Andrew Davies has bowed out after six years in charge of Kier, leaving the business with record orders, rising profits and revenue topping £4bn for the first time since 2018.

Pre-tax profit rose 15% to £78m in the year to June 2025 on revenue up 4% to £4.08bn.

Adjusted operating margins edged up to 3.9%, just short of the group’s long-term 4%–4.5% target.

Davies hands over the running of the business to Stuart Togwell, currently Kier’s group managing director of Construction, at the end of next month.

He departs leaving his successor with a record order book at £11bn, with 91% of next year’s revenue already secured and about 70% of FY27 work locked in, giving the business its strongest visibility of future cashflows in years.

Kier’s balance sheet is now also in far better shape, ending the year with £204m net cash compared to £167m last time.

Average month-end net debt has been cut to £49m, a dramatic turnaround from the £422m burden Davies inherited when he took charge in 2019.

Infrastructure remained Kier’s biggest earner, accounting for just over half of group revenue at £2.14bn, up 7% on last year. Work on HS2 and growth in the water and nuclear markets offset delays in new road and rail programmes.

Pre-tax contribution slipped slightly after a one-off £6m claim boosted last year’s numbers, with reported operating profit steady at £89.5m. Margins in the division eased to 5.2%.

Kier’s construction arm held revenue flat at £1.91bn, with profit lifted by 8% to £75m as margins improved to 3.9%.

Construction benefitted from a better mix of projects, handing over the new HMP Millsike prison and starting work on the flagship HMP Glasgow scheme. Kier Places also secured a new five-year facilities management deal with Wiltshire Council worth £3.4m a year.

Kier’s property business nearly doubled profit to £12m despite sales falling back to £38m after a large disposal boosted the previous year.  Capital employed rose to £198m, as Kier pushed towards its target return on capital employed of 15% by 2028.

Andrew Davies, Chief Executive, said: “Building on our outperformance in FY25, the group has started the current financial year well and for FY26 is trading slightly ahead of the board’s expectations.

“Kier remains well positioned to continue to deliver infrastructure that matters and benefit from the UK Government’s 10-year Infrastructure Strategy spending commitments. 

“On a personal note, it has been a privilege to lead Kier over the last six years and to see the group transformed into a strong and sustainable business with enhanced resilience and a reinforced financial position.

“That transformation has only been possible due to the capability, professionalism and hard work of Kier’s teams and the support of our customers and partners.”