{"id":528873,"date":"2025-09-17T11:47:13","date_gmt":"2025-09-17T10:47:13","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=528873"},"modified":"2025-09-17T13:42:22","modified_gmt":"2025-09-17T12:42:22","slug":"galliford-try-doubles-profit-as-sector-rebalance-reaps-rewards","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/contractors\/galliford-try\/galliford-try-doubles-profit-as-sector-rebalance-reaps-rewards-17-09-2025\/","title":{"rendered":"Galliford Try doubles profit as sector \u2018rebalance\u2019 reaps rewards"},"content":{"rendered":"

Galliford Try has more than doubled its profit after a long-term \u201crebalance\u201d at the firm has started to take effect.<\/p>\n

Galliford Try<\/a> chief executive Bill Hocking told Construction News <\/em>he was \u201creally pleased\u201d with his firm\u2019s results, after pre-tax profit more than doubled from \u00a319.2m to \u00a344.1m in the year to 30 June 2025.<\/p>\n

This meant the firm achieved a 3 per cent adjusted operating margin a year ahead of its target, increasing it from 2.5 per cent in the prior year.<\/p>\n

Turnover at the UK\u2019s 15th<\/sup> biggest contractor also<\/a> inched up to \u00a31.9bn from \u00a31.8bn, representing a \u201cfifth year of sequential growth\u201d, according to its accounts.<\/p>\n

Infrastructure led the way at Galliford Try for the third year running, \u201cdriven by AMP7 run-off in environment and robust highways performance\u201d, according to the contractor\u2019s accounts.<\/p>\n

Profit for its infrastructure businesses shot up by more than a third to \u00a327.4m from \u00a320.1m, while turnover also grew from \u00a3810.7m to \u00a3902.5m.<\/p>\n

Despite turnover nearing \u00a32bn, Hocking remained coy on plans to achieve that milestone in the coming year. Instead, he expects results to \u201cflatten\u201d briefly as the government\u2019s water pipeline \u2500 known as Asset Management Period 7 (AMP7) \u2500 transitions into AMP8 next year.<\/p>\n

But he stood by Galliford Try\u2019s aim to increase turnover to \u00a32.2bn by 2030.<\/p>\n

\u201cWe\u2019ve grown dramatically over the past few years, [but] I don\u2019t expect that trajectory to carry on so much this year, because you can\u2019t carry on growing at that rate,” he said.<\/p>\n

Hocking also told CN <\/em>the increased focus on infrastructure was a long-term ambition, and that it now makes up almost half of Galliford Try\u2019s yearly work book, a vast change from five years ago.<\/p>\n

\u201cIf you go back something like five years, you would have seen that the business was probably 80 per cent building and 20 per cent infrastructure work,\u201d he said.<\/p>\n

\u201cWhereas for this year, the spread was something like 52 per cent building [and] 48 per cent infrastructure.<\/p>\n

\u201cWe are seeing a rebalance, I suppose, of the company more in favour of the infrastructure sector \u2500 the really big opportunities for growth are water, energy and roads.\u201d<\/p>\n

He expects infrastructure projects to make up half of Galliford Try\u2019s work this year and form the majority of the firm\u2019s work by the end of 2030.<\/p>\n

Some of the biggest contracts it snapped up in infrastructure over the year included a place on the \u00a359bn National Grid Framework and a \u00a366.5m job at the Banwell Bypass in Somerset<\/a>.<\/p>\n

Cash at Galliford Try grew to \u00a3237.6m from \u00a3227.0m in the period, while the firm launched a \u00a310m share buyback programme following its \u201cstrong cash delivery in the period and the enhanced order book\u201d going forward. That followed the completion of another \u00a310m buyback programme in May.<\/p>\n

Though ISG\u2019s collapse last year impacted the sector, Galliford Try\u2019s building business has since swept up \u00a3133m-worth of projects that had been contracted to ISG before it went under, according to its results \u2500 including a \u00a361m project to build new houseblocks at HMP Birmingham<\/a>.<\/p>\n

Hocking emphasised that was the only ISG project his firm had picked up midway through construction, and that the rest did not have \u201cboots on the ground\u201d before ISG collapsed.<\/p>\n

He also confirmed that Galliford Try had picked up some former ISG projects in the education sector.<\/p>\n

Many of its major projects in the building sector were for work in prisons and defence, according to its annual report, including the \u00a356m fire safety job at HMP Moorland <\/a>and a \u00a363m project to deliver single living accommodation at RAF Digby in Lincolnshire<\/a>.<\/p>\n

Given the prime minister\u2019s commitment to increase defence spending to 2.5 per cent of GDP<\/a> by April 2027, Hocking said the defence sector is \u201cpretty buoyant\u201d and that his firm would \u201cabsolutely\u201d be looking to benefit from the expected boom in defence construction work.<\/p>\n

Off the back of its financial successes, Galliford Try increased its full dividend payment to 19p per share, a rise of nearly a quarter on the year prior.<\/p>\n

Galliford Try also confirmed an order book of \u00a34.1bn, up from \u00a33.8bn. In its accounts, it emphasised how diversified its order book is \u2500 with projects in education, defence, prison, facilities management and commercial each making up more than 15 per cent of its order book.<\/p>\n","protected":false},"excerpt":{"rendered":"

Galliford Try has more than doubled its profit after a long-term \u201crebalance\u201d at the firm has started to take effect. Galliford Try chief executive Bill Hocking told Construction News he was \u201creally pleased\u201d with his firm\u2019s results, after pre-tax profit more than doubled from \u00a319.2m to \u00a344.1m in the year to 30 June 2025. This …<\/p>\n","protected":false},"author":90643,"featured_media":494847,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[549,552,533],"tags":[],"class_list":["post-528873","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-civils","category-financial","category-galliford-try","issue-online-news"],"yoast_head":"\nGalliford Try doubles profit as sector \u2018rebalance\u2019 reaps rewards | Construction News<\/title>\n<meta name=\"description\" content=\"Galliford Try has more than doubled its profit after a long-term \u201crebalance\u201d at the firm has started to take effect. 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