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September 17.2025

2 Minutes Read

Galliford Try Doubles Profit as 3% Margin Milestone is Achieved Early

Galliford Try profit and margin success, man in hard hat smiling.

Galliford Try's Impressive Financial Milestone

Galliford Try has marked a significant milestone in its five-year growth trajectory by doubling its profits and hitting a 3% margin target a year ahead of schedule. The company's notable increase in cash reserves, now at £238 million, allows for potential acquisitions and the expansion into higher-margin specialist sectors.

Navigating a Robust Order Book

Despite a challenging economic landscape, Galliford Try has managed to bolster its order book, which now stands at £4.1 billion, a substantial rise from the previous £3.8 billion. Impressively, this growth comes with 92% of the revenue already secured for the current financial year and 75% for 2027. Such strong visibility reflects the company’s strategic positioning in the infrastructure and building sectors, both of which are crucial to the UK's development agenda.

Sector Growth and Future Outlook

CEO Bill Hocking shared insights about the anticipated transitions within key sectors, particularly the water industry moving from AMP7 to AMP8. He noted a potential slowdown in revenue growth during this shift but remained optimistic about a strong influx of projects starting in 2027-28. This optimism is bolstered by significant contract wins, including projects on National Grid's £59 billion framework and various other high-profile civil engineering contracts.

Building Sector Performance

In the building division, revenues grew by 3%, with profits increasing 17% to £28 million, illustrating resilience in a competitive market. Significant contracts, such as the fire safety upgrades for Ministry of Justice facilities, showcase Galliford Try’s ability to capture critical government-backed work, which remains a cornerstone for future stability.

Financial Health and Shareholder Returns

The company's strong performance has led to a record 19p per share dividend, reflecting a 23% rise. Coupled with plans for an additional £10 million share buyback, Galliford Try is clearly committed to returning value to its shareholders, while also maintaining a robust cash position for strategic investments and expansion plans.

Conclusion: A Bright Future Ahead

With further margin improvement targeted on the pathway to achieving a 4% margin by 2030, and a solid foundation of government investments in infrastructure, Galliford Try appears well-equipped to face future challenges head-on. As they continue to leverage their financial strength for strategic growth, stakeholders can anticipate exciting developments ahead in the construction industry.

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