Morgan Sindall hails another 'record' full year, lifts medium-targets for two units

(Sharecast News) - Morgan Sindall hailed another record full-year performance on Wednesday as it hiked its dividend and lifted medium-term targets for its Infrastructure and Mixed Use Partnerships businesses. In the year to the end of December 2025, adjusted pre-tax profit rose 35% to £232.6m on revenue of £5bn, up 10% on the previous year. Operating profit increased 39% to £225.7m and the company lifted its total dividend per share by 20% to 158p.

Morgan Sindall - which lifted its full-year expectations in an update two weeks ago - said the high quality secured order book was up 5% at £12bn, with preferred bidder work increasing to £7.1bn, totalling £19.1bn.

The company highlighted a "strong and resilient performance" from the Partnership Housing segment, despite the slow levels of activity in the private housing market, as it continued to strengthen its long-term partnerships with the public sector through the award of a number of large strategic schemes. Operating profit rose 16% to £42m and revenue was up 5% to £903m.

In the Mixed Use Partnerships unit, the trading performance continued to reflect expensed investment costs for schemes planned to start on site in 2026 and those representing future opportunities, which resulted in an expected operating loss of £5.3m, versus an operating profit of £1.5m the year before.

Morgan Sindall said Fit Out delivered another "significant and market-leading performance", with operating profit up 41% to £139.9m and revenue 37% higher at £1.8bn.

Construction delivered a strong performance, it said, with operating profit 20% higher at £37m and revenue up 11% to £1.2bn.

Property Services delivered a modest operating profit of £2m in the year, versus a loss of £17.8m the year before, while the Infrastructure business saw operating profit dip 3% to £37.2m, while revenue fell 11% to £935m.

The company lifted its medium-term targets for Infrastructure and Mixed Use Partnerships, "as a result of the market position held, together with the quality of work secured and future prospects".

For Mixed Use Partnerships, it now expects return on capital up towards 30%, having previous forecast up towards 25%. For Infrastructure, the company expects revenue up towards £1.5bn, up from £1bn.

Chief executive John Morgan said: "Looking ahead, and despite some of the current headwinds in the housing market, we remain positive for the year ahead and are on track to deliver an outcome for 2026 which is in line with revised expectations as set out in our Trading Update released on 12 February 2026."

The company had already said in its update earlier this month that the Fit Out division was set to have another strong year, with profits lower than 2025 but still "significantly above" the top end of the medium-term target range of £80m to £100m, "driving a group outlook for 2026 also ahead of expectations".