Keller Group
Website:
Keller Group
Index:
FTSE 250
EPIC: KLR
Supersector:
Construction and Materials
Sector:
Construction and Materials
Subsector:
Heavy Construction
Market Cap:
£1.65B
Payout Frequency: Semi-Annual
Keller Group Dividend Analysis and Summary
Key Dividend Details
- Final dividend: 52.1p per share (FY25)
- Ex-dividend date: 28/05/2026 (derived from record date)
- Record date: 29/05/2026
- Payment date: 26/06/2026
- Interim dividend (FY25): 18.3p
- Total dividend for FY25: 70.4p (up 41.6% vs 49.7p in FY24)
- Dividend cover (underlying): 3.0x (underlying diluted EPS 211.3p)
- Dividend policy: enhanced, targeting cover of 2.5x–3.5x with a progressive dividend
- Cash cost and capacity: proposed final dividend cost £35.9m; distributable reserves £274.0m
- Share buybacks: intention to launch a further £100m buyback in 2026; £38.9m returned via buybacks in 2025 (c.£44m to 2 Mar 2026)
Analysis: Sustainability and Growth
- Covers and cash generation support: Cover at 3.0x sits mid-range of the new policy. Free cash flow of £175.9m and operating cash conversion of 108% indicate strong dividend capacity.
- Balance sheet strength: Net cash (IAS 17 basis) of £59.7m; low leverage (statutory net debt £28.9m, leverage ~0.1x) and undrawn RCF of £400m provide ample headroom.
- Earnings quality: Underlying EPS up 5.7%; margin held at 7.1%; ROCE at a 17-year high of 30.7%. Order book of £1.54bn with good tendering visibility into 2026 underpins near-term earnings.
- Growth trajectory: The FY25 total DPS “step change” aligns with the enhanced policy; with mid-cycle cover and ongoing buybacks, DPS growth looks well-supported if cash generation remains robust.
Structural or Policy Changes Affecting Dividends
- Enhanced dividend policy adopting a target cover of 2.5x–3.5x, enabling a higher, progressive base for future DPS.
- Capital returns: Intention for an additional £100m buyback in 2026 following ongoing programme; buybacks should modestly accrete EPS/DPS.
- Financing/liquidity: RCF extended to June 2030; fixed-rate private placements in place, reducing financing risk.
- Management and portfolio notes: New CEO (Aug 2025) and Chair (Mar 2026) both reaffirm commitment to shareholder returns; non-core SA disposal (2024) complete; closure of Mauritius noted but immaterial to dividend capacity.
Risks and Flags to Dividend Stability
- End-market cyclicality: US residential exposure (Suncoast) remains soft; North American margins normalised from exceptional 2024 levels.
- FX headwinds: Sterling translation effects can dampen reported EPS and hence perceived cover.
- Project and claims risk: Elevated contract (£72.9m) and insurance/legal (£87.0m) provisions reflect inherent project risk, though some reversals occurred in 2025.
- Execution/IT programmes: Ongoing ERP/finance transformation costs (non-underlying) continue into 2026; cash outflows, while manageable, are a consideration.
- Capital allocation optionality: Target leverage range of 0.5x–1.5x and selective M&A could re-prioritise cash deployment in a downside scenario; however, policy signals ongoing dividend progression.
Read more
Keller Group Annual Dividend Yield - 2.14%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 22/05/2025 |
20/06/2025 |
Final |
33.10p |
GBX |
| 14/08/2025 |
12/09/2025 |
Interim |
18.30p |
GBX |
Total (Annual Dividends Per Share):
51.40p
Dividend Yield =
Annual Dividends Per Share (51.40p)
÷ Share Price (2400p)
= 2.14%
Keller Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 28/05/2026 |
26/06/2026 |
Final |
52.1000p |
GBX |
| 14/08/2025 |
12/09/2025 |
Interim |
18.30p |
GBX |
| 22/05/2025 |
20/06/2025 |
Final |
33.10p |
GBX |
| 15/08/2024 |
13/09/2024 |
Interim |
16.60p |
GBX |
| 30/05/2024 |
28/06/2024 |
Final |
31.30p |
GBX |
| 17/08/2023 |
08/09/2023 |
Interim |
13.90p |
GBX |
| 01/06/2023 |
23/06/2023 |
Final |
24.50p |
GBX |
| 18/08/2022 |
09/09/2022 |
Interim |
13.20p |
GBX |
| 01/06/2022 |
01/07/2022 |
Final |
23.30p |
GBX |
| 19/08/2021 |
10/09/2021 |
Interim |
12.60p |
GBX |
| 03/06/2021 |
25/06/2021 |
Final |
23.30p |
GBX |
| 26/11/2020 |
18/12/2020 |
Interim |
12.60p |
GBX |
| 22/08/2020 |
16/09/2020 |
Interim |
12.60p |
GBX |
| 30/07/2020 |
21/08/2020 |
Final |
21.00p |
GBX |
| 30/07/2020 |
21/08/2020 |
Special |
2.30p |
GBX |
| 04/06/2020 |
26/06/2020 |
Final |
25.10p |
GBX |
| 04/06/2020 |
26/06/2020 |
Special |
2.30p |
GBX |
| 22/08/2019 |
16/09/2019 |
Interim |
12.60p |
GBX |
| 30/05/2019 |
21/06/2019 |
Final |
23.90p |
GBX |
| 09/08/2018 |
03/09/2018 |
Interim |
12.00p |
GBX |
| 31/05/2018 |
22/06/2018 |
Final |
24.50p |
GBX |
| 10/08/2017 |
05/09/2017 |
Interim |
9.70p |
GBX |
| 18/05/2017 |
09/06/2017 |
Final |
19.25p |
GBX |
| 01/09/2016 |
30/09/2016 |
Interim |
9.25p |
GBX |
| 19/05/2016 |
10/06/2016 |
Final |
18.30p |
GBX |
| 13/08/2015 |
04/09/2015 |
Interim |
8.80p |
GBX |
| 12/03/2015 |
08/06/2015 |
Final |
16.80p |
GBX |
| 13/08/2014 |
05/09/2014 |
Interim |
8.40p |
GBX |
| 04/06/2014 |
13/06/2014 |
Final |
16.00p |
GBX |
| 09/10/2013 |
01/11/2013 |
Interim |
8.00p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
16.600 |
31.300 |
|
GBX |
47.900 |
24.730 |
| 2023 |
13.900 |
24.500 |
|
GBX |
38.400 |
5.200 |
| 2022 |
13.200 |
23.300 |
|
GBX |
36.500 |
1.670 |
| 2021 |
12.600 |
23.300 |
|
GBX |
35.900 |
-52.700 |
| 2020 |
25.200 |
46.100 |
4.600 |
GBX |
75.900 |
107.940 |
| 2019 |
12.600 |
23.900 |
|
GBX |
36.500 |
0.000 |
| 2018 |
12.000 |
24.500 |
|
GBX |
36.500 |
26.070 |
| 2017 |
9.700 |
19.250 |
|
GBX |
28.950 |
5.080 |
| 2016 |
9.250 |
18.300 |
|
GBX |
27.550 |
213.060 |
| 2015 |
8.800 |
|
|
GBX |
8.800 |
-78.640 |
| 2014 |
8.400 |
32.800 |
|
GBX |
41.200 |
415.000 |
| 2013 |
8.000 |
|
|
GBX |
8.000 |
|
Keller Group Dividend Calculator
Keller Group Dividend Growth
| Dividend Growth (1Y) |
1.36%
|
| Dividend CAGR (5Y) |
7.73%
|
| Years of Growth |
4
|
| Payout Ratio |
26.22%
|
| Buyback Yield |
2.45%
|
| Shareholder Yield |
5.42%
|
| P/E Ratio (TTM) | 11.91 |
|---|
| Forward P/E | 10.5 |
|---|
| P/FCF | 9.68 |
|---|
| Earnings Yield | 8.77% |
|---|
| FCF Yield | 10.33% |
|---|
| ROE | 23.06% |
|---|
| ROCE | 20.03% |
|---|
| Profit Margin | 4.62% |
|---|
| Operating Margin | 6.83% |
|---|
| Gross Margin | 14.85% |
|---|