Kier Group lifts dividend, updates medium-term targets on strong FY26; shares up

Kier Group reported a 7.5% year-on-year revenue growth of £4.39 billion for the fiscal year ending June 30, 2026, with adjusted operating profit rising 6.7% to £169.8 million. The company achieved an average net cash position for the first time in over a decade, with operating free cash flow growing to £206 million, well above its 90% medium-term target.

Kier's shares rose 3.4% in London trading following the announcement. The company also proposed an 8% increase in its full-year dividend to 7.8p per share and completed a £25 million share buyback. Looking ahead, Kier set updated medium-term targets, including mid-single-digit revenue growth, an adjusted operating margin of 4.0-4.5%, cash conversion above 90%, average net cash above £200 million by fiscal 2029, and double-digit adjusted EPS growth.

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