Renew Holdings PLC

Latest Results (29.09.2026):

Renew Holdings PLC — half year (H1) ended 31 March 2026: The company reported a record H1 with revenue of £589.0m (up 3.5% year‑on‑year), adjusted operating profit of £33.4m (up 4%), adjusted EPS of 30.9p (up 10%) and an increased interim dividend of 7.00p (up 4.9%). Management cites strong organic growth across water, highways, rail and electricity T&D, robust cash generation (H1 free cash flow conversion 71%) and a growing order book of £945m, alongside post‑period strategic acquisitions that support confidence in full‑year expectations.

Revenue and profit

Group revenue rose to £589m (H1 2026) from £569m a year earlier. Adjusted operating profit increased to £33.4m (H1 2026) versus £32.0m (H1 2025), with an adjusted operating margin of 5.7% (up ~10bps year‑on‑year).

EPS and dividend

Adjusted EPS was 30.9p, a 10% increase from 28.2p in H1 2025. The board proposed an interim dividend of 7.00p per share (2025: 6.7p), reflecting continued dividend growth.

Order book and M&A

Order book increased to £945m (from £908m). Acquisitions are a material part of strategy: Emerald Power (acquired Oct 2025) is integrating, and management completed additional strategic purchases in the power and water markets post period end. The report also notes deferred consideration items related to prior deals (e.g., Excalon).

Cash, balance sheet and capital allocation

Renew highlights strong underlying cash generation with H1 free cash flow conversion of 71% and a five‑year average around 69%. The group continues active M&A while growing dividends; provisions include a maintained £10m provision for historic Allenbuild liabilities.

Returns and financial metrics

Return on capital employed (ROCE) in H1 was reported at c.27%, well above the company’s estimated WACC (~10%) and in line with its multi‑year track record of high returns. Management expects continued strong cash conversion and returns over the medium term.

Operational momentum and markets

Operationally, Renew reports record maintenance activity across rail, water and highways, strengthened positions on key frameworks (including Network Rail CP7), and expanded capabilities following acquisitions. Energy market activity is growing (including onshore wind and power distribution); civil nuclear performance was impacted by external industrial action but the pipeline remains healthy.

Outlook

Management states integration of recent acquisitions is progressing, underlying organic growth is expected to accelerate into H2, and the board remains confident in full‑year expectations given the strong order book, cash generation and strategic pipeline.