Renew Holdings (RNWH) Investor presentation summary

Strategic progress and market positioning

• Achieved strong first half performance, supported by strategic progress and diversified end market exposure.

• Transitioned to a pure-play engineering model with the disposal of Specialist Building and entry into energy transmission, distribution, and renewables.

• Record order book of £908m and a strong balance sheet provide significant M&A capacity.

• Recent challenges in the rail sector have stabilized, contributing to overall momentum.

• Operates in markets with committed regulatory funding, focusing on mission-critical infrastructure services.

Financial performance and growth

• Group revenue reached £569m, with adjusted operating profit of £32.0m and adjusted EPS of 28.2p for H1 2025.

• Adjusted operating margin stands at 5.6%, and interim dividend per share is 6.7p.

• Five-year average ROCE is 27%, with HY25 ROCE at 22%, reflecting recent acquisitions.

• Free cash flow conversion remains strong, supported by an asset-light model and £120m RCF secured until November 2026.

• Demonstrated a 16% CAGR in adjusted EPS since 2011, with consistent earnings growth.

Business model and market dynamics

• Delivers low-risk, non-discretionary maintenance and renewals across complex, regulated environments.

• Balanced approach to growth: 53% of revenue and 51% of profit growth from acquisitions, with the remainder from organic growth.

• Annual addressable market estimated at £33bn, focused on operating budgets in rail, infrastructure, energy, and environmental sectors.

• Renewal and maintenance markets are growing and present lower risk than capex budgets, with significant increases in committed spend across sectors.