Mitie Group (MTO) H1 25/26 earnings summary

Executive summary

• Achieved double-digit revenue growth for the fifth consecutive half-year, with H1 FY26 revenue up 10.4% to £2,677m, outpacing the market and supported by 6.4% organic growth and acquisitions, notably Marlowe.

• Operating profit before other items rose 7.6% to £108.8m, with EPS up 5.6% to 5.7p per share; interim dividend increased by 7.7% to 1.4p.

• Integration of Marlowe progressing well, positioning the group as a leader in UK Facilities Compliance and supporting expansion into water services.

• Record contract awards (£3.8bn), order book up 31% year-over-year to £16.5bn TCV, and a robust pipeline of £33bn TCV.

• Strategic focus on core FM, projects, M&A, and AI-driven efficiencies underpins margin enhancement and future growth.

Financial highlights

• Organic revenue growth of 6.4% in H1, with acquisitions contributing an additional 4%.

• Free cash inflow of £51.9m; average daily net debt at £332m, closing net debt at £471m.

• ROIC at 16.3%, temporarily reduced due to Marlowe acquisition, expected to recover.

• Margins maintained at just over 4% despite inflation and NI headwinds.

• TSR since capital markets event at 68%, with EPS compounding at 18% per year.

Outlook and guidance

• FY26 EBIT guidance confirmed at £260m; free cash flow expected to exceed £120m.

• Double-digit revenue growth expected to continue in H2, with higher margins and growing EPS despite increased finance costs.

• ROIC anticipated to return toward 20% as Marlowe integration matures.

• On track to deliver FY27 targets and sustain growth into FY28, with management confident in exceeding FY27 revenue target of £5.6bn.

• Strategic plan targets operating margin above 5% and annual free cash flow of £150m by FY27.