Serco Group (LON:SRP) Issues Earnings Results

Serco Group (LON:SRP) issued its quarterly earnings data on Thursday. The company reported GBX 17.31 EPS for the quarter, Digital Look Earnings reports. Serco Group had a return on equity of 5.67% and a net margin of 0.99%.

Here are the key takeaways from Serco Group’s conference call:

• Serco reported a strong FY2025 financial performance with £4.9bn revenue (+3% cc), £272m underlying operating profit (5.6% margin), exceptional cash conversion (112%), and 2026 guidance of around £5.0bn revenue and ~£300m underlying profit (c.6% margin).
• Defense expansion and the rapid integration of MT&S are core growth drivers — the group secured ~£3.5bn of defense contracts, defense now represents ~40% of revenue, MT&S added simulation/mission‑training and satellite capabilities and contributed early profit, and the pipeline hit a decade‑high £12.1bn.
• Revenue headwinds persist from immigration and Asia Pacific — immigration exits and the Hong Kong disposal contributed to Asia Pacific revenue falling ~18%, UK/Australia immigration is expected to be ~3% organic headwind in 2026, and adjusted net debt rose to £206m with net finance costs guided to ~£52m.
• Disciplined capital allocation and shareholder returns — strong cash generation enabled a recommended full‑year dividend up 8% to 4.5p, a completed £50m buyback in H2 2025 and a new £75m buyback for H1 2026, part of ~£650m returned since 2021.

Serco Group Stock Performance

Shares of LON SRP opened at GBX 307.20 on Friday. Serco Group has a 12-month low of GBX 150.50 and a 12-month high of GBX 313.20. The firm has a market capitalization of £3.04 billion, a price-to-earnings ratio of 61.20, a price-to-earnings-growth ratio of 3.06 and a beta of 0.51. The company has a current ratio of 0.91, a quick ratio of 0.98 and a debt-to-equity ratio of 109.84. The firm has a 50 day moving average of GBX 295.58 and a 200 day moving average of GBX 261.16.

Serco Group Company Profile