Keller Group plc

For H1 2026, Keller reported revenue up 11% overall on a constant-currency basis and underlying operating profit up 17.1%, with margin rising to 7.3%. North America revenue increased 16.7% to GBP 984.4 million and operating profit rose 17.7% to GBP 93.8 million; EME revenue declined 5.2% to GBP 396.1 million while operating profit increased 28% to GBP 19.2 million; APAC revenue rose 22.8% to GBP 227.5 million while operating profit was broadly flat at GBP 13.8 million. Underlying EPS increased 22%, the interim dividend was set at 28.7p, and the board reiterated confidence in sustaining margins above 7%. Management said it remains confident in achieving its recently upgraded FY26 market expectations, with performance still expected to be weighted to the second half. They also highlighted a 20% increase in the order book, support from the I-40 project, and year-end net cash expected at circa GBP 30 million after the impact of the share buyback.

James Wroath framed the first half as a confirmation of Keller’s portfolio strength, saying the group can pivot toward growth markets while still protecting margins. He emphasized data centers, infrastructure, and the One Keller operating model as key advantages, and said the business is well positioned for further growth through the rest of 2026. His tone was upbeat but measured: confident in the current momentum, yet repeatedly careful not to overstate what the company can or should become, especially around large projects and M&A.

David Burke focused on the mix of the portfolio and the financial quality of the half, noting that North America is “powering forward,” EME is improving on profit despite lower revenue, and APAC is growing from a smaller base. He cited lower net finance costs because the group was net cash for most of H1, an effective tax rate of 23%, and EPS growth helped by both stronger profitability and the share buyback. On cash, he said free cash flow was marginally higher but conversion was lower because of higher working capital and CapEx, with GBP 32.4 million spent on the GBP 100 million buyback by half-year and net debt at GBP 15.9 million on an IAS 17 covenant basis. He also said headroom was circa GBP 655 million and reiterated confidence in sustaining margins above 7%.

Analysts pressed on the data center opportunity, cost inflation, EME margin durability, Canada, M&A, the order book duration, ERP spend, working capital, and whether the U.S. operating model could be applied elsewhere. Management said data centers are spread across the U.S., that the cycle is still early, and that schedule urgency often supports better margins; they also said cost inflation has been manageable because Keller can reprice short-cycle work or include escalation protection on longer jobs. On EME, they said the margin uplift reflects the non-repeat of the low-margin Trojena revenue, better UAE execution, and stronger operating discipline, with further improvement possible if the market turns. They described Canada as strong, said M&A is being approached patiently with a pipeline but no urgency, and said the I-40 project is helping prove Keller can now execute much larger jobs thanks to One Keller collaboration.