Morgan Sindall Group (LON:MGNS) Announces Quarterly Earnings Results

Morgan Sindall Group (LON:MGNS) announced its earnings results on Wednesday. The company reported GBX 370 EPS for the quarter, Digital Look Earnings reports. Morgan Sindall Group had a return on equity of 21.60% and a net margin of 2.82%.

Here are the key takeaways from Morgan Sindall Group’s conference call:

• Strong FY25 financial results — revenues rose ~10% to just over £5bn, operating profit grew 39% to £260m, adjusted EPS was up 33% to 370p, net cash closed at £531m, and the board increased the four‑year dividend by 20%.
• Very large backlog and pipeline: secured + preferred‑bidder work at ~£19.1bn with an extended line‑of‑sight to ~£30bn including framework allocations, supporting medium‑term revenue visibility and ~55,000 homes in the group pipeline.
• Mixed divisional picture — Fit Out outperformed materially (revenues +37%, profit +41%) but is cyclically exposed and may see lower turnover next year; Mixed‑Use Partnerships recorded a £5.3m loss due to upfront scheme investment as on‑site activity scales up; Infrastructure won >£2bn of new work (notably energy/nuclear) despite a short‑term revenue decline as early‑stage design activity increased.
• Capital allocation and balance‑sheet emphasis — management is deliberately holding high cash (average daily net cash ~£368m, expecting >£400m in 2026) and prioritising investment in partnership businesses to support work winning and execution.
• Outlook and target changes — management raised medium‑term ROCE targets for Muse (towards 30%) and increased Infrastructure ambitions, and expects 2026 to be in line with its revised trading update though results remain sensitive to the housing market recovery.

Morgan Sindall Group Price Performance

LON:MGNS traded down GBX 220 on Wednesday, reaching GBX 5,110. 75,629 shares of the company’s stock traded hands, compared to its average volume of 281,405. The stock has a 50-day simple moving average of GBX 4,950.30 and a 200-day simple moving average of GBX 4,670.52. Morgan Sindall Group has a 12 month low of GBX 2,900 and a 12 month high of GBX 5,730. The firm has a market cap of £2.40 billion, a PE ratio of 16.44, a P/E/G ratio of -68.20 and a beta of 1.31. The company has a quick ratio of 0.87, a current ratio of 1.18 and a debt-to-equity ratio of 18.51.

Morgan Sindall Group Company Profile

Morgan Sindall Group plc, the Partnerships, Fit Out and Construction Services Group, reported an annual revenue of £4.5bn in the full year 2024. The Group employs over 8,000 employees and operates in the public, regulated and private sectors. It reports through six divisions of Partnership Housing, Mixed Use Partnerships, Fit Out, Construction, Infrastructure and Property Services.