UK's Galliford Try beats annual profit estimates

By Reuters News


Overview

  • UK construction contractor's full-year revenue rose 3%, meeting analyst expectations

  • Adjusted operating profit grew 21.9%, beating analyst expectations

  • Company announced new £15 mln share buyback programme


Outlook

  • Galliford Try expects similar revenue growth and further margin expansion in FY27

  • Company says 90% of FY27 and 62% of FY28 projected revenue is already secured

  • Galliford Try reiterates 2030 targets: revenue above £2.2bln, divisional margin at 4.0%


Result Drivers

  • INFRASTRUCTURE GROWTH - Co said Infrastructure revenue rose 7.7%, driven by strong performance in Highways and early design fees in Environment

  • MARGIN IMPROVEMENT - Co attributed higher margins to improved bidding, quality project delivery, and disciplined commercial and operational management

  • ACQUISITIONS AND INVESTMENTS - Co said acquisition of Nene Valley Fire and Acoustic and new fabrication facility were margin accretive and enhanced specialist capabilities


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

FY Revenue

Meet

GBP 1.93 bln

GBP 1.93 bln (5 Analysts)

FY Adjusted Operating Profit

Beat

GBP 49.50 mln

GBP 48.83 mln (4 Analysts)

FY Adjusted Pretax Profit

GBP 55.90 mln

FY Dividend

GBP 0.24

FY Order Book

GBP 4.30 bln


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the construction & engineering peer group is "buy."

  • Wall Street's median 12-month price target for Galliford Try Holdings PLC is GBp690.00, about 12.7% above its September 16 closing price of GBp612.00

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Sept 15 - UK's Kier Group FY26 revenue rises on infrastructure growth

  • Sept 16 - UK's Barratt Redrow FY revenue rises; cuts annual home completions target

  • Sept 16 - UK's Babcock retains annual forecast as defence spending backs momentum


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

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