Davies to step down as Kier chief executive

Kier Group has announced that its chief executive Andrew Davies will retire on 31 October 2025.

He will be succeeded the following day by Stuart Togwell, currently executive director and group managing director of construction.

Davies joined Kier in 2019 and led the company through a major turnaround.

When he took on the top role, Davies had not worked in the construction industry after leaving his role as Wates chief executive in November 2017 to take over at Carillion. The latter company collapsed just one week before he was due to start.

He took over a firm under pressure since 2018 when concern over its debt level and low working capital forced the firm into a costly £250m rights issue to shore up the business.

His tenure has seen the firm’s return to the FTSE 250 and the resumption of dividend payments.

Kier’s net debt, which was over £310 million in 2020, was reduced to a net cash position of £64.1 million by June 2023.

Under his leadership, the group built a record £11bn order book and stabilised its financial position, the company said.

In a London Stock Exchange announcement in June, the £3.9bn-turnover firm said that trading for the first four months of the year “remains in line with expectations”.

Kier said its order book stood at £11bn by the end of April – up 2 per cent on the £10.8bn it reported at the end of its previous financial year to 30 June 2024.

He will remain employed during a 12-month notice period, with entitlements including a bonus for 2025 and a pro-rated award for 2026, subject to performance conditions.

Chairman Matthew Lester credited Davies with transforming the business and embedding a culture of “safety, delivery, discipline and performance excellence”.

Togwell, his successor, has been with Kier since 2008 and has played a central role in its transformation strategy.

His remuneration will be detailed in the company’s 2025 annual report and will follow the approved directors’ remuneration policy, the firm said.

Davies is currently the fourth highest paid figure in construction, according to the latest Construction News survey of executive salaries.

Togwell’s appointment follows a competitive selection process involving internal and external candidates, the firm said.