Morgan Sindall has raised its full-year profit forecast and launched a £75 million share buyback, after stronger-than-expected trading in its construction business. The contractor said on Thursday 5 November that its results for the year to 31 December 2026 were expected to come in slightly ahead of previous expectations, supported by secured orders.

The buyback

The board has authorised the return of up to £75 million of surplus capital to shareholders through a share buyback programme. It began on 5 November and runs until no later than 4 November 2027. Up to 4,802,708 ordinary shares may be repurchased, and all shares bought back will be cancelled, reducing the company's share capital. Deutsche Numis and BofA Securities have been appointed to run the purchases.

Construction leads the upgrade

The group's Construction division is expected to deliver materially higher double-digit operating profit growth, with revenue progressing towards £1.5 billion, compared with £1.37 billion in 2025. Its Infrastructure division is expected to generate revenue approaching £1 billion, against £935 million last year, with double-digit operating profit growth.

Housing remains the weak spot

Not every part of the group is performing. Partnership Housing profits are expected to come in below previous expectations, amid weak consumer confidence and housing affordability pressures. Mixed Use is expected to report a loss similar to the £5.3 million recorded in 2025. Even so, the group said its outlook for 2027 remained in line with current expectations.

A strong cash position

Morgan Sindall reported average daily net cash of £400 million between 1 January and 4 November, up from £362 million in the same period last year. After announcing the buyback, it lowered its forecast for full-year average daily net cash to between £390 million and £400 million.