Galliford’s H1 update highlights a strong start to FY26, with increased confidence in the full year outcome. It now expects adj. PBT to be slightly above the top end of expectations. We therefore expect to upgrade our adj. PBT forecast for FY26 by c.4%-5%. The order book continues to underpin strong visibility at £4.1bn (2024: £3.9bn). Whilst FY26 is expected to be a slower growth year, today’s upgrade enhances the growth profile and EPS growth is expected to step up again in FY27 and FY28. Galliford’s medium term targets to 2030 imply an EPS CAGR of 10%, implying potential for upside as the Group moves towards its targets. Given a recent track record of upgrades and continued strength in the order book, we see no reason why these targets will not be achieved. We remain at Buy with our target price upgraded from 552p to 606p as we roll forward our valuation.
