- Second increase this year
- Results seen above top end
- On track for margin targets
If there was any doubt as to which bit of the construction market to be involved in, infrastructure and civil engineering firm Galliford Try (GFRD) laid that to rest this morning with another increase to full-year revenue, margin and earnings guidance.
The shares jumped 24p or almost 6% to a new five-year high of 444p.
RAISING ESTIMATES AGAIN
When it released its results for the six months to December 2024 at the beginning of March, the firm said revenue and pre-tax profit would be above the top end of analysts’ forecasts, which at that point were £1.835 billion and £36 million, respectively.
Chief executive Bill Hocking said the group’s first-half performance gave it the confidence to ‘improve expectations’, while its recent major framework wins and the size of its order book provided ‘clear visibility and security of future workloads well beyond the current financial year’.
Ahead of the release of its results for the financial year to June, the company said this morning that thanks to its water contracts and ‘solid’ highways delivery, revenue and pre-tax profit would be above the top end of the latest estimates, which sit at £1.885 billion and £41.6 million, respectively.
Galliford also said stronger trading meant it would deliver ‘further margin progression towards our 2030 sustainable margin target of 4.0% and previously communicated margin target of 3.0% in 2026’.
‘I am delighted all our operations continued to perform strongly throughout the second half of the year and we expect to report another year of increased revenue and profit in September’, commented the chief executive.
‘We are excited about the opportunities in our chosen sectors and the delivery of further strong performance and long-term value for all stakeholders as we work to deliver our sustainable growth targets by 2030.’
'HIGH QUALITY AND GROWING ORDER BOOK'
Analysts at Berenberg observed Galliford was starting the 2026 financial with a high-quality and growing order book, while continuing to note a significant pipeline of opportunities across its chosen sectors.
The investment bank's earnings per share for June 2026 and June 2027 have been raised by around 5%.
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