Morgan Sindall Group (LSE:MGNS) saw its shares climb more than 9% on Thursday after the company upgraded its full-year 2026 profit expectations, citing stronger-than-anticipated trading across key divisions.
“Group PBT is expected to be significantly ahead of previous expectations,” the company said in its trading update.
The UK-based construction, fit-out, and partnerships specialist pointed to improved visibility for the remainder of the year, supported by robust performance in its Fit Out and Construction segments.
Within Fit Out, the group highlighted increased confidence in converting its pipeline of tender opportunities, with profits now expected to surpass earlier forecasts and exceed the upper end of its medium-term target range.
In Construction, the operating margin is now projected to reach the top end of its 3.5% medium-term target, underpinned by strong project delivery and disciplined risk management. The division’s order book remains healthy, with a large share at preferred bidder stage, providing good visibility toward revenues of around £1.4 billion.
In Partnerships Housing, private home sales improved in the first quarter compared with the end of 2025, although market conditions remain subdued overall. Profits in this segment are expected to grow modestly year on year, with average capital employed forecast between £490 million and £550 million.
Mixed Use Partnerships is expected to perform in line with prior guidance, having commenced four new schemes during the first quarter, with further developments planned throughout the year. Average capital employed in this division is projected to range between £135 million and £150 million.
The Infrastructure division is on track to deliver an operating margin within its 3.75% to 4.25% target range, with revenues expected to remain stable.
For the period from January 1 to April 14, the group reported average daily net cash of £445 million, reflecting continued investment in its Partnerships activities. Full-year average daily net cash is now expected to exceed £400 million, broadly in line with previous guidance.
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