Keller Group Plc said in an update on Thursday that it remains on track to deliver full-year results in line with market expectations, supported by a record order book and continued operational improvements across its divisions despite a volatile macroeconomic backdrop and currency headwinds.
The FTSE 250 company said demand had softened in several regions and translational foreign-exchange effects remain a drag, but new project wins in its more resilient markets and solid tendering activity were underpinning confidence in both the near- and medium-term outlook.
Operational performance had improved further, and the group reiterated its typical second-half weighting.
In North America, the Foundations business performed well, maintaining the operational gains of recent years and delivering healthy margins even as pricing normalised from the unusually strong conditions of 2024.
The division also benefited from historic claim settlements.
Suncoast remained under pressure, with lower activity and softer pricing persisting amid a weakening US residential market.
Moretrench Industrial continued to perform strongly, and RECON delivered solid progress on a new LNG project in Louisiana.
The Europe and Middle East division continued to trade resiliently, although Keller said there were still no signs of a broad-based macro recovery in Europe.
Project delivery performance remained strong and in the Middle East the business benefited from the absence of losses associated with a previously challenging project.
In Asia-Pacific, performance stayed robust, driven mainly by Austral and India.
The foundations business in Australia benefited from project close-out settlements that helped offset softer market conditions.
Keller said it expected to approach a net cash position at year-end, reflecting continued strong performance and an emphasis on cash generation.
That, the board said, would give additional headroom within its net-debt-to-EBITDA target range of 0.5 to 1.5 times, compared with 0.2 times at the half-year stage.
The group continued its multi-year share buyback programme, launching a further £25m tranche on 29 September following the completion of the initial £25m phase earlier in the year.
Since then it had bought around 0.5 million shares for £7.8m.
Keller said the programme remains in shareholders' best interests, offering a way to return surplus capital while preserving financial flexibility for investment.
"Keller remains on track to deliver a full-year performance in line with market expectations for 2025, despite the ongoing FX headwind," said chief executive James Wroath.
"The group's sustained record-level order book and geographically diverse portfolio provides both visibility and resilience in the current mixed economic conditions, underpinning our confidence of continued delivery.
"Our strong balance sheet provides us with flexibility, enabling organic growth as well as targeted mergers and acquisitions, along with further financial returns to shareholders through share buybacks."
At 1003 GMT, shares in Keller Group were up 3.1% at 1,532p.
Reporting by Josh White for Sharecast.com.