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(Sharecast News) - Shares in Galliford Try sparked on Wednesday, after the construction group posted a jump in earnings amid strong trading.
Revenues at the FTSE 250 firm rose 6.3% in the 12 months to 30 June, to £1.9bn, while adjusted operating profits surged 37.2% to £40.6m, ahead of expectations. The order book was nearly 8% higher at £4.1bn.
Galliford said revenues had been driven by a "robust" performance in its highways division and ongoing contracts in the water industry.
Looking to current trading, Galliford said trading momentum had continued into the new financial year, slightly ahead of expectations.
It continued: "Given the government's recently expanded commitment to the required investment in the UK's social and economic infrastructure, we see a strong pipeline of new opportunities across our chosen sectors over the next few years."
As at 0915 BST, shares in Galliford were up 6% at 456p.
Bill Hocking, chief executive, said: "Our robust risk management, balance sheet strength, professional and committed teams and strong relations with clients and suppliers enables us to successfully deliver projects and consistently add value to stakeholders.
"With 92% of projected revenue of the current financial year, and 75% of the 2027 full-year, already secured, the government's future spending plans and our aligned sector focus, we are confident in the outlook for our group."
Galliford works across a number of UK sectors. As well as water and highways, it is a key contractor in defence, custodial, education and affordable homes.
Berenberg, which has a 'buy' rating on the stock, said: "The group has delivered a fifth year of sequential growth, achieving its 2026 full-year divisional adjusted operating margin target one year early.
"Given the strong and growing order book, as well as the continued margin progress, we have increased our earnings estimates and have raised our price target from 510p to 530p."
