Mitie Group (MTO) H2 2025 earnings summary

Executive summary

• Delivered double-digit revenue and operating profit growth in FY25, with revenues up 12.9% to £5.1bn and operating profit up 11.4% to £234.1m, marking strong progress in the first year of the FY25–FY27 Strategic Plan.

• Achieved record contract wins and renewals, with a 35% increase in order book to £15.4bn and a 27% rise in bidding pipeline to £23.7bn, supported by three infill acquisitions.

• Announced the acquisition of Marlowe PLC for £366m, positioning as a leader in facilities compliance and targeting high single-digit EPS accretion by FY28.

• Strong free cash flow generation of £143m supported record shareholder returns, capital deployment, and funded acquisitions.

Financial highlights

• Revenue rose 12.9% year-over-year to £5,091m, with organic growth of 8.5% and all divisions contributing positively.

• Operating profit before other items increased 11.4% to £234.1m; margin stable at 4.6% due to investments.

• EPS increased 3.3% to 12.7p, with profit growth and buybacks offset by higher tax and interest; total dividend up 7.5% to 4.3p per share.

• Free cash flow of £143m, supporting £100m share buybacks, £64.6m dividends, and £57.3m in acquisitions.

• Net assets at £428m after significant capital returns; average leverage ratio at 0.8x, closing net debt at £199m.

Outlook and guidance

• On track to deliver FY27 targets: high single-digit revenue growth, operating margin above 5%, EPS growth above revenue, and FCF of about £150m per annum.

• FY26 outlook includes continued growth momentum, margin enhancement initiatives, and headwinds from National Insurance and inflation.

• Free cash flow expected to exceed £120m in FY26, with ROIC remaining above 20%.

• Leverage to remain within target range, with rapid deleveraging expected post-acquisition.