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LONDON - Mitie Group plc (LSE:LON:MTO) reported third-quarter revenue of £1.317 billion, surpassing analyst estimates of £1.248 billion by approximately 5%. The facilities management company saw organic revenue growth of 11% YoY, including 2% from pricing and 1-2% from surge response tailwinds.
The company's underlying organic growth was 7-8%, driven by key account growth, scope increases, and project upsells. Reported revenue included a 4% contribution from acquisitions. Mitie's order book expanded by £1.1 billion in Q3, with notable contract wins including security services for DVLA and Boots, as well as integrated facilities management for HMRC.
"Our strong performance in Q3 reflects the continued momentum in our business and the success of our growth strategy," said Phil Bentley, CEO of Mitie. "We're particularly pleased with the expansion of our order book and the record high bid pipeline, which positions us well for future growth."
Mitie's shares rose 0.5% following the earnings release.
Looking ahead, Mitie expects revenue growth to moderate in Q4, resulting in low double-digit growth for the full fiscal year 2025. The company raised its full-year EBITA guidance to approximately £225 million, compared to the consensus estimate of £222 million. Free cash flow is projected to exceed £100 million for the year.
The company's bid pipeline reached a new record high of £25 billion, up from £22 billion at the end of September. Mitie also reported progress on its share buyback program, having purchased £35 million worth of shares in Q3, nearing completion of its current £100 million program.
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