Serco Group plc · LSE:SRP
Serco — Investor Presentation (2026)
53 slides from Serco's investor presentation, Jul 22, 2026
Slide 1: Serco: the mission-critical partner to governments globally
Serco: the mission-critical partner to governments globally Investor briefing 2026
Slide 2: Bringing international best practice & private sector innovation to government services
Bringing international best practice & private sector innovation to government services Our Vision and Mission… Vision 4 Our Sectors The partner of choice to governments Justice & Citizen Health & globally Defence Immigration Services Other Facilities Transport Management Mission Bring together the
Slide 3: The essential role of the private sector in supporting governments
The essential role of the private sector in supporting governments And our sectoral mix sitsofacross Benefits usingthe the private sector key governmentto areas of spending deliver government services Structural drivers of demand continue to create need where we have expertise Flexibility Internatio
Slide 4: A global & sectoral footprint across the most attractive markets
A global & sectoral footprint across the most attractive markets Our international platform gives us reach into And our sectoral mix sits across the the world’s largest government services markets key government areas of spending North America UK & Europe FY25 revenue mix, including share of joint v
Slide 5: Long track record of delivery
Long track record of delivery Revenue (£bn) Underlying EPS (p) 4.9 16.93 3.2 7% >2.5x CAGR 6.16 increase 2019 2025 2025 2019 2025 Free cash flow (£m) Pipeline (£bn) 219 12.1 >£1bn >2 x cash 4.9 increase 62 generated 2019 2025 2025 2019 2025 5 All CAGRs & total cash generated cover six -year
Slide 6: Significant margin progress
Significant margin progress +2.3% 6.0% 6 5.7% 5.6% 5.2% 5.2% 5.1% 5 4.2% 4 3.7% 3 2 1 0 2019 2020 2021 2022 2023 2024 2025 2026 guidance Guidance Drivers for margin improvement: Improving performance Rigorous approach to Growth in Operational leverage of low -margin work operational efficiency highe
Slide 7: Our defence exposure is growing to more than 40% of the business
Our defence exposure is growing to more than 40% of the business Share of revenue incl. share of joint ventures (£bn / %) Rev. CAGR 3.64 4.25 4.66 4.77 5.35 5.29 5.39 7% 33% 30% 31% Defence 34% 34% 36% 39% 9% 18% J&I 16% 17% 25% 31% 33% 29% 18% Citizen Services 19% 26% 32% 23% 17% 16% 16% 3% Transpo
Slide 8: Full year 2025 highlights
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Slide 9: 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 ar
Slide 10: 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 10
Slide 11: Continued progress across execution priority areas
Continued progress across execution priority areas Growth Competitiveness Operational excellence New business win rate Productivity programmes – Successful acquisition 32 ↑ 7 percentage % points vs FY24 including right -sizing ASPAC and integration of MT&S £3.5bn defence contract wins Sharpening our
Slide 12: 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 Significant defence spending North America
Slide 13: An international platform, enabling critical government services globally
An international platform, enabling critical government services globally HY25 reflections FY25 prioritisation Key sectors Example capabilities include Key customers include Focus on areas with most opportunity Defence • Personnel services for growth Maximise our in - • Equipment & asset demand capa
Slide 14: Sector focus Defence
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Slide 15: 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 16: Defence: We have deep expertise in areas of growing demand
Defence: We have deep expertise in areas of growing demand Advisory & Acquisition Support Operations Design & Delivery Base Services & Logistics Expert guidance, including in the Delivery of key support services, freeing Architecture & design of vessels, Facilities management for military procuremen
Slide 17: Defence: Delivering full career lifecycle services for military personnel
Defence: Delivering full career lifecycle services for military personnel 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 transformational la
Slide 18: Defence: We continue to curate a targeted platform of capabilities
Defence: We continue to curate a targeted platform of capabilities - organically & through bolt-on acquisitions Personnel Asset Personnel Personnel Services Management Services Services Organic Recruit, train, & workforce JV with Engie to support UK Optimisation of US Army physical Next -gen recruit
Slide 19: Sector focus Justice & Immigration
Sector focus Justice & Immigration
Slide 20: 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 de
Slide 21: Justice & Immigration: UK and Europe continue to experience elevated migration flows
Justice & Immigration: UK and Europe continue to experience elevated migration flows In 2025, over 166,000 migrants were detected June 2025, net migration to the UK was crossing into Europe through five major routes recorded as 204,000 Western Mediterranean UK Entry 1 Via Morrocco into Spain 18,987
Slide 22: 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 23: Justice & Immigration: A pan-European platform
Justice & Immigration: A pan-European platform, equipped to support governments address future challenges A market -leader in the UK and Europe built via organic growth, supported by in -fill acquisitions Significant UK portfolio Acquired: 2022 Acquired: 2024 Delivering strong growth through operati
Slide 24: Sector focus Citizen Services
Sector focus Citizen Services
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 an
Slide 27: Disciplined risk management & strong opportunity pipeline
Disciplined risk management & strong opportunity pipeline
Slide 28: Largest new business pipeline in over a decade at ~£12.1bn
Largest new business pipeline in over a decade at ~£12.1bn New Business Pipeline, £bn 12.1 11.2 9.9 10.2 • Highest pipeline in over a decade 8.4 • High quality bids, aligned to the Group’s strategy 6.4 • ~50% of the pipeline sits in Defence, with a significant 4.9 portion of this in North America •
Slide 29: Contract retention and new business win rates
Contract retention and new business win rates FY25 New business and contract retention rates by value, % • Consistently strong win rates – retention >90% in four 98 94 91 92 of the last six years; new business >30% in four of last six years 74 • Win rates remaining robust even as pipeline has 64 gro
Slide 30: FY25 contract awards of £5.5bn – delivering a 114% book-to-bill
FY25 contract awards of £5.5bn – delivering a 114% book-to-bill Awards, £bn • 2025 Full Year awards of ~£5.5bn grew by ~13% 5.4 5.5 * 5.5 vs 2024 (£4.9bn) 4.9 4.6 • Second highest order intake in a decade with a 4.2 114% book -to-bill 3.1 • Over 60% of order intake in Defence • UK&E contributed 68%
Slide 31: Our strong order book provides a high level of visibility
Our strong order book provides a high level of visibility Orderbook, £bn • FY25 orderbook of £14.5bn grew by ~9% vs FY2024 (£13.3bn) 14.8 14.1 14.5 13.5 13.7 13.6 13.3 • Our order book definition gives our assessment of the future revenue expected to be recognised from the remaining performance obli
Slide 32: ROIC & EPS Over time
ROIC & EPS Over time ROIC, % EPS, p 16.67p 16.93 p 26.2% 25.9% 15.36p 23.7% 13.92 p 20.6% 21.4% 12.56 p 19.1% 15.4% 8.43 p 6.16 p 2019 2020 2021 2022 2023 2024 2025 2025 2019 2020 2021 2022 2023 2024 2025 32
Slide 33: Capital returns over time
Capital returns over time Share buyback & dividends, £m 178 • Strong capital allocation discipline with £172m dividend + £390m share buyback 124 120 since 2021 140 93 • Additional £75m buyback to be completed by 31 July 2026 90 90 50 • Strong balance sheet provides flexibility 47 for capital allocat
Slide 34: 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 n ature. All statements other than statements of historical fact are forward looking statements. Generally, words such as “expect”, “anticipate”,
Slide 35: 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 peri ods where relevant, revenue including that from any discontinued operations has been shown for consistency with previous guidance and disclos
Slide 36: 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 37: 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 38: 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 39: 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 - - 39
Slide 40: 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 impair
Slide 41: 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 42: 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 He
Slide 43: Cash flow breakdown
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 a
Slide 44: 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:
Slide 45: 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 46: 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 47: 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
Slide 48: 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 compani
Slide 49: 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 50: 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 — The FY25 ETR is reduced by one -off items in the year. Notable items include prior year adjustments for the rel
Slide 51: 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 52: 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 53: serco.com
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