Galliford Try H2 Earnings Call Highlights

Galliford Try delivered another year of improvement: Revenue rose 3% to £1.93 billion, while adjusted profit before tax increased 24% to £55.9 million. Divisional operating margins reached 3.5%, supported by stronger performance in Building and Infrastructure.

Cash generation and shareholder returns remained strong: Year-end cash rose 9% to £259 million, with 100% cash conversion and no bank debt or pension liabilities. The company announced a new £15 million share buyback and raised its dividend 23.5% to 23.5 pence per share.

Management expects continued growth: The group's order book expanded in Building and remained substantial in Infrastructure, while opportunities in water, specialist services and affordable housing support its outlook. Galliford Try expects similar revenue growth and further margin progression in 2027.

Galliford Try (LON:GFRD) reported a sixth consecutive year of improvement in its key financial measures for the year ended 2026, supported by margin gains in its Building and Infrastructure divisions, strong cash generation and a growing order book.

The construction group said revenue increased 3% to £1.93 billion, while adjusted profit before tax rose 24% to £55.9 million. Adjusted operating profit increased 21.9% to £49.5 million, with divisional adjusted operating margin improving to 3.5% from 3.0% a year earlier.

Management said the performance kept the company on track toward its 2030 objectives, including a 4% operating-margin target. The group also announced a new £15 million share buyback.

Kris Hampson, Galliford Try's CFO, said the results reflected "continued execution" of the company's strategy, with profit and margin growth exceeding revenue growth. He attributed the margin progression to commercial discipline, improved terms on newer frameworks, delivery from the group's risk-managed order book and a larger contribution from specialist services businesses.

Adjusted basic earnings per share rose 23.1% to 42.4 pence. Net interest income increased 45% to £6.4 million, reflecting higher average cash balances and cash management. The adjusted effective tax rate was 25.0%.

The company raised its full-year dividend 23.5% to 23.5 pence per share. Hampson said the group planned to continue growing its dividend while maintaining 1.8 times adjusted EPS cover.