Kier Group
Website:
Kier Group
Index:
FTSE 250
EPIC: KIE
Supersector:
Construction and Materials
Sector:
Construction and Materials
Subsector:
Heavy Construction
Market Cap:
£971.96M
Payout Frequency: Semi-Annual
Kier Group Dividend Analysis and Summary
Key Dividend Details
- 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
Sustainability and Coverage
- 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.
Structural or Policy Developments Affecting Dividends
- Share buyback: £20m programme completed (Dec 2025) and new £25m buyback announced (to complete within 12 months). This should modestly enhance per-share dividend capacity by reducing the share count, assuming stable payout policy.
- Organisation: Leadership refresh (new CEO/CFO) and integration of Transportation with Natural Resources, Nuclear & Networks to form an integrated infrastructure platform. No demergers or M&A disclosed.
- Financing: Refinanced and upsized RCF to £190m with option to extend to October 2030, improving financial flexibility to support dividends and buybacks.
Risks and Flags
- Legacy compliance costs: Fire and cladding costs of £10.7m in H1 (adjusting); full-year expected c.£30m. While many are non-recurring and partly insurable, cash timing remains a watchpoint.
- Working capital seasonality: H1 free cash outflow (£42m) is typical but requires continued H2 conversion to sustain distributions and buybacks concurrently.
- Low margins: Adjusted margin at 3.5% provides limited shock absorption; project execution, inflation, and subcontractor solvency remain sector-standard risks.
- Pension: Scheme in £81m surplus at period-end, but triennial valuations due by June 2026 could alter future contributions.
- Sector exposure: Heavy weighting to public/regulated frameworks ties outlook to government budgets and programme phasing (albeit current visibility is strong).
Read more
Kier Group Annual Dividend Yield - 3.36%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 24/04/2025 |
02/06/2025 |
Interim |
2.00p |
GBX |
| 30/10/2025 |
03/12/2025 |
Final |
5.20p |
GBX |
Total (Annual Dividends Per Share):
7.20p
Dividend Yield =
Annual Dividends Per Share (7.20p)
÷ Share Price (214.6p)
= 3.36%
Kier Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 16/04/2026 |
22/05/2026 |
Interim |
2.6000p |
GBX |
| 30/10/2025 |
03/12/2025 |
Final |
5.20p |
GBX |
| 24/04/2025 |
02/06/2025 |
Interim |
2.00p |
GBX |
| 24/10/2024 |
29/11/2024 |
Final |
3.48p |
GBX |
| 18/04/2024 |
31/05/2024 |
Interim |
1.67p |
GBX |
| 28/03/2019 |
17/05/2019 |
Interim |
4.90p |
GBX |
| 27/09/2018 |
03/12/2018 |
Final |
46.00p |
GBX |
| 22/03/2018 |
18/05/2018 |
Interim |
23.00p |
GBX |
| 28/09/2017 |
01/12/2017 |
Final |
45.00p |
GBX |
| 30/03/2017 |
19/05/2017 |
Interim |
22.50p |
GBX |
| 29/09/2016 |
02/12/2016 |
Final |
43.00p |
GBX |
| 24/03/2016 |
20/05/2016 |
Interim |
21.50p |
GBX |
| 24/09/2015 |
27/11/2015 |
Final |
36.00p |
GBX |
| 05/03/2015 |
15/05/2015 |
Interim |
24.00p |
GBX |
| 24/09/2014 |
28/11/2014 |
Final |
49.50p |
GBX |
| 05/03/2014 |
16/05/2014 |
Interim |
22.50p |
GBX |
| 18/09/2013 |
27/11/2013 |
Final |
46.50p |
GBX |
| 06/03/2013 |
17/05/2013 |
Interim |
21.50p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
1.670 |
3.480 |
GBX |
5.150 |
5.100 |
| 2019 |
4.900 |
|
GBX |
4.900 |
-92.890 |
| 2018 |
23.000 |
46.000 |
GBX |
69.000 |
2.220 |
| 2017 |
22.500 |
45.000 |
GBX |
67.500 |
4.650 |
| 2016 |
21.500 |
43.000 |
GBX |
64.500 |
7.500 |
| 2015 |
24.000 |
36.000 |
GBX |
60.000 |
-16.660 |
| 2014 |
22.500 |
49.500 |
GBX |
72.000 |
5.880 |
| 2013 |
21.500 |
46.500 |
GBX |
68.000 |
|
Kier Group Dividend Calculator
Kier Group Dividend Growth
| Dividend Growth (1Y) |
42.34%
|
| Dividend CAGR (5Y) |
36.11%
|
| Years of Growth |
2
|
| Payout Ratio |
52.06%
|
| Buyback Yield |
-1.41%
|
| Shareholder Yield |
2.04%
|
| P/E Ratio (TTM) | 15.95 |
|---|
| Forward P/E | 9.07 |
|---|
| P/FCF | 3.82 |
|---|
| Earnings Yield | 6.59% |
|---|
| FCF Yield | 26.15% |
|---|
| ROE | 11.92% |
|---|
| ROCE | 11.15% |
|---|
| Profit Margin | 1.47% |
|---|
| Operating Margin | 2.64% |
|---|
| Gross Margin | 8.04% |
|---|