Hargreaves Services (HSP) H2 2025 earnings summary

Executive summary

• Group revenue increased 25% year-over-year to £264.4m, with strong growth across services, land, and the German joint venture (HRMS).

• Services segment delivered 20% revenue growth, margin improved to 6.5%, and recurring growth supported by new contract wins.

• Land segment completed major plot sales at Blindwells, generating £13.8m, and advanced renewables portfolio.

• HRMS joint venture stabilized with improved margins and positive movements in commodity pricing.

• Board increased dividend by 3% to 37.0p, reflecting commitment to shareholder returns.

Financial highlights

• Group EBITDA rose 29.1% to £33.7m; underlying profit before tax up 4% to £17.6m.

• Services revenue reached £244.3m (+19.7%), Land revenue £20.1m (+187.1%), HRMS profit after tax £4.1m (+215.4%).

• Services profit before tax increased to £15.9m from £11.4m.

• Net cash position at year-end was £23.3m, with no bank borrowings.

• Underlying EPS rose 18.3% to 45.2p.

Outlook and guidance

• Over 70% of next year’s Services revenue already secured under contract, supporting confidence in sustainable profits.

• Land business expected to release £80m in cash over the next few years as assets are sold down.

• Trading outlook for FY26 is strong, led by Services and Land, with further realisations expected at Blindwells and renewables.

• HRMS expected to continue improvement, with focus on cash returns.

• Anticipated news flow includes renewable asset sales, infrastructure project wins, and further land sales.