Kier Group – tomorrow’s Trading Update should show it delivering much more than just the sum of its parts, shares 208p, broker’s TP 250p
- Mark Watson-Mitchell
- Jul 21
- 3 min read
21.07.2025
Tomorrow morning, Tuesday 22nd July, will see the Kier Group (LON:KIE) announce its Trading Update for the six months to end-June.
I believe that the statement could show the substantial strength of the group’s order book and that it already has more than 80% of its 2026 trading year’s revenues booked.
The group’s declared purpose is to sustainably deliver infrastructure which is vital to the UK.
The Business
The group can trace its history back to 1928 when it was established to specialise in concrete engineering.
It later expanded into general contracting and then housebuilding.
The company listed in 1963 and remained quoted until it was acquired by Beazer in 1986.
It was under the ownership of the Hanson Group until Kier’s management bought it out in 1992, with the view to expand its housing interests.
Four years later Kier was relisted back onto the market.
Today Kier Group is a provider of infrastructure services, construction, and property development.
The Infrastructure Services segment consists of Highways, Infrastructure and Utilities businesses.
The Highways business designs, builds and maintains roads for National Highways, Transport for London and a number of district and county councils.
The Infrastructure business delivers major and complex infrastructure and civil engineering projects.
The Utilities business provides construction and maintenance services, under long-term contracts, to the water, energy, and telecom sectors.
The Construction segment comprises regional building, strategic projects, Kier Places, as well as its international business.
The Property segment invests and develops primarily mixed-use commercial and residential schemes and sites across the UK.
The group is focused on the UK, where it is the largest supplier of construction and infrastructure services to the government, the regulated and blue-chip private client base, with 90% of its revenue coming from public and regulated customers.
It operates in the business-to-business market, and contracts through long-term frameworks.
Its actions to support that strategy are threefold: disciplined sustainable growth, consistent and safe delivery and strong cash generation.
At any given time, it typically have over 400 contracts, predominantly with central government and local authorities, while its business is supported by around 10,000 employees and more than 16,000 supply chain partners.
The Equity
There are some 452.67m shares in issue.
The larger holders include Brewin Dolphin (5.02%), Charles Stanley (Investment Management) (5.01%), Pendal Group Ltd. (Investment Management) (5.01%), Lombard Odier Asset Management (Europe) (4.99%), J.O. Hambro Capital Management (4.96%), Rathbones Investment Management (4.94%), Schroder Investment Management (4.91%), M&G Investment Management (4.87%), Jupiter Investment Management (4.79%), and Aviva Investors Global Services (4.78%).
Analyst Opinions
There are some six analysts following the group, from whom the consensus average Target Price for the company’s shares is 227p, with the lowest call being just 200p, while the highest is for 250p.
At Panmure Liberum, its analysts Joe Brent and Joe Walker have a Buy out on the group’s shares with a Target Price of 250p a share.
In My View
Ahead of seeing the contents of tomorrow's Trading Update, I would gamble that there is good corporate news ahead, and that is despite the ‘challenging environment’ surrounding the sectors in which Kier seeks to serve its customers.
That very healthy £11bn plus Order Book is a great comfort for investors, especially as the group is determined to increase its operating margins over the next few years.
Comments