Kier has reported record orders and rising profits and revenue in its annual results as its chief executive Andrew Davies prepares to step down.

The company announced in July that Davies would retire in October and be succeeded by  Stuart Togwell, currently Kier’s executive director and group managing director of construction, who will take up the new role on 1 November.

In results for the year ending 30 June 2025, Kier said revenue was up 3% to £4.1bn with pre-tax profits rising 15% to £78.1m. Davies also leaves his successor with a record order book of £11.0bn (FY24: £10.8bn).

During the year, Kier saw significant growth in both Infrastructure Services and Construction orders.

It secured its first contracts on Southern Water’s AMP8 framework, working on clean and waste water schemes totalling around £45m.

It was awarded a more than £100m contract to deliver additional prison places at HMP Northumberland, as part of the Small Secure Houseblocks (SSHP) Alliance for the Ministry of Justice (MoJ).

In the education field it was  awarded four projects worth around £210m with its Kier Places business appointed by Wiltshire Council to its five-year facilities management contract worth £3.4m a year.

Andrew Davies, chief Executive, said: “In the first year of our long-term sustainable growth plan the group delivered strongly, with profit performance, in particular, ahead of our initial expectations.

“Our adjusted operating profit margin of 3.9% has progressed well towards our target range of 4.0%-4.5%, while we also grew our order book to a record £11bn, providing considerable, multi-year revenue visibility.

“These achievements, together with our strong recurring cashflow and balance sheet discipline, enabled us to invest further in our property business; commence an initial £20m share buyback programme; and significantly increase the level of dividends payable to shareholders.

“Building on our outperformance in FY25, the group has started the current financial year well and for FY26 is trading slightly ahead of the board’s expectations. Kier remains well positioned to continue to deliver infrastructure that matters and benefit from the UK Government’s 10-year Infrastructure Strategy spending commitments.

"We remain confident in our strong sustainable cash generation, allowing us to allocate capital efficiently, utilising our integrated capabilities to drive compounding returns for our stakeholders.”

On a personal note, Davies said it had been “a privilege” to lead Kier over the last six years and to see the group transformed into a strong and sustainable business with enhanced resilience and a reinforced financial position.

“That transformation has only been possible due to the capability, professionalism and hard work of Kier’s teams and the support of our customers and partners,” he added.