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Morgan Sindall Group PLC on Wednesday hiked its annual dividend and lifted mid-term targets for two divisions amid a strong financial performance. The London-based construction and regeneration company said pretax profit jumped 35% to £231.8 million in 2025 from £171.9 million the year prior, as revenue grew 10% to £5.02 billion from £4.55 billion. Operating profit increased 39% to £224.9 million from £162.0 million, while basic earnings per share improved 32% to 372.1 pence from 281.4p. Morgan Sindall highlighted a ‘strong and resilient’ performance from Partnership Housing, despite the slow levels of activity in the private housing market, and ‘another significant and market-leading performance’ from Fit Out. Trading performance in Mixed Use Partnerships continued to reflect expensed investment costs for schemes planned to start on site in 2026 while operating profit in Infrastructure was marginally down. Shares in Morgan Sindall fell 2.5% to 5,197.00 pence each in London on Wednesday. They have risen 47% in the last 12 months. The firm lifted the final dividend 20% to 108.0p per share from 90.0p a year ago, resulting in a total dividend for the year of 158.0p per share, also up 20% from 131.5p, representing dividend cover of 2.4 times. Morgan Sindall said this reflects the group’s ‘significant performance in the year, its strong balance sheet and the board’s confidence in the long-term future prospects of the group.’ Despite some of the current market headwinds, the group said it ‘remains confident of the strength of the markets in which it operates in over the medium and long-term.’ It is ‘on track to deliver an outcome for 2026 which is in line with its revised expectations,’ the firm added. In the mid-term, Morgan Sindall upped return on capital targets for Mixed Use Partnerships to ‘towards 30%’ from ‘up towards 25%’ before. It lifted its revenue target for Infrastructure to ‘up towards’ £1.5 billion from ‘more than’ £1 billion before. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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