Renew Holdings PLC

RNWH

Equity

ISIN GB0005359004 / Valor 181831

LSE London Stock Exchange, SETS (2026-09-01)

GBP 9.70-0.72%

Renew Holdings PLC
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About company

Renew Holdings PLC is a UK-based company that provides specialist engineering services across various critical infrastructure sectors. The company operates through independently branded subsidiary businesses, delivering multidisciplinary engineering solutions. Its services encompass infrastructure civils, specialist drainage, lighting, and electricals, primarily for the strategic highways network under asset delivery framework agreements with National Highways. Renew Holdings is also involved in wireless telecoms network infrastructure, aviation support, and asset care. In the energy sector, the company supports the maintenance and upgrade of the UK's electricity distribution network and provides services to renewable energy sites, thermal power generation plants, and onshore wind turbines. Additionally, Renew Holdings plays a significant role in the rail industry as one of the largest providers of maintenance and renewals engineering services to Network Rail. The company also supports water infrastructure networks, including flood alleviation and river and coastal defense schemes, and undertakes high-hazard risk reduction operations at nuclear facilities, focusing on waste treatment, reprocessing, decommissioning, and decontamination.

Summarized from source with an LLMView SourceSector: Industrials

Financial performance

Reported group revenue £589m (+3.5% reported), adjusted operating profit £33.4m (+4%), adjusted operating margin 5.7% (up 10bps) and adjusted EPS 30.9p (+10%). Order book at 31 March 2026 was £945m (March 2025: £908m).

Dividend & capital allocation

Proposed interim dividend 7.00p per share, a 4.9% increase versus 6.7p in 2025. Continued focus on dividends alongside an active M&A pipeline and disciplined capital allocation including recent and post‑period acquisitions.

Cash generation & balance sheet

Strong cash generation with H1 free cash flow conversion of 71% (five‑year average ~69%). Company highlights a strong balance sheet, maintenance of a £10m provision for historic Allenbuild liabilities, and deferred considerations (total c.£23.6m, including £7.8m relating to Excalon).

Organic growth and margins

Organic revenue growth in H1 2026 was 2.2%, with reported growth 3.5%. Management states H2 growth should accelerate and that H1 margins are ahead of the prior year while full‑year margins remain within target ranges.

M&A and integration

Emerald Power (acquired October 2025) integrated and contributed in the period. Post‑period acquisitions expand capabilities in power and water: EDS (April 2026) and PWR‑X (May 2026). Management describes an active pipeline of bolt‑on opportunities aligned to its M&A criteria.

Operational markets & positioning

Business remains diversified across rail infrastructure, energy, highways and environmental/water markets with management noting record activity in water and rail frameworks, strengthened CP7 position with Network Rail, and expanding exposure in power, nuclear and renewables.

Returns & outlook

Return on capital employed was reported at 27% for H1 (five‑year average 27%) versus an estimated WACC of c.10%. Management reiterates confidence in full‑year expectations given the record order book, integration progress and strong cash generation. Summarized from source with an LLMView Source

Key figures

20.5%1Y

34.0%3Y

23.6%5Y

Performance

23.1%1Y

27.4%3Y

27.7%5Y

Volatility