- Keller Group
- 05 August 2025 10:22:54
Source: Sharecast
Revenue for the six months ended 30 June was £1.46bn, down 2% year-on-year but up 1% on a constant currency basis.
Underlying operating profit declined 9% to £102.6m, with margin narrowing by 60 basis points to 7%.
The FTSE 250 company said its underlying earnings per share slipped 5% to 98.1p.
Statutory profit before tax fell 8% to £87.4m, while statutory diluted earnings per share dropped 3% to 91.8p.
The group, the world’s largest geotechnical specialist contractor, noted that its performance compared against a strong prior-year period and reflected a normalisation of conditions in North America, particularly at Suncoast, where pricing had moderated.
By contrast, Keller achieved profitable growth in its Europe, Middle East, and Asia-Pacific divisions.
Despite lower free cash flow and earnings, the board declared an interim dividend of 18.3p per share, up 10% on the prior year, and said it intended to apply a 5% increase to the total dividend for 2025.
Net debt stood at £61.5m on a bank covenant basis, up £32m since December, largely due to the first share buyback tranche and increased investment in working capital.
The group’s leverage ratio remained low at 0.2x EBITDA.
Keller’s order book remained strong at a record £1.6bn, as the board maintained its full-year outlook, despite an expected foreign exchange headwind in the second half.
“We have delivered a good first half performance against a strong comparative period, with underlying business performance remaining robust,” said chief financial officer David Burke.
“Our strong balance sheet provides us with flexibility, enabling organic growth as well as targeted mergers and acquisitions, along with further financial returns to shareholders with an increase to the interim dividend and an intention to launch an additional £25m share buyback in the second half.”
Burke added that, while geopolitical and macroeconomic volatility continued to pose challenges, Keller’s operational improvements, strong order book, and healthy tender pipeline supported confidence in delivering full-year expectations.
The company also confirmed that James Wroath was set to take over as chief executive on 18 August.
At 1001 BST, shares in Keller Group were up 5.61% at 1,392p.
Reporting by Josh White for Sharecast.com.
