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MarketBeat
Thu, March 5, 2026 astatine 6:07 AM CST 8 min read
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Serco delivered a "strong year" successful 2025 with gross of £4.9bn, underlying operating nett of £272m (margin 5.6%), exceptional currency procreation of £290m and 112% trading currency conversion, portion bid intake was £5.5bn leaving a grounds £12.1bn pipeline.
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The radical has sharpened its strategy astir 3 precedence sectors—defense, justness & immigration, and national services—with North America and UK & Europe driving maturation (defense ~40% of revenue) portion Asia Pacific declines are being addressed done right‑sizing and selective rebids.
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Capital allocation balances shareholder returns and indebtedness reduction: a recommended dividend of 4.5p (+8%), a caller £75m buyback (after a completed £50m), and 2026 guidance of astir £5.0bn gross and £300m underlying operating nett with adjusted nett indebtedness targeted adjacent £165m.
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Serco Group (LON:SRP) reported what absorption described arsenic a “strong year” successful 2025, highlighting dependable gross growth, resilient margins and continued currency procreation alongside advancement successful defense, justness and immigration, and national services. Chief Executive Officer Anthony Kirby said the twelvemonth was defined by “disciplined execution, beardown operational delivery, and continued strategical progress,” portion Chief Financial Officer Nigel Crossley noted show came “despite a fig of anticipated headwinds.”
Kirby besides announced Crossley volition discontinue aft much than 11 years with the company, including 5 arsenic CFO, and introduced Mark Reid arsenic his successor, who is expected to articulation the committee successful the coming days.
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For 2025, Serco reported gross of £4.9 billion, up 3% astatine changeless currency, with organic gross maturation of 1% successful enactment with anterior guidance. Underlying operating nett was £272 million, up 1% astatine changeless currency, producing a borderline of 5.6%, which Crossley said was wrong the group’s 5% to 6% people range.
Order intake totaled £5.5 billion, representing a 114% book-to-bill ratio, with much than two-thirds coming from the defence business, according to Kirby. Serco ended the twelvemonth with a £12.1 cardinal pipeline, which Kirby called the highest the institution has seen successful a decade. The company’s caller concern triumph complaint was reported arsenic over 30%.
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Cash conversion was described arsenic “exceptional,” with 2025 currency travel of £290 million and trading currency conversion of 112%. Crossley said the twelvemonth besides benefited from higher-than-usual mobilization enactment and associated deferred revenue. Adjusted nett indebtedness accrued to £206 million, from £100 cardinal astatine the extremity of the anterior year, driven by the £245 million acquisition of MT&S and shareholder returns, partially offset by currency generation. Year-end leverage was 0.7x EBITDA, beneath Serco’s stated 1x to 2x people range.
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