long term UK Government commitment through 10 year Infrastruc
Slide 13: Free Cash Flow
Free Cash Flow Strong operational performance resulting in above target operating cash conversion of 125% £’m FY25 FY24 ▪ Adjusted operating cash Adjusted EBITDA 227.9 208.1 flow conversion of 125% significantly above long- Working capital inflow 27.7 68.4 term growth target (90%) Net capital expend
Slide 14: Net Cash Movement
Net Cash Movement Free cash flow of £155m allocated in accordance with the Group’s priorities £’m 155 (18) (8) (24) (51) 204 (16) (1) 167 FY24 Free Adjusting Pension Dividends Investment Purchase of Other FY25 Cashflow items deficit paid in Property own shares(1) payments and fees Note 1: Includes £
Slide 15: Average Month-End Net Debt
Average Month-End Net Debt Near-term pathway to sustainable average month-end net cash position £582m ▪ FY21 to FY25 significant reduction in average month-end net debt, to £49m ▪ FY26 – expected further improvement from free Average debt YoY £m cash flow £286m £232m £116m £49m FY21 FY22 FY23 FY24 F
Slide 16: Financing and liquidity
Financing and liquidity Access to debt capital markets supports sustainable growth strategy £’m Maturities by calendar year 300 250 ▪ £400m of facilities in place: ▪ £250m Senior Loan Notes due February 2029 200 ▪ £150m RCF to March 2027 150 100 50 0 2026 2027 2028 2029 Senior Notes RCF FY25 Results
Slide 17: Capital allocation
Capital allocation Recurring cashflow and efficient use of balance sheet provide opportunities to create value through focused capital allocation Capital allocation 1 Capex ▪ Ongoing investment to support the business ▪ Sustainable policy increasing through earnings growth 2 Ordinary dividend ▪ Targ
Slide 18: Shareholder Returns
Shareholder Returns Strong performance and revenue visibility allow for increased shareholder returns ▪ Continued growth in the order book and revenue visibility ▪ Proposed dividend represents earnings cover of 3x in line with our long-term policy ▪ Payment ratio: approximately one third interim div
Slide 19: Operational Update
Operational Update Andrew Davies Chief Executive Alderney Water Treatment Works
Slide 20: Infrastructure Services Commercial & Operational Update
Infrastructure Services Commercial & Operational Update Growth driven by Water opportunities ▪ Secured our first contracts on Southern Water’s AMP8 framework, working on clean and £’m FY25 FY24 Δ wastewater schemes totalling c. £45m. Revenue 2,136 1,988 7.4% Adjusted Operating Profit 111.0 112.3 (1.
Slide 21: Water Operations
Water Operations Significant opportunities through AMP 8 investment cycle ▪ Significantly increased AMP8 investment determination of £104bn1 ▪ Awarded places on 17 Frameworks supporting 9 customers worth c.£15bn ▪ Water revenues set to double by 2030, including additional opportunities from natural
Slide 22: Construction Commercial & Operational Update
Construction Commercial & Operational Update Underlying growth in strategic projects ▪ Significant awards: ▪ Justice - Awarded a >£100m contract to £’m FY25 FY24 Δ deliver additional prison places at HMP Revenue Northumberland, as part of the Small Secure 1,911 1,908 0.1% Houseblocks (SSHP) Alliance
Slide 23: Property
Property Recapitalisation starting to deliver returns, on track to achieve 15% target by FY28 £’m FY25 FY24 Δ Commercial & Operational Update Revenue 38 71 (45.9%) Adjusted Operating Profit ▪ Activity: 12.2 6.2 96.8% ▪ Planning secured for: Operating margin 31.8% 8.7% 2310 bps ▪ Six Trade City indus
Slide 24: Sustainability Framework
Sustainability Framework Building for a Sustainable World Key focus areas: Our People – we will build a workforce with the necessary skills and capabilities whilst ensuring fair and equal treatment for our entire workforce Our Places – we aim to leave a positive legacy in the communities we work in
Slide 25: Environmental
Environmental On track for a net zero future by 2039 for scope 1 & 2 emissions Carbon Waste ▪ Carbon – 4% reduction in scope 1 • Waste – 3% year on year reduction & 2 carbon in 2025 in the waste intensity(1) from 16.8 in FY24 to 16.3 in FY25 Note 1: Waste intensity: tonnes of waste per £1m of revenu
Slide 26: Social
Social In FY25 we delivered over £500m of social value to the communities which we serve Safety Apprenticeships SME Spend Supply Payment Days ▪ 12-month AIR 115 a 26% ▪ 590 apprentices ▪ >60% of subcontractor ▪ Average 34 supplier reduction vs FY24 spending with SMEs payment days ▪ >10% of total wor
Slide 27: Long-term sustainable growth plan
Long-term sustainable growth plan Long-term targets to drive shareholder value and superior margins ▪ Revenue: GDP + through the cycle ▪ Adjusted operating margin target: 4.0-4.5% ▪ Cashflow conversion of operating profit c.90% ▪ Balance sheet: average net cash Natural position with investment of su
Slide 28: Summary and Outlook
Summary and Outlook 1 Strong operational and financial performance, with margins progressing well towards recently increased long term target of 4.0 to 4.5% 2 Excellent visibility of future performance, through strong order book: £11bn and £156bn of framework positions 3 Significant increase in shar
Slide 29: v, | a o
4 v, | a o
Slide 30: Appendix
FY25 Results 16 September 2025 Appendix Bletchley Super Depot
Slide 31: Our investment case
Our investment case Value accretive Attractive Experienced earnings-led business Strong order book market positions management team model Delivering sustainably Focused on UK Infrastructure Underpinned by long-term Proven track record stronger returns Services and Construction, contracts and framewo
Slide 32: Our business model
Our business model Strong cashflow generation allows disciplined investment of cash Construction Natural Resources, Transportation Property Nuclear & Networks Urban Regeneration Delivers public and private Repairs, maintains and Designs, builds and Invests and develops sites: sector projects for: de
Slide 33: Kier's journey
Kier’s journey Rationalised, recapitalised and growing business. Focused on accelerating growth and returns 2019 2020 2021 2022 2023 2024 2025 + through the cycle April 2019 March 2020 May 2021 2022 - 2023 March 2024 2025 + New CEO, New senior Refinancing Delivering against medium-term value Refinan
Slide 34: Kier's Strategic Framework
Kier’s Strategic Framework Our strategy focuses on leveraging our attractive market positions to sustainably PURPOSE To sustainably deliver infrastructure deliver infrastructure which is vital to the which is vital to the UK UK. VISION To be the UK’s leading infrastructure services and construction
Slide 35: Macro environment
Macro environment Economic and political factors provide supportive environment for growth Economic, Regulatory and Political Landscape Short term A move away from globalisation, as well as a need for increased productivity and growth, driving political and economic decision-making. Economic and pol
Slide 36: Government agenda vs our abilities
Government agenda vs our abilities Well-placed to support government priorities Government priorities Our abilities We operate on 125 frameworks regionally and nationally Kickstart economic growth across economic and social infrastructure Experience on strategic frameworks across economic and 10-yea
Slide 37: UK Government and regulated industry priorities
UK Government and regulated industry priorities UK Infrastructure Strategy – commitment to spend at least £725bn over next 10 years Infrastructure Services Transportation and Natural Resources, Nuclear & Networks - 52% of Revenue (FY25) Roads and Rail Water and Environment Energy £25bn Road Investme
Slide 38: UK Government spending commitments
UK Government spending commitments Focused on schools, hospitals, housing, prisons and defence Construction & Property 48% of Revenue (FY25) Housing Urban Education Healthcare Justice & Borders Defence Maintenance Regeneration DfE – launched CF25 New Hospital 10-year plan worth Government Retrofitti
Slide 39: Framework positions
Framework positions Maintaining and growing central and local framework positions ▪ Awarded places on long-term frameworks and contracts worth up to £156bn* ▪ Supports long-term revenue growth streams, underpinning strong order book ▪ Provides barriers to entry and strengthens customer relationships
Slide 40: Pension
Pension Net pension scheme asset of £47m £’m Jun 25 Jun 24 Δ ▪ As at 30 June 2025, Group’s pension Group Pension Schemes scheme asset was £47m Market value of assets 1,135.2 1,218.6 (83.4) Present value of liabilities (1,088.0) (1,138.1) 50.1 ▪ Decrease due to lower than assumed asset returns, parti
Slide 41: Group Revenue Analysis
Group Revenue Analysis Total 14% 21% 8% 4% 5% 1% 13% 7% 12% 3% 5% 6% 1% 3% Infrastructure 26% 39% 15% 8% 10% 2% Services Construction 28% 15% 26% 7% 11% 13% Property 7% 11% 51% 31% Highways Rail Water Nuclear & Energy Environment Other Education Healthcare Justice & Borders Defence Other Public Comm
Slide 42: Segmental Revenue Analysis
Segmental Revenue Analysis Infrastructure Services Total 26% 39% 15% 8% 10% 2% Transportation 40% 60% Natural Resources, 44% 24% 29% 3% Nuclear & Networks Highways Rail Water Nuclear & Energy Environment Other Construction Total 28% 15% 26% 7% 11% 13% Regional Build 31% 17% 22% 8% 8% 14% Kier Places