Kier plots property development exit
As it reported a record order book of £11.9bn, the Salford-headquartered company said it would streamline its operations to focus on its core infrastructure and construction business.
The news came in Kier Group’s annual results for the year ending 30 June 2026, which also saw the company’s revenue increase 7.5% year-on-year, reaching £4.4m.
Kier will exit property development in a “controlled way to balance timing and value, with capital to be realised in line with existing development schedules,” according to its results. There will be no investment in new property developments starting this financial year, which will end for Kier on 30 June 2027.
Kier’s current development projects are expected to continue for the time being: including the 110,000 sq ft Pall Mall office in Liverpool and 100,000 sq ft Trade City & Logistics City development on Sharston Industrial Estate in Manchester.
Leaving property development behind will strengthen the group’s balance sheet and lower its exposure, according to the results.
“We are building a stronger, more focused Kier, concentrating our expertise, resources and talent where we can create the greatest value for customers, shareholders, communities, and colleagues,” said Kier chief executive Stuart Togwell.
“We enter FY27 with strong foundations and clear strategic priorities, to make the most of the sizeable opportunity in front of us.”
He added that given its strong order book, the company is likely to have its earnings meet the “top end” of the group’s expectations.
Helping bolster this order book are framework position wins amounting to around £200bn – up £50bn from the year before. These frameworks sit within water, defence, energy, education, transportation, and healthcare.
One notable framework appointment was the £37bn Hospital 2.0 Alliance framework, which has already translated into winning the contract for the £500m redevelopment of Hinchingbrooke Hospital in Cambridgeshire.
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Looking at each of its three businesses, Kier’s construction division saw a 19% decrease in its reported operating profit, which was £44.3m for 2026 compared to £54.9m in 2025.
Property’s recording operating profit was also down 25%, shrinking from £12.2m in 2025 to £9.1m in 2026. This was in spite of revenue increasing 65% from £38.4m to £63.4m.
Infrastructure saw a 23% increase in its reported operating profit, jumping from £89.5m in 2025 to £109.8m in 2026.
Kier’s stock was up 2.1% as of 10:25am the day of the results report, with shares costing 253.20 GBX.
