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An update from Serco Group plc ( (GB:SRP) ) is now available.
Serco reported 2025 revenue of £4.9bn, up 3% at constant currency, with underlying operating profit of £272m and a margin of 5.6%, while strong free cash flow of £219m and trading cash conversion of 112% underpinned a solid balance sheet with leverage at 0.7x. Order intake reached £5.5bn, roughly two‑thirds from defence, lifting the order book to £14.5bn and supporting an 8% dividend increase, a completed £50m buyback and a new £75m programme as the company leans into rising demand from governments under fiscal pressure.
Management highlighted an £12.1bn pipeline, more than doubling in North America, ongoing productivity initiatives to push margins toward 6% in 2026, and portfolio reshaping in Asia‑Pacific, including the sale of Hong Kong operations and the integration of MT&S. Serco reiterated 2026 guidance for about £5bn of revenue, ~3% organic growth and underlying operating profit of around £300m, signalling confidence that defence‑led growth, contract ramp‑ups and efficiency gains will sustain earnings and cash generation for shareholders and public‑sector clients alike.
The most recent analyst rating on (GB:SRP) stock is a Buy with a £370.00 price target. To see the full list of analyst forecasts on Serco Group plc stock, see the GB:SRP Stock Forecast page.
Spark’s Take on GB:SRP Stock
According to Spark, TipRanks’ AI Analyst, GB:SRP is a Outperform.
Serco Group plc’s overall stock score is driven by strong cash flow management and positive technical indicators. The earnings call provided a positive outlook with strong growth in key areas. However, the high P/E ratio suggests potential overvaluation, which tempers the overall score.
To see Spark’s full report on GB:SRP stock, click here.
More about Serco Group plc
Serco Group plc is an international outsourcer focused on providing mission‑critical services to governments worldwide. Operating across defence, space, migration, justice, healthcare, mobility and citizen services, the company delivers service design, advisory, complex programme management, systems integration, case management and facilities management through a workforce of more than 50,000 people.
Average Trading Volume: 2,885,632
Technical Sentiment Signal: Buy
Current Market Cap: £2.96B
See more data about SRP stock on TipRanks’ Stock Analysis page.