Kier CEO Davies to retire in October, shares fall; FY25 results to be in line
Investing.com -- Kier Group (LON:KIE) reported strong full-year trading, with revenue and profit expected to be in line with board expectations.
The update came alongside news that Chief Executive Andrew Davies will step down at the end of October. Davies will be succeeded by Stuart Togwell, currently the Group Managing Director of Construction.
Kier shares dipped over 5% following the announcements.
The company ended fiscal year 2025 (FY25) with a record £11 billion order book, securing 88% of projected revenue for FY26.
Free cash flow (FCF) generation was strong, lifting the year-end net cash position to £204 million, a 22% increase from the prior year.
Average month-end net debt improved to £49 million from £116 million in FY24, reflecting healthy cash generation across the group.
Kier said its Water business saw rising activity tied to AMP8, offsetting more modest growth in Transportation and steady volumes in Construction.
The Property unit completed three major developments and made progress toward its return on capital targets.
New wins included a £139 million contract with Severn Trent (LON:SVT), early works for Southern Water, and significant education and research projects in Scotland and the West Midlands.
The company also announced that its CEO Andrew Davies will retire on 31 October 2025.
Chairman Matthew Lester praised Davies for his “exceptional leadership” over the past six years, noting that under his tenure, Kier strengthened its financial position, returned to the FTSE 250, reinstated dividends, and built a record order book.
Davies said it had been “a privilege to lead Kier and to transform the Group into a strong and sustainable business.”
He will be replaced with Stuart Togwell, who has been with Kier since 2008 and has been instrumental in driving the company’s transformation strategy.
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