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Keller Group plc
(LSE:KLR)
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Rating:76Outperform
Price Target:
3,871.00 p
â–²(75.48% Upside)
Action:Reiterated
Date:07/09/26
Overall score is driven primarily by improving fundamentals and strong cash generation (consistent positive free cash flow and better leverage), supported by a positive earnings call featuring record performance, net cash, and enhanced shareholder returns. Technicals are bullish but very overextended (high RSI/Stoch), and valuation appears reasonable rather than clearly cheap, which tempers the score.
Positive Factors
Cash generation
Sustained operating cash flows and consecutive positive free cash flow since 2023 show durable cash conversion. This reliably funds maintenance CapEx, supports dividends and buybacks, and creates a financial buffer to absorb cyclical project timing swings without immediate external financing.
Negative Factors
Margin volatility / cyclical exposure
Variable margins reflect project mix, pricing pressure on fixed‑price work and sensitivity to input costs. That variability undermines earnings predictability, makes medium‑term margin sustainability less certain and increases forecasting risk across construction cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained operating cash flows and consecutive positive free cash flow since 2023 show durable cash conversion. This reliably funds maintenance CapEx, supports dividends and buybacks, and creates a financial buffer to absorb cyclical project timing swings without immediate external financing.
Read all positive factors
Keller Group plc (KLR) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.35B
Dividend Yield3.08%
Average Volume (3M)123.31K
Price to Earnings (P/E)17.0
Beta (1Y)0.68
Revenue Growth3.37%
EPS Growth2.19%
CountryUK
Employees10,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)2.03
Shares Outstanding69,297,935
10 Day Avg. Volume100,323
30 Day Avg. Volume123,305
Financial Highlights & Ratios
PEG Ratio3.25
Price to Book (P/B)1.83
Price to Sales (P/S)0.38
P/FCF Ratio6.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£3,133.33Price Target Upside42.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.46
Revenue Forecast (FY)£3.32B
Keller Group plc Business Overview & Revenue Model
Company Description
Keller Group plc provides specialist geotechnical services in North America, Europe, the Middle East, and the Asia-Pacific. The company offers ground engineering solutions, including ground improvement services, grouting, deep foundations, earth r...
How the Company Makes Money
Keller makes money primarily by contracting geotechnical construction services on a project-by-project basis. Revenue is generated from (1) executing specialty foundation works (e.g., piling and other deep/shallow foundation solutions) where it is...
Keller Group plc Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive set of operational and financial outcomes: record revenue and profit growth on a constant currency basis, sustained margins (7.1%), robust free cash flow (GBP 175.9m), and a return to net cash (GBP 59.7m). Management reinforced capital discipline while increasing shareholder returns (dividend +41.6% and a new GBP 100m buyback) and set out a measured approach to bolt-on M&A and organic growth. Key challenges include a YOY profit reduction in North America driven by Suncoast/residential weakness, a translational FX headwind (GBP 7.8m), and ongoing non-underlying programme costs (GBP 10.9m). Overall, the positives (record results, cash generation, stronger balance sheet, upgraded shareholder returns and diversified geographic resilience) materially outweigh the headwinds.Positive Updates
Record Financial Performance
Group delivered record 2025 results with revenue growth of 5.9% on a constant currency basis and underlying operating profit up 6.5% (constant currency). Underlying EPS increased 5.7% to 211.3p and underlying margin was held at 7.1%.
Negative Updates
North America Profit Reduction (Suncoast Exposure)
North America operating profit fell by GBP 17.7m year-on-year, driven by Suncoast's exposure to the weakened U.S. residential market and a loss of the exceptional pricing booster seen in H1 2024. Management expects pricing has normalized and volume remains the key driver going forward.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Financial Performance
Group delivered record 2025 results with revenue growth of 5.9% on a constant currency basis and underlying operating profit up 6.5% (constant currency). Underlying EPS increased 5.7% to 211.3p and underlying margin was held at 7.1%.
Read all positive updates
Company Guidance
Management guided that strong cash generation and disciplined capital allocation will continue to underpin growth: FY25 free cash flow was GBP 175.9m, the group moved to net cash of GBP 59.7m (IAS 17) for the first time in 25 years, gross CapEx was GBP 90.4m (around depreciation), and facility headroom is ~GBP 730m, enabling a further GBP 100m buyback in 2026 on top of two GBP 25m tranches (GBP 38.9m paid to 31 Dec); the Board keeps a leverage target of 0.5–1.5x, has adopted an enhanced dividend policy targeting cover of 2.5–3.5x (2025 cover 3x; total dividend 70.4p, final 52.1p, +41.6%), and expects margins to be sustainable (FY25 underlying margin 7.1%, underlying operating profit up ~6.5% CC, revenue +5.9% CC; North America revenue +5% vs market −2% with NA margins ~9%, EME targeting through‑cycle 5–6%, APAC expected to perform solidly); management reiterated selective bolt‑on M&A appetite, continued portfolio discipline, and will set out detailed growth plans at a Capital Markets Day in H2.Keller Group plc Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.09B | 2.99B | 2.97B | 2.94B | 2.22B |
| Gross Profit | 1.29B | 412.00M | 1.16B | 1.89B | 242.20M |
| EBITDA | 328.70M | 289.30M | 272.20M | 182.90M | 178.60M |
| Net Income | 142.70M | 142.30M | 89.40M | 46.00M | 56.50M |
Balance Sheet | |||||
| Total Assets | 1.83B | 1.79B | 1.68B | 1.70B | 1.45B |
| Cash, Cash Equivalents and Short-Term Investments | 281.50M | 202.70M | 151.40M | 101.10M | 82.70M |
| Total Debt | 310.40M | 334.60M | 388.70M | 400.00M | 276.00M |
| Total Liabilities | 1.18B | 1.19B | 1.16B | 1.21B | 1.01B |
| Stockholders Equity | 641.40M | 593.70M | 515.30M | 494.50M | 439.90M |
Cash Flow | |||||
| Free Cash Flow | 171.60M | 176.90M | 102.50M | -26.90M | 71.30M |
| Operating Cash Flow | 261.90M | 265.90M | 197.00M | 54.80M | 155.70M |
| Investing Cash Flow | -75.20M | -57.70M | -72.50M | -89.00M | -97.00M |
| Financing Cash Flow | -110.60M | -145.20M | -67.70M | 41.00M | -37.60M |
Keller Group plc Technical Analysis
Positive
2206.00
Price Trends
2556.57
Positive
2301.29
Positive
1952.78
Positive
Market Momentum
241.90
Negative
86.82
Negative
91.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KLR, the sentiment is Positive. The current price of 2206 is below the 20-day moving average (MA) of 2847.70, below the 50-day MA of 2556.57, and above the 200-day MA of 1952.78, indicating a bullish trend. The MACD of 241.90 indicates Negative momentum. The RSI at 86.82 is Negative, neither overbought nor oversold. The STOCH value of 91.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:KLR.
Keller Group plc Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £554.26M | 14.92 | 14.87% | 1.88% | -16.42% | 23.14% | |
76 Outperform | £2.35B | 16.97 | 23.46% | 3.08% | 3.37% | 2.19% | |
74 Outperform | £4.03B | 16.03 | 23.73% | 1.80% | 15.24% | 54.30% | |
73 Outperform | £2.23B | 12.75 | 24.53% | 2.49% | 10.39% | 32.54% | |
72 Outperform | £531.26M | 15.19 | 30.23% | 3.65% | 0.53% | -8.91% | |
71 Outperform | £911.40M | 15.93 | 11.69% | 3.19% | 2.50% | 40.96% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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154.03%
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Keller Group plc Corporate Events
Business Operations and StrategyStock Buyback
Keller Group Boosts Treasury Stock Through Continued Share Buyback
Positive
Jul 7, 2026
Keller Group plc has continued its share buyback programme, purchasing tranches of ordinary shares between 29 June and 3 July 2026 on the London Stock Exchange at volume-weighted average prices ranging from roughly 2,628p to 2,726p. The repurchase...
Business Operations and StrategyFinancial Disclosures
Keller lifts 2026 outlook on surging North American demand and record order book
Positive
Jul 7, 2026
Keller Group plc has issued a trading update ahead of its interim results, reporting that strong momentum from early 2026 has accelerated, particularly in North America. Record volumes and rising customer demand for infrastructure and data centre ...
DividendsRegulatory Filings and Compliance
Keller Group executive increases stake via dividend reinvestment
Positive
Jul 1, 2026
Keller Group plc reported that Peter Wyton, President for the Europe, Middle East (EME) region and a person discharging managerial responsibilities, acquired 1,600 ordinary shares through the company’s Dividend Reinvestment Plan. The shares ...
Regulatory Filings and Compliance
Keller updates total voting rights and share capital structure
Neutral
Jul 1, 2026
Keller Group plc, a leading geotechnical specialist contractor, delivers advanced foundation and ground improvement services to construction clients worldwide. With around 10,000 employees operating across five continents and handling roughly 5,50...
Business Operations and StrategyStock Buyback
Keller Group boosts treasury stock through June share buybacks
Positive
Jun 30, 2026
Keller Group plc has continued executing its previously announced share buyback programme, repurchasing ordinary shares on the London Stock Exchange between 22 and 26 June 2026 via Investec Bank plc. The company intends to hold these repurchased s...
Business Operations and StrategyStock Buyback
Keller boosts treasury stock with latest share buyback tranche
Positive
Jun 23, 2026
Keller Group plc has continued its ongoing share buyback programme, repurchasing ordinary shares between 15 and 19 June 2026 through Investec Bank at volume‑weighted average prices around 2,656p to 2,684p. The company intends to hold these s...
Business Operations and Strategy
Keller Group Adds RBC as Joint Corporate Broker to Bolster Market Support
Positive
Jun 19, 2026
Keller Group plc has appointed RBC Capital Markets as a joint corporate broker with immediate effect, expanding its existing advisory line-up alongside Investec Bank. The move underscores Keller’s focus on strengthening its capital markets a...
Stock Buyback
Keller Group Expands Treasury Stock with Latest Share Buyback Tranche
Positive
Jun 16, 2026
Keller Group plc has continued its previously announced share buyback programme, repurchasing tranches of its 10 pence ordinary shares on the London Stock Exchange between 8 and 12 June 2026 via Investec Bank. The shares bought during this period ...
Stock Buyback
Keller adds to treasury stock as share buyback programme advances
Positive
Jun 9, 2026
Keller Group plc, a leading global geotechnical contractor, offers a wide portfolio of specialist foundation and ground improvement techniques for infrastructure and construction projects worldwide. With operations spanning five continents and a l...
Business Operations and StrategyFinancial Disclosures
Keller wins major I-40 contract boost, lifting order book to record level
Positive
Jun 9, 2026
Keller Group plc has secured an additional contract variation worth $207m for its work on the reconstruction of the I-40 highway in the U.S., extending a series of work packages it began in 2025. This brings the total value of Keller’s I-40-...
Business Operations and StrategyStock Buyback
Keller Tightens Share Capital with Further Buybacks Held in Treasury
Positive
Jun 2, 2026
Keller Group has continued to execute its previously announced share buyback programme, repurchasing tranches of ordinary shares between 25 May and 29 May 2026 on the London Stock Exchange via Investec Bank. The company intends to hold these repur...
Regulatory Filings and Compliance
Keller Group Updates Total Voting Rights and Share Capital Structure
Neutral
Jun 1, 2026
Keller Group plc has confirmed that as of 29 May 2026 its total issued share capital is 73,099,735 ordinary shares of 10p each, of which 3,406,830 are held in treasury. This leaves 69,692,905 ordinary shares carrying voting rights, a figure shareh...
Business Operations and StrategyStock Buyback
Keller Group Adds to Treasury Stock with Latest Share Buyback
Positive
May 27, 2026
Keller Group plc has continued to execute its previously announced share buyback programme, repurchasing ordinary shares of 10 pence each on the London Stock Exchange between 18 and 22 May 2026 through Investec Bank plc. The transactions were carr...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsShareholder Meetings
Keller Wins Strong Shareholder Backing at 2026 AGM
Positive
May 20, 2026
Keller Group plc reported that shareholders approved all resolutions at its 2026 annual general meeting in London, with 73.14% of eligible votes cast, underscoring strong investor engagement. The meeting confirmed the receipt of the annual report,...
Business Operations and StrategyStock BuybackFinancial Disclosures
Keller Group posts strong start to 2026, boosts buybacks as order book grows
Positive
May 20, 2026
Keller Group reported a strong start to 2026, with trading in the first four months ahead of last year and in line with internal expectations, driven particularly by robust performance in its North American foundations business. The company said i...
Business Operations and StrategyStock Buyback
Keller Group Expands Treasury Stock with Latest Share Buyback
Positive
May 19, 2026
Keller Group plc has continued its previously announced share buyback programme, repurchasing ordinary shares with a nominal value of 10 pence each between 11 May and 15 May 2026 through Investec Bank. The company intends to hold these repurchased...
Business Operations and StrategyStock Buyback
Keller Group Steps Up Share Buyback, Holding More Shares in Treasury
Positive
May 12, 2026
Keller Group plc has continued its share buyback programme, repurchasing ordinary shares between 5 and 8 May 2026 on the London Stock Exchange through Investec Bank plc. The company intends to hold these shares in treasury, leaving 3,181,967 treas...
Executive/Board Changes
Keller Director Annette Kelleher Takes Non-Executive Role at Coats Group
Positive
May 6, 2026
Keller Group plc, the world’s largest geotechnical specialist contractor serving the global construction sector with advanced foundation and ground improvement solutions, operates across five continents with around 10,000 employees and annua...
Business Operations and StrategyStock Buyback
Keller Group boosts treasury stock with latest share buyback
Positive
May 6, 2026
Keller Group plc has continued its previously announced share buyback programme, repurchasing ordinary shares between 27 April and 1 May 2026 on the London Stock Exchange at volume‑weighted average prices slightly above 2,200 pence. The comp...
Regulatory Filings and Compliance
Keller Group Updates Share Capital and Voting Rights for Investors
Neutral
May 1, 2026
Keller Group plc has reported that, as of 30 April 2026, it has 73,099,735 ordinary shares in issue, of which 2,990,461 are held in treasury, leaving 70,109,274 voting rights in its ordinary shares. This updated share and voting-rights figure prov...
Business Operations and StrategyStock Buyback
Keller advances share buyback, increasing treasury stock holdings
Positive
Apr 28, 2026
Keller Group plc has continued its previously announced share buyback programme, repurchasing tranches of its 10 pence ordinary shares on the London Stock Exchange between 20 and 24 April 2026. The purchased shares, acquired at volume-weighted ave...
Business Operations and StrategyStock Buyback
Keller Adds to Treasury Stock Through Ongoing Share Buyback
Positive
Apr 21, 2026
Keller Group plc has continued to execute its previously announced share buyback programme, repurchasing ordinary shares on the London Stock Exchange between 13 and 17 April 2026 at volume‑weighted average prices ranging from about 2,140p to...
Regulatory Filings and Compliance
Keller Discloses Share Sale by APAC President Deepak Raj
Neutral
Apr 14, 2026
Keller Group plc has disclosed that Deepak Raj, its President for the Asia-Pacific region and a person discharging managerial responsibilities, sold 26,601 ordinary shares in the company at £21.40 per share. The transaction, executed on 13 Ap...
DividendsShareholder Meetings
Keller Group Sets 2026 AGM and Confirms Final Dividend Timetable
Positive
Apr 14, 2026
Keller Group plc has called its 2026 Annual General Meeting for 10:00 a.m. on 20 May 2026 at its London headquarters, with the AGM notice, proxy forms, and the 2025 Annual Report and Accounts now distributed to shareholders and available online an...
Stock Buyback
Keller adds to treasury stock with latest share buybacks
Positive
Apr 14, 2026
Keller Group plc has continued to execute its share buyback programme, repurchasing a total of 45,308 ordinary shares between 7 and 10 April 2026 on the London Stock Exchange at volume-weighted average prices ranging from about 2,001p to 2,139p. T...
Business Operations and StrategyExecutive/Board Changes
Keller Mourns Former CEO Michael Speakman After His Passing
Negative
Apr 9, 2026
Keller Group plc has announced the death of former chief executive Michael Speakman, who passed away on 3 April 2026 after stepping down from the role in August 2025 to continue medical treatment. Speakman, who joined Keller as chief financial off...
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.