Shares in Morgan Sindall (MGNS) hit a new all-time high after the firm raised its FY26 financial outlook. The FTSE 250 firm is involved in construction, urban regeneration and fitting out and refurbishing office buildings.
| Share price: £53.50 (+6%) | PE: 14.5x |
| Market cap: £2.4bn | Yield: 3% |
Leading role in Fit Out
The group said all divisions performed well in 2025 and it was ‘on track’ to deliver results in line with expectations. The current Stockopedia FY25 consensus is for revenue of £5.1 billion, net profit of £355 million and EPS of 355p.
Morgan Sindall also said it made ‘significant strategic progress’ across sectors and started 2026 with a record secured order book. It also secured more work at ‘preferred bidder’ stage, up 19% to a record £19.1 billion.
The firm noted an increase in confidence among clients to progress from preferred bidder to actually starting work. It also saw an increase in future tender opportunities for the Fit Out division, providing improved revenue visibility.
Therefore, profit at the Fit Out division will be ‘significantly’ ahead of previous estimates. Moreover, profit will be above the middle of the firm’s medium-term target of £80 million to £100 million.
Morgan Sindall is a quality business and was a previous Tip of the Year, so we aren’t surprised by today’s update. The company continues to outperform expectations, so it makes sense for the shares to keep beating the market.
If FY26 Fit Out profits are going to top forecasts, it means group profits are going to top forecasts. The current consensus sees FY26 revenue, net profit and EPS below FY25, so analysts are way behind the curve.
Read the press release here: https://www.morgansindall.com/investors/regulatory-news
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