Mitie shares surge as company restarts buyback program

Published 14/10/2025, 09:22
 Mitie shares surge as company restarts buyback program

Investing.com - Mitie Group on Tuesday reported second-quarter revenue of approximately £1.4 billion, in line with forecasts but ahead of the consensus estimate of £1.2 billion.

The facilities management company saw organic revenue growth slow to around 4% in the second quarter, down from 8% in the first quarter.

Shares in Mitie jumped 7% following the announcement, primarily driven by the company’s unexpected decision to resume its share buyback program with a £100 million repurchase plan to be completed over the next 12 months.

The buyback had previously been paused for the Marlowe acquisition.

The company added £3.0 billion in new contract wins and renewals to its order book during the quarter, significantly higher than the £1.2 billion added in Q1.

Notable wins included integrated facility management services for Aviva, immigration services for the Home Office, and security services for the Metropolitan Police Authority and Tate Gallery.

"The integration of Marlowe is progressing well," said Phil Bentley, CEO of Mitie Group . "We expect it to contribute approximately £12 million to EBITA in fiscal year 2026."

Looking ahead, Mitie expects to deliver at least £260 million in EBITA for fiscal year 2026, slightly above the analyst consensus of £257 million. The company also forecasts free cash flow of at least £120 million for the period.

Acquisitions contributed approximately 4% to Mitie’s reported revenue growth during the quarter, complementing the organic growth figures.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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