Morgan Sindall £5bn turnover: orderbook, margins and risks for project teams
Reviewed by Tom Sullivan
First reported on The Construction Index
30 Second Briefing
Morgan Sindall Group lifted 2025 pre-tax profit 35% to £231.8m on revenue up 10% to £5.02bn, with chief executive John Morgan citing a record secured orderbook and preferred bidder pipeline of £19.1bn, up 17%. Fit-out was the standout division, with operating profit up 41% to £139.9m on £1.78bn revenue and a 7.8% margin, while Construction grew profit 20% to £37.0m on £1.16bn revenue. Infrastructure revenue fell 11% to £935m and profit slipped 3% to £37.2m due to early-stage framework design work, as the group raised medium-term targets for Infrastructure and Mixed Use Partnerships.
Technical Brief
- Adjusted profit before tax reached £233m, slightly above the statutory £231.8m headline figure.
- Infrastructure revenue drop is explicitly linked to early-stage planning and design on newly awarded frameworks.
- Partnership Housing delivered £42.0m operating profit from £903m revenue, indicating relatively higher margin than Construction.
- Group-wide performance is driven through five decentralised, “empowered” business units rather than a centralised delivery model.
- Average daily cash position is described as “substantial”, supporting bid bonding, framework mobilisation and long-lead procurement.
- Dividend uplift to 158p per share signals confidence in cash generation from long-duration construction and infrastructure work.
- 10-year adjusted PBT compound annual growth rate of 18% suggests sustained expansion of workload and risk appetite.
Our Take
Within our 734 Infrastructure stories, very few UK contractors show a 10‑year adjusted profit before tax CAGR as high as the 18% reported by Morgan Sindall Group, which signals a structurally lower-risk balance sheet and more headroom to absorb cost shocks on long-duration frameworks.
The £19.1bn secured and preferred-bid orderbook entering 2026 positions Morgan Sindall Construction and Infrastructure as key counterparties on upcoming UK public-sector and regulated-utility programmes, which may give them pricing and risk-sharing leverage compared with smaller tier‑twos in our database.
The combination of relatively modest construction operating margins and strong Partnership Housing and fit-out profitability suggests that, in the UK market, mixed-tenure housing and interiors work are increasingly cross-subsidising thin-margin heavy civils delivery for diversified groups like Morgan Sindall.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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