Slide 1: Serco 2025 full year results
Serco 2025 full year results For 12 months ended 31 December 2025 5 March 2026
Slide 2: Agenda
Agenda Overview Anthony Kirby, Group Chief Executive Financial review Nigel Crossley, Group Chief Financial Officer Strategy & markets overview Anthony Kirby, Group Chief Executive Q&A 2
Slide 3: Overview
Overview Anthony Kirby, Group Chief Executive
Slide 4: Key messages
Key messages Strong full-year 2025 performance, well positioned for 2026 Revenue, profit & cash performance enabling further shareholder returns Defence platform is delivering Organic & inorganic investment drives exceptional awards, win rates, & pipeline Greater strategic focus on higher growth are
Slide 5: Strong 2025 performance; positive momentum into 2026
Strong 2025 performance; positive momentum into 2026 Revenue Underlying operating profit Free cash flow Order intake £4.9bn £272m £219m £5.5bn 3% ↑ at constant currency Delivering 5.6% margin 112% trading cash conversion 114% book-to-bill 5
Slide 6: Continued progress across execution priority areas
Continued progress across execution priority areas Growth Competitiveness Operational excellence New business win rate Productivity programmes – Successful acquisition ↑ 7 percentage 32% points vs FY24 including right-sizing ASPAC and integration of MT&S £3.5bn defence contract wins Sharpening our p
Slide 7: An award-winning business our colleagues, customers & investors can be proud of
An award-winning business our colleagues, customers & investors can be proud of Britain’s most Great British employers Military friendly employer admired companies Gold employer of Veterans Sector Winner (Support Services - Ranked 3rd People & Places) Stevie awards UK corporate mental Net-Zero chall
Slide 8: Sustained delivery over past five years
Sustained delivery over past five years Revenue (£bn) Underlying EPS (p) 4.9 16.93 3.9 á á 5% 8.43 2x CAGR increase 2020 2025 2020 2025 Free cash flow (£m) Pipeline (£bn) 219 12.1 á á 135 >£1bn ~2x 6.4 cash increase generated 2020 2025 2020 2025 8 All CAGRs & total cash generated cover five-year per
Slide 9: Financial review
Financial review Nigel Crossley, Group Chief Financial Officer
Slide 10: Financial overview
Financial overview FY25 FY24 Growth Revenue Revenue £4,877m £4,787m 2% Organic Inorganic 1% 2% (3%) 3% 3% Constant currency FX (1%) (2%) revenue growth Underlying Underlying operating profit £272m £274m (1)% operating profit Organic (3%) 4% 112% Inorganic 4% 8% FX (2%) (2%) Margin 5.6% 5.7% Trading
Slide 11: North America
North America Good organic growth, successful acquisition, pipeline more than doubled Year ended 31 December 2025 (£m) • Revenue +10% reported, +4% organic o Up: Defence sector underpinned organic growth, following significant order intake achieved in 2024 FY25 FY24 Total growth CFX growth o Success
Slide 12: UK & Europe
UK & Europe Strong order intake and sustained high retentions contribute to 6% revenue growth Year ended 31 December 2025 (£m) • Revenue +6% reported, +5% organic o Up: good organic growth supported by contract mobilisations in Defence and ramp-ups FY25 FY24 Total growth CFX growth in Citizen Servic
Slide 13: Asia Pacific
Asia Pacific Well positioned for a return to growth in the medium term Year ended 31 December 2025 (£m) • Revenue (18%) reported, (12%) organic o Up: on-contract growth in Defence and Justice o Down: successful transition out of onshore FY25 FY24 Total growth CFX growth immigration services and disp
Slide 14: Middle East
Middle East Strategic partnership and operational efficiencies enhancing our prospects Year ended 31 December 2025 (£m) • Revenue (18%) reported, (12%) organic o Up: demand for our defence support services and growth in fire and rescue services in Saudi Arabia FY25 FY24 Total growth CFX growth o Dow
Slide 15: Strong cash flow performance
Strong cash flow performance Cash conversion averaging over 100% for the last 7 years Year ended 31 December 2025 (£m) FY25 FY24 Underlying operating profit 271.6 273.5 Strong balance Capex and repayment of lease liabilities (187.7) (170.5) sheet supports capital allocation Depreciation and amortisa
Slide 16: Capital allocation
Capital allocation Continued progress against our framework supported by strong balance sheet Highly Capital-light Target leverage range of Context: cash generative business model 1-2x net debt to EBITDA Capital priorities Progress in 2025 1 Invest to support organic growth New bid investment, incre
Slide 17: Guidance for 2026
Guidance for 2026 2025 2026 Initial New Actual guidance guidance Revenue £4.9bn ~£5.0bn ~£5.0bn Organic sales growth 1% ~3% ~3% Underlying operating profit £272m ~£300m ~£300m Net finance costs £45m ~£50m ~£52m Underlying effective tax rate 23% ~25% ~25% Free cash flow £219m ~£160m ~£160m Adjusted n
Slide 18: Strategy & markets overview
Strategy & markets overview Anthony Kirby, Group Chief Executive
Slide 19: Structural demand drivers persist, in what can appear to be a fast-changing market
Structural demand drivers persist, in what can appear to be a fast-changing market Our sectors continue to benefit from Robust demand in our geographies as deficits near historic highs, structural growth drivers policy shifts and geopolitical tensions rise North America Significant defence spending
Slide 20: An international platform aligned to structural demand drivers
An international platform aligned to structural demand drivers Enabling critical government services globally HY25 reflections Key sectors Example capabilities include Key customers include Focus on areas with most opportunity Defence • Personnel services for growth Maximise our in- • Equipment & as
Slide 21: Defence: Our capabilities are essential as national security focus intensifies
Defence: Our capabilities are essential as national security focus intensifies Market dynamics Serco’s platform Growth opportunity Geopolitical tensions Footprint in largest Defence bids are over half driving rapid rearmament markets of pipeline all Five Eyes & several NATO with vast majority in N.
Slide 22: Defence: Delivering full career lifecycle services for military personnel
Defence: Delivering full career lifecycle services for military personnel 1 3 Recruitment Health, fitness Training & skills Housing & Transition & & readiness living support veterans support Prime contractor for Delivery of the “the In 2025, alongside Through our joint We support the transformationa
Slide 23: Justice & Immigration: Long-term immigration demand drivers continue
Justice & Immigration: Long-term immigration demand drivers continue, appetite for innovation in justice services Market dynamics Serco’s platform Growth opportunity Structural drivers continue Market-leading position Global best-practice in migration - climate, conflict across several European depl
Slide 24: Justice & Immigration: Delivering international best-practice across end-to-end services
Justice & Immigration: Delivering international best-practice across end-to-end Justice & Immigration services Immigration – from border security to integration, supporting governments to manage complex demands Accommodation Integration support Housing management Community & social inclusion & livin
Slide 25: Citizen Services: Customers seek efficiency & innovation as essential services are modernised
Citizen Services: Customers seek efficiency & innovation as essential services are modernised Market dynamics Serco’s platform Growth opportunity Efficiency focus Diverse, scalable solutions Transformation as budgets come under can adapt to meet demand programmes pressure seeking efficiency & improv
Slide 26: Citizen Services: People-delivered, technology-enabled essential services
Citizen Services: People-delivered, technology-enabled essential services A long track-record in using technology to enable efficient and improved outcomes… Center for Medicare and Medicaid Services • Robotic process automation utilised for over 10 years • Embedded AI to improve processing times and
Slide 27: Positioned to deliver on growth opportunities
Positioned to deliver on growth opportunities Market dynamics Structural demand drivers intensified by geopolitics, fiscal pressures and technology Serco’s platform In-demand capabilities create new opportunities; criticality of services limits impact of short-term shifts Growth opportunity Large, f
Slide 28: Key messages
Key messages Strong full-year 2025 performance, well positioned for 2026 Revenue, profit & cash performance enabling further shareholder returns Defence platform is delivering Organic & inorganic investment drives exceptional awards, win rates, & pipeline Greater strategic focus on higher growth are
Slide 29: Serco
serco
Slide 30: Appendix
Appendix
Slide 31: Forward-looking statements
Forward-looking statements This announcement contains statements which are, or may be deemed to be, “forward-looking statements” which are prospective in nature. All statements other than statements of historical fact are forward looking statements. Generally, words such as “expect”, “anticipate”, “
Slide 32: Notes and definitions
Appendix 1 Notes and definitions Revenue is as defined under IFRS, which excludes Serco’s share of revenue of its joint ventures and associates. In prior periods where relevant, revenue including that from any discontinued operations has been shown for consistency with previous guidance and disclosu
Slide 33: Revenue divisional analysis
Appendix 2 Revenue divisional analysis Revenue - growth composition FY25 vs FY24 FY24 FY25 Reported Acquisition/ Reported Constant £m Organic FX TOTAL Currency (Disposal) Currency Currency UK&E 2,445.9 5% 1% - 6% 2,582.1 2,575.3 North America 1,326.1 4% 9% (3%) 10% 1,463.2 1,505.1 Asia Pacific 799.4
Slide 34: Underlying operating profit (UOP) divisional analysis
Appendix 3 Underlying operating profit (UOP) divisional analysis Underlying operating profit and margin FY25 UOP FY24 UOP Change HY25 UOP Reported Constant Reported Reported Reported Constant Constant Reported Reported £m Currency Currency Margin Currency Margin Currency Currency Currency Margin UK&
Slide 35: Income statement – EPS and DPS
Appendix 4 Income statement – EPS and DPS £m FY25 FY24 HY25 Underlying operating profit (UOP) 271.6 273.5 145.8 Net finance costs (NFC) (44.8) (33.1) (19.4) Underlying PBT 226.8 240.4 126.4 Tax on UOP and NFC (51.6) (60.4) (27.5) Underlying PAT 175.2 180.0 98.9 Profit on disposal of subsidiary 4.7 -
Slide 36: Exceptional items
Appendix 5 Exceptional items £m FY25 FY24 HY25 Exceptional items: Goodwill impairment (Asia Pacific) - (114.5) - Exceptional items - (114.5) - Tax on exceptional items - - - Total exceptional items, net of tax - (114.5) - Memo: - Cash flow on exceptional items - - 36
Slide 37: Free Cash Flow and Trading Cash Flow
Appendix 6 Free Cash Flow and Trading Cash Flow £m FY25 FY24 HY25 Underlying operating profit (UOP) 271.6 273.5 145.8 Share of profit of joint ventures and associates (28.8) (22.8) (11.7) Depreciation, amortisation and impairment of owned assets 27.4 25.1 12.9 Depreciation, amortisation and impairme
Slide 38: Net debt and leverage
Appendix 7 Net debt and leverage £m FY25 FY24 HY25 Free cash flow 219.3 227.5 90.5 Net (acquisition) / disposal of subsidiaries and operations (250.7) (20.8) (245.7) Disposal related costs (2.3) - - Dividends paid to shareholders (43.3) (38.4) (28.6) Purchase of own shares (50.3) (141.3) - Capitalis
Slide 39: Focus on five sectors across four regions
Appendix 8 Focus on five sectors across four regions FY25 revenue mix, including share of JV&As* UK & North Asia Middle Serco £m Sector Europe America Pacific East Total Defence 798 1,084 183 32 £2,097m 39% Justice & 1,400 - 189 - £1,589m 29% Immigration Citizen 402 311 113 23 £849m 16% Services Hea
Slide 40: Cash flow breakdown 1 and breakdown 2
Appendix 9 Cash flow breakdown 1 and breakdown 2 £m FY25 FY24 HY25 Breakdown 1 – depreciation, amortisation and impairment Depreciation (excluding lease assets) 18.5 17.2 8.8 Amortisation (non-acquisition) 8.8 8.3 4.1 Depreciation and amortisation 27.3 25.5 12.9 Impairment of PPE (excluding lease as
Slide 41: Leverage covenant calculation
Appendix 10 Leverage covenant calculation £m FY25 FY24 HY25 Underlying operating profit (UOP) 271.6 273.5 276.9 Exclude: share of joint venture and associate post-tax profits (28.8) (22.8) (23.4) Exclude: foreign exchange credit on investing and financing arrangements (1.2) (2.1) (0.5) Add-back: non
Slide 42: Interest cover covenant calculation
Appendix 11 Interest cover covenant calculation £m FY25 FY24 HY25 Net finance costs (44.8) (33.1) (37.0) Other covenant adjustments to net finance costs 22.8 19.6 22.1 Exclude: foreign exchange credit on investing and financing arrangements 1.2 2.1 0.5 Exclude: net interest receivable on retirement
Slide 43: Balance sheet summary
Appendix 12 Balance sheet summary £m FY25 FY24 HY25 Goodwill 929.3 826.2 915.5 Other intangible assets (excluding leased assets) 162.2 101.4 173.6 Property, plant and equipment (excluding leased assets) 56.2 56.8 59.5 Contract assets, trade and other receivables 669.3 657.8 708.2 Inventories 20.0 24
Slide 44: Return on Invested Capital (ROIC)
Appendix 13 Return on Invested Capital (ROIC) £m FY25 FY24 HY25 Invested capital assets 1,871.1 1,691.4 1,903.4 Invested capital liabilities (752.0) (714.7) (746.2) Invested Capital (IC) 1,119.1 976.7 1,157.2 Average IC (two-point) 1,047.9 1,043.8 1,153.8 Underlying operating profit for rolling 12 m
Slide 45: Pension assets mix and IAS 19 valuation
Appendix 14 Pension assets mix and IAS 19 valuation £m FY25 FY24 HY25 Fair value of scheme assets - SPLAS Buy and maintain credit - 17.8 - Short-dated credit 36.5 31.9 35.4 Asset backed securities 60.2 38.0 64.5 LDIs 188.4 181.7 187.7 Private debt 136.9 143.5 134.6 Amounts held by insurance companie
Slide 46: Currency rates
Appendix 15 Currency rates Spot rate for FY26e Average rates Closing rates Assumed 31 Dec 30 Jun 31 Dec 30 Jun 31 Dec 30 Jun FY25 HY25 FY24 HY24 FY23 average 2025 2025 2024 2024 2023 2023 £:US$ 1.33 1.31 1.29 1.28 1.27 1.24 1.35 1.37 1.25 1.28 1.27 1.26 £:Aus$ 1.90 2.05 2.05 1.93 1.92 1.87 2.01 2.10
Slide 47: Tax
Appendix 16 Tax • FY25 underlying tax of £51.6m, on underlying profit before tax of £226.8m - effective tax rate (ETR) of 22.8% • Expect ETR to increase closer to ~25% in future periods o The FY25 ETR is reduced by one-off items in the year. Notable items include prior year adjustments for the relea
Slide 48: Net debt trend analysis
Appendix 17 Net debt trend analysis The trend of net debt in FY 2025 was significantly impacted by the acquisition of MT&S in May. The completion of the acquisition occurred at the same time as other discrete cash outflows such as the final ordinary dividend and balancing payments of VAT, which ampl
Slide 49: American Depositary Receipt (ADR) program
Appendix 18 American Depositary Receipt (ADR) program Serco Group has a sponsored Level 1 ADR program, for which Deutsche Bank act as the depositary bank and custodian Ticker: SCGPY Exchange: OTC CUSIP: 81748L209 For assistance with converting Ordinary Shares US ISIN: US81748L2097 into ADRs (or vice
Slide 50: serco.com
SEICO "iit serco.com