Mitie Group plc

H1 FY '26 revenue was GBP 2.7 billion, up 10.4% year on year, with 6.4% organic growth. Operating profit was GBP 108.8 million, up 7.6%, and margins were just over 4% (group margin 4.1%). EPS rose 5.6% to 5.7p, and the interim dividend increased 7.7% to 1.4p per share. Free cash inflow was GBP 51.9 million, average daily net debt was GBP 332 million, and closing net debt was GBP 471 million. For the full year, management reaffirmed FY '26 EBIT guidance of at least GBP 260 million, said free cash flow should be more than GBP 120 million, and expects H2 revenue growth to remain in double digits with margins higher than H1.

Phillip Bentley framed the first half as evidence that Mitie’s strategic shift is working, saying the company is at the halfway point of its FY '25 to FY '27 plan and is “on track” with growing momentum. He highlighted record contract wins and renewals, a larger order book and pipeline, and said the business is moving from facilities management toward facilities transformation and compliance. His tone was upbeat and confident, especially on Marlowe integration, AI-driven efficiency, and the ability to grow beyond FY '27.

Simon Kirkpatrick focused on the financial model: profitable growth plus free cash flow, which he said has driven earnings compounding, shareholder returns and M&A. He cited H1 revenue of GBP 2.7 billion, operating profit of GBP 108.8 million, EPS of 5.7p, and free cash inflow of GBP 51.9 million, while noting average daily net debt of GBP 332 million and leverage at 1x. He also quantified the inflation and NI impacts, saying 95% of cost inflation was recovered and that the FY '26 net NI impact should be around GBP 13 million, all offset by MEI. He said the company expects H2 margins to be higher and full-year free cash flow to exceed GBP 120 million.

Analysts focused on projects growth, pipeline conversion, immigration/justice, Marlowe, and telecoms. Management said project opportunities are being driven mainly by data centers, power and grid, and retrofit work; the average project size is GBP 270,000 and about 80% of projects are with existing customers, which helps manage risk. On the pipeline, Kevin Tyrrell said tender win rates are in the low-to-mid 60s and pipeline conversion is about 27%, while management noted the GBP 2 billion of BAFO pipeline includes some very large public-sector opportunities. On Marlowe, management said customer attrition is limited so far and the business is trading in line with expectations, while telecoms is already in turnaround and H2 should not show a major half-on-half profit swing.