Kier Group

Kier Group Dividend Analysis and Summary

• Interim dividend: 2.6p per share (up 30% YoY from 2.0p)
• Ex-dividend date: 16/04/2026
• Record date: 17/04/2026
• Payment date: 22/05/2026
• DRIP election deadline: 01/05/2026
• Policy: c.3x adjusted earnings cover through the cycle; payout split ~one-third interim, two-thirds final
• Company states the interim is one-third of the expected FY26 total; implied FY26 dividend ˜ 7.8p (vs FY25 total 7.2p, c.+8%)
• Stated adjusted earnings cover ˜ 3x for the interim

• Earnings support: HY26 adjusted EPS 9.5p; company reiterates c.3x cover policy and indicates the interim is covered c.3x. This implies comfortable headroom for the expected full-year dividend (~7.8p).
• Cash and balance sheet: Period-end net cash £103m and first period of average net cash £17m in 13 years. H1 free cash outflow (£42m) is seasonal and typically reverses in H2.
• Visibility: Record order book £11.6bn with 94% of FY26 revenue secured and 78% for FY27, supporting future cash flows.
• Capital allocation discipline: Policy targets maintaining average net cash and c.3x dividend cover; RCF refinanced to £190m (extendable to 2030), adding liquidity.
• Margins: Adjusted operating margin improved to 3.5% (+10bps), still modest but trending positively; medium-term target 4.0–4.5% provides potential for dividend growth if delivered.