Category: Top Story

Balfour Beatty plc (LSE:BBY) shares jumped after the company reported strong results for 2025 and increased its planned share buyback, while also forecasting further profit growth in 2026.

The stock gained about 7% in London trading shortly after the announcement.

The group reported profit from operations in its earnings-based businesses of £293m for the year, supported by solid performance across both its UK and US operations. Analysts at Jefferies said the result exceeded their forecast of £272m.

One of the standout contributors was the Support Services division, which delivered margins of 8.5% in 2025—above expectations of 8.0%. The improvement was driven partly by increased activity on power infrastructure projects.

Overall operating profit for the year was £252m, broadly unchanged from the previous year. Net income increased to £239m compared with £227m in 2024. The company also reported a significant rise in net cash generated from operations, which climbed to £656m.

Average net cash reached £1.21bn over the year, slightly exceeding the company’s guidance range of £1.1bn to £1.2bn. The stronger cash position was helped by improvements in working capital management.

Balfour Beatty also confirmed plans to return additional capital to shareholders, announcing a £200m share buyback programme for 2026. The figure was higher than the £125m analysts had anticipated.

Looking ahead, the company expects profit from its earnings-based businesses to grow by a “high single-digit percentage” in 2026. Construction margins in both the UK and US are projected to improve, while the Support Services segment aims to maintain margins above 8% alongside continued growth.

“A ~7% beat on net profit and buyback raised to £200m should be well received,” analysts at Jefferies led by Graham Hunt wrote in a note. “Support Services was again a highlight, with margins beating expectations and now raised to >8%, supporting guidance for further earnings-based business growth in 2026 (HSD) and in 2027.”

Legal & General Group plc (LSE:LGEN) reported solid full-year results for 2025, with core operating profit rising 6% to £1.62bn and core earnings per share increasing 9%. The group generated £1.5bn of Solvency II capital during the year and maintained a strong solvency coverage ratio of 210%, highlighting the strength of its balance sheet.

The company also pointed to a £13.3bn store of future profit and unveiled plans to return more than £5bn to shareholders between 2025 and 2027. As part of this programme, the board announced a £1.2bn share buyback and approved a 2% increase in the dividend per share.

Operationally, Legal & General continued to expand across several key business areas. The group remained a major player in institutional pension risk transfer, completing £11.8bn of global transactions during the year. Its asset management division also grew significantly, with total assets under management reaching £1.2trn and private markets assets increasing by 32%.

The company reported further progress in workplace defined contribution pensions and retail annuity products, reinforcing its strategy of building complementary retirement, workplace and investment platforms. Management said the business is becoming more focused and integrated, with greater collaboration between its retirement, workplace and asset management segments expected to drive higher fee income and improved margins.

Looking ahead, the company’s outlook reflects a mix of supportive and challenging factors. Although some financial indicators show pressure on revenue growth and cash flow, technical signals point to positive market momentum. Recent corporate actions, including the large share buyback and continued capital returns, also indicate management confidence in future prospects. While the group trades at a relatively elevated price-to-earnings ratio, its strong dividend yield continues to attract income-focused investors.

More about Legal & General

Legal & General Group plc is a UK-based financial services group specialising in retirement solutions, asset management and retail insurance products. The company is a leading provider of defined benefit pension risk transfer services and operates a global asset management business with a growing presence in private markets. It is also expanding in defined contribution workplace pensions and retail annuities, aiming to support long-term savings and retirement outcomes for customers.

Hochschild Mining plc (LSE:HOC) delivered record financial results in 2025 as revenue increased 25% to $1.18bn and adjusted EBITDA climbed 39%, supported by strong operational performance at its Inmaculada mine and higher precious metal prices. Profit before tax more than doubled after exceptional items, while net debt dropped significantly to $22.7m, reflecting robust cash generation.

The company also proposed a higher final dividend, highlighting the strength of its balance sheet. This performance came despite somewhat higher all-in sustaining costs and slightly lower overall production during the year.

Operationally, the group produced 311,509 gold equivalent ounces, broadly in line with revised guidance. Performance was supported by steady output at the Inmaculada Mine and the San Jose Mine. The company also continued progress on improving operations at the Mara Rosa Mine, which is undergoing a turnaround process.

Exploration and development activities also advanced, with the company adding 1.7 million gold equivalent ounces to its resource base. Hochschild continued to move forward with expansion projects in Peru and Brazil while improving environmental, social and governance performance metrics, including safety and water efficiency.

For 2026, the company expects production to range between 300,000 and 328,000 gold equivalent ounces. The outlook includes higher sustaining capital expenditure and a brownfield exploration budget of around $45m to support long-term resource growth.

The company’s outlook is supported by improving financial performance, stronger margins and healthier cash flow. Technical indicators also show a strong upward trend in the share price. However, the valuation appears relatively full with a price-to-earnings ratio of about 23.5, while cost pressures and softer domestic sales noted during earnings discussions may create near-term risks. Overbought technical conditions could also lead to short-term volatility.

More about Hochschild Mining

Hochschild Mining plc is a precious metals producer focused on the exploration, mining, processing and sale of silver and gold. With more than five decades of experience in epithermal vein deposits, the company operates the Inmaculada underground mine in Peru, the San Jose underground mine in Argentina and the Mara Rosa open-pit gold mine in Brazil. It also maintains a pipeline of exploration and development projects across the Americas aimed at supporting long-term production growth.

Capita plc (LSE:CPI) said the UK energy regulator Ofgem has decided to disallow £11.425m of costs incurred by its wholly owned subsidiary Smart DCC for the 2024/25 regulatory year. The final figure is significantly lower than the £30.841m originally proposed and compares with a £20m disallowance recorded in the 2023/24 period.

Capita noted that such price disallowances form a routine part of the regulatory framework governing the Smart DCC contract. The group said the final determination reflects progress made on process improvements and cost efficiencies and is broadly consistent with the assumptions already incorporated into its 2025 financial results.

The company is also preparing for the transition of the smart metering network contract to a not-for-profit provider during the coming year. This change forms part of the evolving regulatory framework around the UK’s national smart meter infrastructure.

Capita’s overall outlook remains mixed. While technical indicators suggest positive market momentum and recent corporate developments offer some support, the company continues to face challenges including elevated leverage and pressure on cash flow. Regulatory considerations surrounding major contracts also remain a factor influencing investor sentiment.

More about Capita

Capita plc is a UK-based outsourcing and professional services group that supports public and private sector organisations in managing complex operational processes. The company focuses on improving customer and citizen experiences through people-led services supported by technology. Operating across eight countries and serving primarily UK and European clients, Capita plays a role in delivering essential services and infrastructure across multiple sectors.

Capita (LSE:CPI) said 2025 marked a significant step in its shift toward becoming an AI-led business process outsourcing provider, with around two-thirds of group revenue now supported by AI-enabled services and a growing bid pipeline valued at £19.8 billion. The company achieved £250 million in annualised cost savings during the year, helping adjusted operating profit rise 34% to £113.5 million and lifting the operating margin to 5.2%. However, the group remained loss-making on a statutory basis due to restructuring charges and a goodwill impairment linked to its Contact Centre business.

Operational performance varied across divisions. Public Service and Pension Solutions each delivered revenue growth of 4.5% and achieved margins above the group’s target levels. These gains helped offset a 17.5% revenue decline in the Contact Centres division, which continues to be affected by earlier contract losses. Capita increased the total value of contracts won by 36% to £2.1 billion and improved customer satisfaction to a record cNPS score of +31. The company also progressed its AI strategy through initiatives such as the AI Catalyst Stack and Catalyst Lab, while resolving several legacy issues, including exiting loss-making operations and settling matters related to a 2023 cyber incident.

Looking ahead to 2026, Capita expects adjusted revenue to grow at a low single-digit rate. Strength in public sector and pensions activities is expected to support performance, although ongoing pressure in the Contact Centres division and higher mobilisation costs may weigh on margins. Management forecasts a slight decline in operating margin but anticipates a return to positive free cash flow of £20 million to £40 million. The group also highlighted a stronger balance sheet, extended credit facilities and plans to introduce additional AI-powered products to strengthen its competitive position in regulated and public sector markets.

Capita’s overall outlook remains mixed. Financial performance is still affected by relatively high leverage and cash flow challenges, although recent corporate developments and strong technical momentum provide some positive signals. Valuation considerations and regulatory pressures continue to temper the investment outlook.

More about Capita plc

Capita plc is a UK-based provider of business process outsourcing and professional services, specialising in public services delivery, pensions administration and customer contact centre operations. The company is repositioning itself as an AI-enabled BPO provider by integrating artificial intelligence and digital technologies into complex workflows for government bodies, utilities and large enterprise clients operating in regulated markets.

Costain (LSE:COST) reported another year of profit growth despite lower overall revenue, with adjusted operating profit rising 9.3% to £47.1 million and operating margins improving to 4.5%. The improvement reflects the company’s strategic exit from lower-margin road contracts alongside strong performance in its natural resources and integrated transport divisions. Net cash increased to £189.3 million, supported by solid free cash flow, enabling the group to raise its dividend and continue share buybacks as it prepares to rejoin the FTSE 250 index.

The company’s forward work position expanded by 30% to a record £7 billion, representing nearly seven times annual revenue. This increase was driven by new contract awards and extensions across multiple sectors, providing strong visibility over future workloads. Management said the robust pipeline, together with opportunities linked to the UK’s long-term infrastructure investment plans in areas such as water, energy and aviation, supports expectations for further revenue and profit growth in 2026, with a more significant performance uplift anticipated from 2027.

Costain’s outlook reflects a strong financial position, supported by stable operational performance and continued contract wins. Technical indicators also point to positive momentum in the share price. However, relatively modest profit margins and some pressure on cash flow efficiency remain areas the company aims to improve. Overall valuation appears balanced, with the combination of solid fundamentals and a strong order book supporting a favourable outlook for the stock.

More about Costain

Costain Group is a UK-based engineering and construction company specialising in complex infrastructure projects across transportation, natural resources, energy, defence and water sectors. The company primarily works on large-scale, long-term projects for government bodies and regulated customers, benefiting from multi-year investment programmes and collaborative framework agreements focused on national infrastructure development.

Domino’s Pizza Group (LSE:DOM) reported full-year 2025 results broadly in line with its guidance, as modest increases in system sales and revenue were offset by lower underlying EBITDA and profit. Margin pressure within the supply chain and continued investment in operational capabilities weighed on earnings during the year. Despite a challenging consumer environment and slightly lower order volumes, the group generated strong free cash flow, maintained net debt within its targeted range, increased its dividend and continued to gain market share in both the overall takeaway sector and the UK pizza takeaway segment.

Management indicated that trading in 2026 is currently tracking in line with market expectations. The company expects store openings to be similar to those achieved in 2025, while the strong trading performance during the Christmas period has continued into the early part of the new year. Domino’s is focusing on strengthening its core operations through initiatives aimed at boosting revenue growth, accelerating digital engagement, expanding its market presence and improving cost efficiency. The strategy is supported by a robust supply chain, successful menu innovations such as the CHICK ‘N’ DIP product line and a growing customer loyalty programme designed to support long-term growth and value creation for customers, franchisees and shareholders.

The company’s outlook reflects a mix of positive and challenging factors. While valuation metrics appear attractive, with a relatively low price-to-earnings ratio and a high dividend yield, financial risks remain due to elevated leverage and negative equity. Technical indicators currently suggest bearish market momentum, though recent corporate developments and shareholder returns provide some support for the investment case.

More about Domino’s Pizza

Domino’s Pizza Group is the leading pizza delivery brand in the United Kingdom and a major operator in Ireland, holding the master franchise for Domino’s in these markets. The company operates and franchises 1,399 stores across the UK and Ireland and also owns a minority stake in Domino’s Pizza Poland. Its business model centres on takeaway and delivery-led pizza retail supported by franchise partnerships and a strong digital ordering platform.

Great Southern Copper (LSE:GSCU) has reported encouraging partial assay results from step-out diamond drill hole CNG25-DD042 at the Cerro Negro prospect in Chile, confirming that the Mostaza copper-silver system extends approximately 300–400 metres south of the historic mine workings. The drill hole intersected several mineralised intervals, including 21.8 metres grading 1.04% copper and 52.26 g/t silver, highlighted by a higher-grade section of 1.6 metres returning 6.55% copper and 319.75 g/t silver. The results also identified breccia zones enriched with lead, zinc and silver, reinforcing the interpretation of a structurally complex, stacked mineral deposit.

The latest drilling suggests the mineralised system is becoming thicker and more continuous further south, extending the defined copper-silver trend to more than 400 metres along strike. The system also remains open both at depth and beneath shallow cover. These findings will guide a fully funded Phase IV drilling campaign, which will focus on in-fill drilling aimed at linking Lens 2 mineralisation between the historic Mostaza mine and recent drill holes. Additional step-out drilling is planned to test the wider two-kilometre Mostaza Fault Zone, highlighting the broader growth potential of the project.

The company’s outlook remains influenced by early-stage financial characteristics typical of exploration firms. Great Southern Copper is currently pre-revenue, with widening losses and continued negative free cash flow, although it reports no debt on its balance sheet. Technical indicators are mixed to weak, with the share price trading below the 20-day moving average and momentum indicators relatively subdued. Valuation metrics are also limited due to the absence of earnings and dividend yield data.

More about Great Southern Copper PLC

Great Southern Copper is a London-listed exploration company focused on identifying and advancing copper, gold, and silver deposits in Chile. Its main activities centre on the Especularita Project, which includes the Cerro Negro prospect and the historic Mostaza mine area. The company is targeting structurally controlled, near-surface mineral systems that benefit from proximity to established mining infrastructure.