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Investing.com -- Keller Group PLC (LON:KLR), the world’s largest geotechnical specialist contractor, on Tuesday reported first-half 2025 results ahead of market expectations, despite revenue declining 2% to £1.46 billion compared to the same period last year.
In constant currency terms, revenue grew 1% YoY.
The company posted underlying operating profit of £102.6 million, down 9% from £113.2 million in the first half of 2024, with underlying diluted earnings per share at 98.1p compared to 103.3p a year earlier.
Despite the decline, the performance exceeded market expectations, driving shares up 6.07% following the announcement.
David Burke, Chief Financial Officer, said: "We have delivered a good first half performance against a strong comparative period, with underlying business performance remaining robust. Our strong balance sheet provides us with flexibility, enabling organic growth as well as targeted M&A, along with further financial returns to shareholders."
The company’s underlying operating margin remained strong at 7%, significantly above its historic five-year first-half average of 4.8%, despite a 60 basis point decline from the previous year.
The performance reflected what the company described as an expected normalization of market conditions in North America, particularly in pricing at Suncoast, while Europe, Middle East, and Asia-Pacific divisions delivered profitable growth.
Keller maintained its strong order book at a record level of £1.6 billion and announced plans to launch an additional £25 million share buyback in the second half, following the successful completion of an initial £25 million tranche in the first half.
The company also declared an interim dividend of 18.3p, representing a 10% increase from the previous year.
Net debt on a lender covenant basis stood at £61.5 million, down 39% from £100.7 million in the first half of 2024, with a net debt/EBITDA leverage ratio of 0.2x. The Board maintained its full-year 2025 expectations despite anticipated foreign exchange headwinds in the second half.