Kier Group PLC (GB:KIE)
LSE:KIE
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Kier Group plc
(LSE:KIE)
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Rating:71Outperform
Price Target:
224.00 p
▲(3.46% Upside)
Action:ReiteratedDate:03/03/26
The score is driven primarily by solid financial performance (especially cash flow strength) and a constructive earnings update with strong order-book visibility and improving cash position. This is moderated by leverage risk, near-term remediation charges and seasonal cash volatility, and only neutral technical momentum with the stock slightly weak versus its 20-day average.
Positive Factors
Record order book & framework coverage
A record £11.6bn order book (94% FY26, 78% FY27 coverage) and £150bn of framework positions materially increase revenue visibility and reduce near-term bidding risk. This durable backlog supports multi-period cash flow predictability, cross-selling and greater operational planning resilience.
Negative Factors
Elevated leverage and refinancing risk
Significant leverage raises interest and refinancing vulnerability; management noted existing bond carries a high coupon and refinancing timing/costs are uncertain. High debt constrains financial flexibility, increases financing costs and raises downside risk if cash generation weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Record order book & framework coverage
A record £11.6bn order book (94% FY26, 78% FY27 coverage) and £150bn of framework positions materially increase revenue visibility and reduce near-term bidding risk. This durable backlog supports multi-period cash flow predictability, cross-selling and greater operational planning resilience.
Read all positive factors
Kier Group plc (KIE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£879.13M
Dividend Yield3.19%
Average Volume (3M)1.76M
Price to Earnings (P/E)9.8
Beta (1Y)1.43
Revenue Growth4.40%
EPS Growth31.59%
CountryUK
Employees11,083
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.09
Shares Outstanding441,246,920
10 Day Avg. Volume1,487,632
30 Day Avg. Volume1,764,455
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)1.88
Price to Sales (P/S)0.24
P/FCF Ratio4.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£260.00Price Target Upside20.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.23
Revenue Forecast (FY)£4.27B
Kier Group plc Business Overview & Revenue Model
Company Description
Kier Group plc primarily engages in the construction business in the United Kingdom and internationally. The company operates through three segments: Construction, Infrastructure Services, and Property. It constructs power stations, roads, bridges...
How the Company Makes Money
Kier makes money primarily by contracting to deliver construction and infrastructure projects and being paid for completing works and services under customer contracts. Its revenues are mainly generated from (1) infrastructure and civil engineerin...
Kier Group plc Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 10, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive picture: record order book, revenue and profit growth, improved balance sheet (period-end net cash GBP 103m and achieved average net cash for the first time in 13 years), upgraded credit metrics, increased shareholder returns (dividend and buyback) and a substantial near-term pipeline across infrastructure, water, defence, health and education. Key challenges relate to a seasonally weak H1 cash position (GBP 42m free cash outflow), an elevated near-term charge for fire and cladding remediation (expected ~GBP 30m in FY26 and similar in FY27), modest H1 margin below the full-year target range and some temporary revenue timing impacts from the shift to modular construction. Management reiterated medium-term targets and expressed confidence in H2 conversion and continued cash generation, so on balance the positives outweigh the risks.Positive Updates
Record Order Book and Revenue Visibility
Order book at a record GBP 11.6 billion, up 5% vs June 2025; represents 94% coverage of FY26 revenue and 78% coverage of FY27 revenue, supported by GBP 150 billion of framework positions and a GBP 35 billion near-term pipeline.
Negative Updates
Fire and Cladding Remediation Costs
Adjusted items relating to fire and cladding amounted to GBP 10.7 million in the half; company expects around GBP 30 million charge for FY26 and a similar level in FY27 with resolution anticipated by end of FY28. Insurance recoveries are uncertain and recognized only when confirmed.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Order Book and Revenue Visibility
Order book at a record GBP 11.6 billion, up 5% vs June 2025; represents 94% coverage of FY26 revenue and 78% coverage of FY27 revenue, supported by GBP 150 billion of framework positions and a GBP 35 billion near-term pipeline.
Read all positive updates
Company Guidance
Kier reiterated that full‑year expectations are unchanged and reiterated medium‑term targets: adjusted operating margin 4.0–4.5% (HY margin 3.5%, +10bps year‑on‑year), revenue growth above GDP, circa 90% cash conversion of operating profit and dividend cover around 3x, while guiding adjusted fire-and-cladding costs of ~£30m in FY26 (a similar level in FY27, reducing thereafter and expected resolved by end FY28). Key metrics given were HY revenue up 2.6% to £2.029bn, adjusted operating profit £71m (up 6.6%), adjusted EBITDA £101m, period‑end net cash £103m and average net cash c.£16.8–17m (first positive average in 13 years), a record order book of £11.6bn (up 5%) covering 94% of FY26 and 78% of FY27 revenue, £150bn of framework positions and a £35bn two‑year pipeline; management also launched a new £25m buyback, raised the interim dividend to 2.6p, plans up to £225m property investment targeting 15% ROCE by FY28, refinanced a £190m RCF and holds S&P/Fitch ratings of BB+/BB+.Kier Group plc Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
65
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.12B | 4.08B | 3.91B | 3.38B | 3.14B | 3.26B |
| Gross Profit | 335.50M | 330.80M | 335.00M | 279.50M | 238.30M | 254.80M |
| EBITDA | 180.10M | 139.10M | 188.00M | 167.70M | 79.30M | 116.80M |
| Net Income | 60.70M | 56.40M | 42.70M | 41.10M | 12.70M | -300.00K |
Balance Sheet | ||||||
| Total Assets | 3.15B | 3.55B | 3.46B | 2.31B | 2.24B | 2.28B |
| Cash, Cash Equivalents and Short-Term Investments | 1.13B | 1.69B | 1.57B | 1.39B | 301.40M | 393.20M |
| Total Debt | 1.20B | 1.64B | 1.58B | 1.51B | 464.60M | 564.30M |
| Total Liabilities | 2.63B | 3.04B | 2.94B | 1.79B | 1.68B | 1.85B |
| Stockholders Equity | 520.90M | 517.30M | 520.20M | 513.40M | 555.20M | 436.20M |
Cash Flow | ||||||
| Free Cash Flow | 221.30M | 223.90M | 211.60M | 135.60M | 28.30M | 9.70M |
| Operating Cash Flow | 232.00M | 235.00M | 230.10M | 144.00M | 45.20M | 19.60M |
| Investing Cash Flow | -47.90M | -68.40M | -44.30M | -25.00M | -1.40M | 113.50M |
| Financing Cash Flow | -155.70M | -160.30M | -100.90M | -40.10M | -141.20M | -152.70M |
Kier Group plc Technical Analysis
Negative
216.50
Price Trends
226.19
Negative
221.79
Negative
211.10
Negative
Market Momentum
-7.03
Positive
33.50
Neutral
20.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KIE, the sentiment is Negative. The current price of 216.5 is below the 20-day moving average (MA) of 220.02, below the 50-day MA of 226.19, and above the 200-day MA of 211.10, indicating a bearish trend. The MACD of -7.03 indicates Positive momentum. The RSI at 33.50 is Neutral, neither overbought nor oversold. The STOCH value of 20.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:KIE.
Kier Group plc Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £1.36B | 8.23 | 23.46% | 3.08% | -1.17% | 12.31% | |
78 Outperform | £496.86M | 11.49 | 13.06% | 1.88% | -12.98% | 5.51% | |
73 Outperform | £1.98B | 12.50 | 24.53% | 2.49% | 6.93% | 21.50% | |
72 Outperform | £491.47M | 7.10 | 27.48% | 3.65% | 5.78% | -6.80% | |
71 Outperform | £879.13M | 9.81 | 11.69% | 3.19% | 4.40% | 31.59% | |
71 Outperform | £3.64B | 13.49 | 16.34% | 1.80% | 9.97% | -15.46% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
GB:KIE
Kier Group plc
203.00
82.48
68.43%
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Kier Group plc Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Kier Continues Buyback, Lifts Treasury Shares and Updates Voting Rights
Positive
Mar 20, 2026
Kier Group plc has continued its share buyback programme, repurchasing 250,000 ordinary shares between 16 and 20 March 2026 through Deutsche Bank’s London branch, with daily purchases of 50,000 shares at prices ranging from 201.50p to 217.00...
Regulatory Filings and Compliance
Kier Executives Acquire Shares Under Group Incentive Plan
Neutral
Mar 20, 2026
Kier Group plc has reported routine share dealings by senior executives under its Share Incentive Plan, with the plan trustee acquiring small volumes of ordinary shares on 18 March 2026 for three persons discharging managerial responsibilities. Gr...
Business Operations and Strategy
Kier Wins Major Role in UK’s Flagship STEP Fusion Energy Programme
Positive
Mar 16, 2026
Kier Group has been appointed, as co‑leader of the ILIOS consortium alongside Nuvia with support from AECOM, AL_A and Turner Townsend, as construction partner for the UK’s flagship Spherical Tokamak for Energy Production fusion energy...
Stock BuybackRegulatory Filings and Compliance
Kier Group Advances Share Buyback, Updates Voting Share Count
Positive
Mar 16, 2026
Kier Group plc has continued execution of its previously announced share buyback programme, repurchasing 50,000 ordinary shares on 13 March 2026 at prices between 213.50p and 217.00p, with a volume-weighted average price of 215.1735p. The shares, ...
Stock BuybackRegulatory Filings and Compliance
Kier Continues Buyback, Lifts Treasury Stock and Updates Voting Rights
Positive
Mar 13, 2026
Kier Group plc has continued its previously announced share buyback programme, purchasing 50,000 ordinary shares on 12 March 2026 through Deutsche Numis at prices between 214.50p and 218.50p per share. The company intends to hold these repurchased...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Kier continues buyback with further 50,000-share repurchase
Positive
Mar 12, 2026
Kier Group plc has continued executing its recently announced share buyback programme, repurchasing 50,000 ordinary shares on 11 March 2026 through Deutsche Bank’s London branch at prices between 213.50p and 221.00p, with a volume-weighted a...
Business Operations and StrategyExecutive/Board Changes
Kier grants performance-linked share awards to senior executives
Positive
Mar 11, 2026
Kier Group plc has granted new share awards to several senior executives under its 2020 Long-Term Incentive Plan, tying potential share vesting to performance conditions over a three-year period from July 2025 to June 2028. The awards, calculated ...
Stock BuybackRegulatory Filings and Compliance
Kier continues share buyback, updates voting rights count
Positive
Mar 11, 2026
Kier Group plc has continued its recently launched share buyback, repurchasing 50,000 ordinary shares on 10 March 2026 through Deutsche Numis at a volume-weighted average price of 216.9064 pence. The shares will be held in treasury, bringing total...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Kier Group Continues Share Buyback, Updates Voting Rights Total
Positive
Mar 10, 2026
Kier Group plc has continued its previously announced share buyback programme, repurchasing 50,000 ordinary shares on 9 March 2026 through Deutsche Numis at prices between 206.50p and 211.00p, with a volume-weighted average of 208.7776p. The compa...
Stock BuybackRegulatory Filings and Compliance
Kier Continues Buyback With Treasury Share Purchase
Positive
Mar 9, 2026
Kier Group plc has continued its recently launched share buyback programme, repurchasing 50,000 ordinary 1p shares on 6 March 2026 through Deutsche Numis at prices between 212p and 217p, with a volume-weighted average of 214.1254p. The company int...
Stock BuybackRegulatory Filings and Compliance
Kier repurchases 50,000 shares as buyback programme gathers pace
Positive
Mar 6, 2026
Kier Group plc has continued its recently launched share buyback programme, repurchasing 50,000 ordinary shares on 5 March 2026 through Deutsche Numis at prices between 216.50p and 222.00p, with a volume-weighted average price of 219.4612p. The co...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Kier Group Launches Share Buyback, Adjusts Voting Share Capital
Positive
Mar 5, 2026
Kier Group plc has initiated a share buyback programme, purchasing 50,000 ordinary shares on 4 March 2026 through Deutsche Numis at prices between 222p and 226p, with a volume-weighted average price of 224.0254p. The company intends to hold these ...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Kier Posts Strong First Half, Hits Net Cash Milestone and Launches New Buyback
Positive
Mar 3, 2026
Kier Group reported a strong first half to 31 December 2025, with revenue up 2.6% to just over £2bn and adjusted operating profit up 6.6%, lifting margins to 3.5%. The group reached an average net cash position for the first time in 13 years,...
Business Operations and StrategyStock BuybackFinancial Disclosures
Kier launches £25m share buyback to return capital to investors
Positive
Mar 3, 2026
Kier Group plc has launched a share buyback programme of up to £25m of its ordinary shares, announced alongside its interim results for the six months to 31 December 2025. The repurchased shares will be held in treasury, and the programme is ...
Executive/Board Changes
Kier Group Announces Change in Remuneration Committee Leadership
Neutral
Mar 3, 2026
Kier Group plc has announced that Non-Executive Director Margaret Hassall will retire from the board and step down as Chair of the Remuneration Committee on 29 May 2026. She will be succeeded by fellow Non-Executive Director Anne Baldock, who join...
Regulatory Filings and Compliance
Kier Executives Acquire Shares Under Group Incentive Plan
Neutral
Feb 20, 2026
Kier Group plc has reported routine share transactions under its Share Incentive Plan involving senior management. Group Commercial Director James Askew and Group Managing Director – Property Leigh Thomas each acquired 61 partnership shares ...
Regulatory Filings and Compliance
Kier Group Updates Market on Total Voting Rights
Neutral
Feb 2, 2026
Kier Group plc has reported that, as of 31 January 2026, its issued share capital consists of 452,875,390 ordinary shares of 1p each, of which 10,978,468 are held in treasury, leaving a total of 441,896,922 voting rights in the company. This updat...
Executive/Board ChangesRegulatory Filings and Compliance
Kier Executives Receive Shares Under Group Incentive Plan
Neutral
Jan 20, 2026
Kier Group plc has disclosed that, under its Share Incentive Plan, the plan trustee purchased ordinary shares in the company and allocated free matching shares to senior executives James Askew, Group Commercial Director, and Leigh Thomas, Group Ma...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Kier hits net cash milestone as record order book underpins FY26 outlook
Positive
Jan 20, 2026
Kier Group plc reported that trading for the six months to 31 December 2025 was in line with expectations, with its order book rising to a record £11.6bn and around 94% of forecast FY26 revenue already secured, underpinning strong revenue vis...
Regulatory Filings and Compliance
Kier Group Updates Market on Total Voting Rights
Neutral
Jan 2, 2026
Kier Group plc has confirmed that, as of 31 December 2025, its issued share capital consisted of 452,875,390 ordinary shares, of which 10,978,468 are held in treasury, leaving 441,896,922 voting shares in circulation. This updated total voting rig...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.