Kier Group – already up 41% this year, AGM Trading Update gives confidence for shares at 205p, TP 270p

Mark Watson-Mitchell
Nov 14
2 min read

Mark Watson-Mitchell - 14.11.2025

Following the issue of yesterday’s AGM Trading Update by Kier Group (LON:KIE) analyst Max Hayes, at Cavendish Capital Markets, has stated that it underpins his firm’s confidence in its 277p a share Target Price, compared to the current 205p.

The Business

Kier is a leading UK infrastructure services, construction and property group.

It provides specialist ‘design and build’ capabilities and the knowledge, skills and intellectual capital of its people to ensure that it is able to project manage and integrate all aspects of a project.

AGM Trading Update

The Update reported that the group’s order book currently stands at c.£11.6bn (30 June 2025: £11.0bn) and with 94% of FY26 group revenue is now estimated to be secured, providing a high degree of visibility.

Bidding discipline and risk management embedded across the business has continued to drive the high-quality and profitable order book.

The company has secured significant new contracts, including a £700m highways and infrastructure works contract with Norfolk County Council, a £205m United Utilities Reservoir Works Framework, and multiple education and justice projects totalling around £306m.

Kier also successfully refinanced its revolving credit facility in October 2025, increasing it to £190m from £150m, reflecting banking partners' confidence in its growth prospects and cash generation.

CEO Stuart Togwell stated that:

"The current financial year has started well and we are trading in line with our expectations.

I am excited to be beginning my tenure as Chief Executive and now look forward to working with our exceptional people to drive growth and value for our customers, the communities we serve and our shareholders."

Broker’s View

At Cavendish, its analyst Max Hayes has estimates out for the current year for revenues of £4,273.2m (£4,087.8m), with adjusted pre-tax profits of £142.5m (£132.4m), lifting earnings to 23.1p (20.5p) and the dividend to 8.1p (7.2p) per share.

For 2027 he looks for £4,415.9m sales, £149.9m profits, 24.4p earnings and a dividend of 8.6p per share.

“Whilst the shares have re-rated strongly this year, we believe significant upside potential remains as Kier continues generating a stable track record on delivery and reporting balance sheet strength.

Demonstrating order book resilience in the face of political uncertainty will also be a key factor, highlighting the benefits of its regulated contract base.”

In My View

I like the Kier Group business; it covers all aspects in its range.

The group’s shares, at 205p, have enjoyed a strong 41% uplift this year, but they still offer a very attractive upside, with 240p being a new and