Galliford’s final results confirm adj. PBT is 6% ahead of expectations, growing by 29% to £45.0m (SCMe: £42.6m, 2024: £35.0m). This was driven by 6.3% revenue growth alongside strong margin progression, with the divisional operating margin at 3.0% (2024: 2.5%). Looking to FY26, the £4.1bn order book (2024: £3.8bn) provides strong support against forecasts, with 92% and 75% of forecast revenues for FY26 and FY27 now secured. Against this very strong position, we expect to upgrade our PBT forecast by around 5% p.a. Galliford’s medium term targets to 2030 imply an operating profit CAGR of 15%, implying potential for further upside as the Group moves towards its targets. There is further good news in the dividend being up 22.6% to 19.0p (SCMe: 17.7p) and a further share buyback of £10m. We will review our forecasts and valuation following the analyst call but we expect the shares to react positively to this morning’s announcement.
