Morgan Sindall Group PLC: Another Record Year, Powered by Fit Out

Full-year results for the year ended 31 December 2025

Morgan Sindall Group PLC filed its full-year results for the year ended 31 December 2025 on 14 May 2026, and the headline was straightforward: another record performance. Unlike the volume housebuilders, Morgan Sindall is a construction and regeneration group spanning fit out, construction, infrastructure and partnership housing, and in 2025 it delivered double-digit revenue growth, a 35% jump in adjusted profit, a 20% dividend increase and an upgrade to its medium-term targets — all from a balance sheet carrying substantial net cash rather than debt.

The standout, once again, was the Fit Out division, whose surge did much of the heavy lifting for the group.

Headline numbers

Group revenue rose 10% to £5,019 million from £4,546 million. Adjusted operating profit increased 39% to £225.7 million, with the adjusted operating margin widening 90 basis points to 4.5% from 3.6%. After net finance income of £6.9 million (down from £9.9 million), adjusted profit before tax rose 35% to £232.6 million from £172.5 million.

Adjusted earnings per share increased 33% to 370.0 pence, while statutory basic EPS — which for Morgan Sindall actually sits slightly above the adjusted figure — rose 32% to 372.1 pence from 281.4 pence. Statutory net income was £174.9 million, up from £131.7 million. The effective tax rate was 25.2%, broadly in line with the UK statutory rate.

The balance sheet remains a defining feature. The group closed the year with net cash of £531 million, up £39 million, supported by cash conversion of 87% (up four percentage points). The secured order book stood at a record £11,972 million, up 5%, and with preferred-bidder work of £7.1 billion the combined total reached £19.1 billion.

A summary of the key metrics:

Metric (£m unless stated)FY25FY24ChangeRevenue5,018.64,546.2+10%Adjusted operating profit225.7162.6+39%Adjusted operating margin4.5%3.6%+90 bpsAdjusted profit before tax232.6172.5+35%Adjusted EPS370.0p278.8p+33%Statutory basic EPS372.1p281.4p+32%Net income (statutory)174.9131.7+33%Total dividend per share158p132p+20%Net cash531492+£39mSecured order book11,97211,419+5%

Divisional performance

Morgan Sindall runs a deliberately decentralised model, giving each division autonomy to pursue opportunities in its own markets. The spread of outcomes in 2025 was wide.

Fit Out was the engine of the result, delivering what the company called a market-leading performance: operating profit up 41% to £139.9 million on revenue 37% higher at £1.8 billion. The division comfortably exceeded the top of its £80–100 million medium-term profit target range, and management expects it to remain well above that range in 2026 even as profit normalises somewhat from this exceptional level.

Construction delivered a strong year, with operating profit up 20% to £37 million on revenue up 11% to £1.2 billion.

Infrastructure softened modestly, with operating profit down 3% to £37.2 million and revenue down 11% to £935 million, though it remains a core part of the group's forward pipeline.

Property Services returned to profit, posting a small operating profit of £2 million against a £17.8 million loss the prior year — a meaningful turnaround for a division that had been a drag.

Partnership Housing produced what the group described as a strong and resilient performance despite a subdued private housing market, helped by large strategic schemes won with public-sector partners. Mixed Use Partnerships (the regeneration business) continued to build out a development pipeline that, including preferred-bidder positions, has grown to around £6.3 billion, spanning roughly 22,000 new homes across 24 communities alongside commercial and public space.

Raised targets and dividend

Confidence in the outlook was reflected in two ways. First, the board lifted the total dividend by 20% to 158 pence per share, underpinned by strong cash generation. Second, management raised the medium-term targets for two divisions: Mixed Use Partnerships' annual return-on-capital target was increased to "up towards 30%" from 25%, supported by higher-quality, more forward-funded schemes, and Infrastructure's medium-term revenue target was raised to around £1.5 billion from £1 billion.

2026 outlook

Morgan Sindall guided to a 2026 group outlook ahead of expectations. Fit Out is expected to remain significantly above the top of its target range, implying operating profit comfortably over £100 million, even if below the 2025 peak. Partnership Housing should deliver solid profit growth at a similar return on capital, while Construction and Infrastructure are each expected to operate around the middle of their margin ranges, with Construction revenue approaching £1.3 billion and Infrastructure heading towards £1 billion. Mixed Use Partnerships faces a transitional year, with a high number of project starts depressing near-term profit and return on capital as capital is deployed into new schemes — a near-term cost in service of the raised long-term target.

The group entered 2026 with a record secured order book and preferred-bidder work up 17% to £19.1 billion combined, giving strong forward visibility.

The takeaway

Morgan Sindall's 2025 results stand in contrast to the more cautious tone elsewhere in the sector. Where the pure housebuilders are wrestling with soft open-market demand, legacy building-safety costs and incentive-led margin pressure, Morgan Sindall delivered record profit, raised its dividend and targets, and did so while holding more than half a billion pounds of net cash.

The obvious watch-item is concentration: Fit Out has become an outsized contributor, and a normalisation in that division — which management itself anticipates — will test the breadth of the rest of the group. But with a record order book, a turnaround in Property Services, a growing regeneration pipeline and a fortress balance sheet, the group enters 2026 with genuine momentum and unusual financial flexibility. For longer-term investors, the case rests on the durability of Fit Out, disciplined capital deployment into Mixed Use Partnerships, and continued conversion of that £19.1 billion of secured and preferred-bidder work.

This article is based on Morgan Sindall Group plc's published full-year results announcement for the year ended 31 December 2025 and is provided for general information only. It does not constitute investment advice. Figures are taken from the company's results statement; the full annual report and accounts are available at https://find-and-update.company-information.service.gov.uk/company/00521970/filing-history