Mears Group (MER) H2 2025 earnings summary

Executive summary

• Achieved excellent operational and financial performance with strong growth in maintenance-led activities and continued margin improvement.

• Secured £1.2bn in new maintenance orders over the last 12 months, with the order book reaching an all-time high of £4.0bn.

• Strategic acquisition of Pennington Choices expanded compliance capabilities; disposal of FM business post year-end to focus on core strategy.

Financial highlights

• Revenue stable at £1,135.5m (0% change year-over-year); adjusted operating profit up 2% to £64.8m.

• Adjusted operating margin increased to 5.7% from 5.6% year-over-year.

• Diluted EPS rose 10% to 53.9p, aided by a 10% reduction in share count.

• Proposed dividend up 9% to 17.5p.

• Free cash flow decreased to £28.3m from £57.1m, reflecting higher property acquisitions and shareholder returns.

Outlook and guidance

• Maintenance-led revenue expected to grow 5-9% per annum; management-led revenue to decline as AASC normalises.

• Adjusted operating margin guidance maintained at 5-6% for the medium term.

• Launch of a new £20m share buyback programme in FY26.

• Board confident in offsetting profit reduction from FM disposal with core business performance.