EL7.AI
StocksMedium•5 November 2026•
4 min read

Morgan Sindall raises 2026 outlook and announces share buyback of up to £75 million

Key Facts

1Morgan Sindall raised its expectations for fiscal 2026 results to slightly above its previous estimates in a 5 November 2026 update.
2The board approved a share buyback of up to £75 million, capped at 4,802,708 shares.
3The company expects double-digit profit growth at Construction in 2026, with revenue approaching £1.5 billion.
4Average daily net cash was £400 million between 1 January and 4 November 2026, compared with £362 million in the comparable period.

In a trading update issued on 5 November 2026, Morgan Sindall raised its expectations for fiscal 2026 results, saying they were likely to come in slightly above its previous estimates. The company attributed this to continued trading momentum and clear visibility over secured orders through year-end. At the same time, the board approved the return of up to £75 million to shareholders through the purchase of ordinary shares in the market. The programme is capped at 4,802,708 shares. The announcement therefore combines an improved operating outlook with the return of some surplus capital, while performance varies across the group’s divisions.

In its Construction division, the company forecast double-digit profit growth in fiscal 2026, saying growth would be significantly ahead of its previous expectations. The division’s revenue is approaching £1.5 billion, while its operating margin is expected to be at the upper end of its medium-term target range of 3.5% to 4.0%. The division reported a profit of £39 million in fiscal 2025, according to the company. These indicators point to expected improvement in profit, revenue and margins. The update did not give a final figure for the division’s 2026 profit, instead describing its expected trajectory relative to the previous year’s results and earlier expectations.

Morgan Sindall also forecast double-digit profit growth at Infrastructure in 2026, with revenue approaching £1 billion. It said the annual operating margin was expected to reach the upper end of its target range of 3.75% to 4.25%. The division reported revenue of £935 million in fiscal 2025 and profit of £37.2 million. These figures put the new expectations in the context of the previous revenue and profit base, without the company announcing a final result for the current year. Infrastructure’s expected performance forms part of the company’s account of growth ahead of previous estimates in some activities.

For its Fit Out division, the company said it continued to deliver strong profits and that its visible order book supported its expectation of an annual result slightly above the previous year. The division reported operating profit of £139.9 million in fiscal 2025, the comparison base cited by the company. The forecast does not imply that 2026 profit will exceed this figure by a wide margin; Morgan Sindall described the expected increase as slight. By contrast, it said Partnership Housing profit fell short of its previous expectations. The differing performance across divisions underscores the group’s view that overall results are likely to exceed its earlier estimates.

The board announced the share buyback programme as a way to return surplus capital to shareholders, setting a total cap of £75 million and a maximum purchase of 4,802,708 ordinary shares. Purchases will be made in the open market, and shares bought by the company will be cancelled. The timing of transactions will depend on market conditions, the share price and trading volume, according to the programme announcement. The board linked the surplus to strong cash generation and lower capital requirements following a period of substantial investment in its two partnership businesses. The company said it expected lower capital requirements in future and would continue to review the level of surplus cash regularly.

On liquidity, average daily net cash was about £400 million between 1 January and 4 November 2026, compared with £362 million over the same period in 2025. The lowest cash level during the 2026 period was about £273 million. For the full fiscal year, the company expects average daily net cash of between £390 million and £400 million. This forecast appeared in the update alongside the buyback announcement, without the company attributing a change in its cash outlook to funding the programme. First-half 2026 results showed group revenue of £2.562 billion and adjusted operating profit of £111.5 million, with net cash of £418 million at period-end.

The shares rose following the update in the 5 November session, gaining 9.5% to 4,531 pence, according to Alliance News’ report on UK share movements. For fiscal 2027, Morgan Sindall said it continued to expect performance to be in line with current expectations, citing the diversity of the group’s operations, clear visibility over next year’s order book and disciplined capital allocation. It also expected a government programme for first-time homebuyers to support demand from next year through 2028. The company said expected support for housing demand was part of its outlook for the coming period, alongside its expectation that visibility over secured work would continue. The update did not provide new figures for 2027 profit.