Keller Group plc (01K) Q2 2026 Earnings Report

The call conveyed a strongly positive operational and financial picture: double-digit revenue growth, notable profit and EPS uplift, a record order book and clear exposure to fast-growing subsectors (notably data centers). These positives are tempered by localized softness (Miami multifamily, parts of Europe and Australia), working capital pressure from large projects and ongoing ERP/transformation costs. On balance the company reported material progress on growth, margins and capital returns while retaining balance sheet headroom.

The group reaffirmed guidance to meet its recently upgraded FY‑26 market expectations, flagging H2 weighting to results and a similar cash profile to 2025, and expressed confidence in sustaining margins above 7% (H1 margin 7.3%) on the back of strong momentum (H1 revenue +11% cc; underlying operating profit +17.1% cc; underlying EPS +22%). They expect to be roughly £30m net cash at year‑end after buybacks (IAS17 net debt at H1 £15.9m), have completed £32.4m of a £100m buyback, and retain c. £655m of funding headroom to support organic and inorganic opportunities. Capital allocation guidance remains: prioritise working capital and CapEx, maintain dividends (interim 28.7p, +57%; full‑year policy 2.5–3.5x cover, assuming 3x with 35% paid at interim), then M&A and further buybacks; ERP pilot is planned in Canada early 2027, no material claims settlements expected, and the healthy order book (North America £1,367.9m including multiyear I‑40; group ~£1.94bn) and tender pipeline underpin a positive H2 outlook.