Infrastructure group Galliford Try (LON:GFRD) posted FY26 earnings which beat market forecasts and maintained its confident outlook. The firm also announced a new £15 million capital return capital by way of a new share buyback programme.
Earnings beat expectations
Galliford specialises in water and wastewater projects, highways, education, defence, prisons, facilities management and health. It also has a growing presence in affordable homes and the energy sector.
Revenue for the year to June 2026 rose 3% to £1.93 billion driven by Highways work and the start of AMP8 in the Environment division. Pre-tax profit rose 24% to £55.9 million, driven by higher volumes, quality delivery and disciplined cost management.
The group has a key role in the government’s spending plans to improve the country’s critical economic infrastructure. Its confident outlook is underpinned by a £4.3 billion order book giving it visibility over 90% of current-year revenue and 62% of FY28 revenue.
Galliford Try FY26 results
| FY2026 | FY2025 | Change | |
| Revenue (£m) | 1,931 | 1,875 | 3% |
| Adj operating profit (£m) | 49.5 | 40.6 | 22% |
| Adj pre-tax profit (£m) | 55.9 | 45.0 | 24% |
| Adj EPS (p) | 42.4 | 34.4 | 23% |
| FY DPS (p) | 23.5 | 19.0 | 24% |
Source: Company accounts
A solid balance sheet and a new buyback
The group has a strong balance sheet and generates considerable cash flow. Average month-end cash during FY26 was £216 million, up 21% on FY25. Meanwhile, year-end cash was up 9% to £259 million or 43% of the current market cap.
The balance sheet is debt-free, there are no pension liabilities and the revolving credit facility remains undrawn. Therefore, as well as raising the total dividend by 24%, the firm has the capacity to buy back £15 million of its own shares.
Galliford is one of a long line of infrastructure firms posting better than expected results this year. As we always say, being a trusted partner on big-budget government projects is nice work if you can get it.
The problem with Galliford is past earnings have been hugely cyclical, which makes valuing it tricky. On an adjusted basis, earnings per share are still below where they were 20 years ago, which doesn’t make for a flattering picture.
Suffice to say we wouldn’t be chasing the shares after the strong run of recent years. Stocks like Balfour Beatty (LON:BBY) and Costain (LON:COST) have more consistent earnings and look better value for money to us.
