The Group delivered an adj. PBT outturn of £17.6m (+5% YoY), in line with expectations. Outperformance in Services offset a lower than expected contribution from HRMS, with Land’s performance in line. The FY26 outlook remains encouraging and guidance is unchanged. A strong Services pipeline has secured over 70% of FY26 forecast revenue. There are several opportunities beyond this, including the primary earthworks contract on Sizewell C, where HSP is embedded on early works, and the Lower Thames Crossing. We expect to hear news on both within twelve months. A further potential catalyst is the first renewable land asset sale, where management indicates confidence in completing a transaction within cal. ’25 (we prudently assume the first sale in FY27). Management is also confident in an improved profit contribution from HRMS in FY26. Against continued strong momentum and several potential catalysts, we see the valuation as undemanding. We stay at Buy with an 854p TP (upgraded from 840p).
