Keller reaffirms outlook after strong start to the year

(Sharecast News) - FTSE 250 contractor Keller Group reaffirmed guidance on Wednesday despite "significant" macroeconomic and geopolitical uncertainty, following a robust start to the year.

Updating investors at its annual general meeting, the specialist geotechnical engineer said the "strong" trading seen in the first four months of the year had been in line with expectations, particularly in its North American foundations operations.

The order book now stands at around £1.7bn, with "buoyant" tendering activity and good visibility across all divisions.

The 166-year-old firm acknowledged there was "significant" macroeconomic and geopolitical uncertainty, but said it was managing inflationary pressures by increasing prices on new contracts and utilising existing contractual mechanisms.

It continued: "Overall, management remains confident that the improved operational financial performance experienced in recent years will be sustained and that the group will deliver a full-year result in line with the board's expectations."

As at 0945 BST, the stock was up 2% at 2,298p.

Chief executive James Wroath said: "We continue to target potential bolt-on opportunities across our markets and remain confident in our ability to sustain this momentum and deliver strong performance through the remainder of 2026."

Keller is due to publish interim numbers on 4 August.

Berenberg, which has a 'buy' rating on the stock, said: "With parts of the US construction market being very buoyant at present, we believe there will likely be some pockets of the North American portfolio that are doing really well, notably those relating to certain data centre projects as well as some larger road remediation schemes.

"Given the significant disruption caused to trading patterns in the Middle East, it is also encouraging that management noted broader portfolio resilience."

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