Mitie Group (MTO) Q2 2026 TU earnings summary

Executive summary

• Revenue grew approximately 10% year-over-year to £2.7bn in H1 FY26, with organic growth of 6.1% and additional growth from acquisitions.

• Operating profit guidance for FY26 upgraded to at least £260m, reflecting strong trading momentum and successful integration of Marlowe.

• Share buybacks resumed with a new £100m programme, increasing cumulative buybacks since FY23 to £303m.

• Marlowe acquisition completed in August, with integration progressing well and expected to deliver at least £30m of cost synergies by FY28.

Financial highlights

• H1 FY26 revenue reached £2.7bn, up from £2.4bn in H1 FY25.

• Contract wins, extensions, and renewals totaled approximately £3.0bn TCV, compared to £3.7bn in H1 FY25.

• Closing net debt post-IFRS 16 at 30 September 2025 was approximately £475m, up £276m since March 2025, mainly due to the Marlowe acquisition.

• H1 FY26 average daily net debt was £332m, within the 0.75-1.5x leverage target range.

• Free cash flow generation in H1 FY26 was about £50m, up from £34m in H1 FY25.

Outlook and guidance

• FY26 operating profit before Other items expected to be at least £260m, including Marlowe's contribution.

• Free cash flow generation for FY26 expected to be at least £120m.

• On track to deliver FY25-FY27 Strategic Plan and financial targets.

• Progressive dividend policy maintained with a payout ratio of 30-40%.