Morgan Sindall Group plc (LSE:MGNS) has raised its full-year 2026 earnings expectations, forecasting results slightly ahead of previous guidance following continued trading activity across its Fit Out, Construction and Infrastructure divisions. The group also announced a share buyback programme of up to £75 million.
The construction and regeneration group said its secured order book provides visibility through the remainder of 2026, while it maintained its expectations for 2027.
Construction Division Forecasts Double-Digit Profit Growth
Morgan Sindall expects its Construction division to deliver double-digit profit growth in 2026, materially above previous expectations.
The division reported £39 million in profit for 2025, with full-year 2026 operating margins now forecast at the upper end of its medium-term target range of 3.5% to 4.0%.
Revenue is expected to progress towards £1.5 billion, compared with £1.37 billion in 2025.
During the period, the division secured positions across all five lots of Pagabo’s £5 billion Major Works Framework, becoming one of two contractors appointed to every lot.
Fit Out and Infrastructure Maintain Profit Growth Outlook
The Fit Out division is expected to report full-year profit slightly above the £139.9 million achieved in 2025, supported by its existing order book.
Infrastructure is forecast to deliver double-digit profit growth from its 2025 base of £37.2 million, with revenue expected to approach £1 billion, compared with £935 million last year.
The division’s operating margin is expected to reach the upper end of its 3.75% to 4.25% medium-term target range.
Morgan Sindall also reported that two energy projects associated with the Great Grid Partnership have entered construction.
Partnership Housing Outlook Reduced
The group lowered its profit expectations for Partnership Housing, citing reduced consumer confidence and affordability pressures in the housing market.
Average capital employed in the division is now expected to range between £550 million and £580 million, compared with previous guidance of £500 million to £580 million.
Morgan Sindall expects the government’s Your First Home scheme to support first-time buyer demand across its operating regions from 2027 into 2028.
Meanwhile, Mixed Use Partnerships commenced seven projects during the first nine months of 2026, with another three planned before year-end.
The division is expected to report a full-year loss similar to the £5.3 million recorded in 2025, reflecting upfront investment costs associated with project starts.
£75 Million Share Buyback Announced
Morgan Sindall announced plans to repurchase up to £75 million of its shares, with the programme beginning on 5 November 2026 and expected to conclude towards the end of 2027.
The company said the decision followed a period of investment in its Partnership businesses and expectations of lower capital requirements going forward.
Average daily net cash between 1 January and 4 November 2026 was £400 million, compared with £362 million during the equivalent period last year.
Of the current-year balance, £51 million related to jointly controlled operations or funds designated for future supplier payments. The lowest daily net cash position during the period was £273 million.
Following the buyback announcement, Morgan Sindall expects average daily net cash for the full year to range between £390 million and £400 million.
Full-Year Outlook Revised Higher
Morgan Sindall now expects its 2026 results to be slightly ahead of previous forecasts, supported by higher anticipated contributions from Construction, Infrastructure and Fit Out.
The revised outlook incorporates reduced expectations for Partnership Housing and an anticipated loss in Mixed Use Partnerships.
The group maintained its expectations for 2027, citing its secured order book and capital allocation plans.
More About Morgan Sindall Group
Morgan Sindall Group plc (LSE:MGNS) is a UK construction and regeneration company operating across Fit Out, Construction, Infrastructure, Partnership Housing and Mixed Use Partnerships. Its activities include commercial construction, infrastructure development, residential housing and urban regeneration projects.
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