Galliford Try (GFRD) H2 2025 earnings summary

Executive summary

• Revenue increased by 6.3% year-over-year to £1.9 billion, marking the fifth consecutive year of growth, with strong performance in both building and infrastructure divisions.

• Divisional operating margin reached 3%, achieving the 2026 target one year early.

• Adjusted profit before tax rose 28.6% to £45 million, and adjusted EPS increased by 16.2% to £0.344.

• Record order book of £4.1 billion, with 92% of current year and 75% of next year’s work secured, and 93% repeat clients.

• Announced a £10 million share buyback and a 22.6% increase in full-year dividend to £0.19 per share.

Financial highlights

• Adjusted operating profit grew by 37.2% to £40.6 million.

• Average month-end cash increased 15.4% to £179 million, with year-end cash at £237 million.

• No drawn bank debt or pension liabilities; strong cash conversion and disciplined working capital management.

• Dividend cover maintained at 1.8x EPS, with £27.5 million returned to shareholders in the period.

• No exceptional items in FY25; prior year included a £10.1 million tax credit.

Outlook and guidance

• Confident in delivering further margin and profit growth in 2026, with continued progress toward 2030 targets of at least £2.2 billion revenue and 4% operating margin.

• Strong visibility with 75% of 2027 work already secured; robust pipeline in public and regulated sectors.

• Margin expansion expected to accelerate toward 2030, driven by specialist high-margin businesses and operational efficiencies.