This report does not constitute a rating action. Kier reported strong operating performance, though its margins remain constrained by thin industry profitability. The group's annual S&P Global Ratings-adjusted revenue increased by 6.8% to £4,353 million in fiscal 2026 (ended June 30, 2026), thanks to its infrastructure division. The company’s order book expanded by 8.2% to a record £11.9 billion, securing over 95% of projected revenue for fiscal year 2027. Despite that, Kier’s financial profile is restricted by a weaker adjusted EBITDA margin, which fell to 4.9% in fiscal 2026 from 5.2% in fiscal 2025. S&P Global Ratings forecasts adjusted EBITDA margins to remain stable at 4.6%-4.7% over fiscals 2027-2028. Despite cost pressures and labour demands, roughly 95% of the revenue
