Keller Group ended its latest financial year with a record £1.6bn order book and double-digit profit growth, aided by higher demand for geotechnical services in North America.
For the year ending 31 December 2024, revenue at the London-headquartered specialist contractor reached £3.1bn, up 5 per cent from £2.95bn in 2023.
Higher turnover helped to generate a 46 per cent increase in pre-tax profit from £125.6m to £183.9m.
The resulting 5.9 per cent profit margin was broader than the previous year’s 4.3 per cent.
The group’s North American division remained a major contributor to its success, with a 4.2 per cent turnover growth to £1.78bn.
However, US-based cable manufacturing subsidiary Suncoast saw pressure on profitability due partly to a slowdown in residential construction.
Despite revenue growth of 5.5 per cent to £835.1m, Europe and the Middle East continued to present difficulties amid a “challenging” pricing environment and reduced residential and commercial sector activity, Keller stated in its London Stock Exchange announcement yesterday (4 March).
Despite these issues, management interventions led to improvements in some underperforming projects, though one significant unnamed Middle Eastern project remained loss-making.
Revenue from Keller’s Asia-Pacific division fell by 2.1 per cent to £365.8m, despite strong performances in India and Australia driven by government orders.
Keller reported a record year-end order book of £1.6bn compared with £1.5bn in 2023. Speaking to Construction News, chief executive Michael Speakman pointed to the company’s diverse geographic portfolio as a key factor in maintaining resilience in uncertain economic conditions.
“Strategically, I’m encouraging the teams to be more agile in whatever we do,” he added. “Rather than spending energy trying to predict what will happen where, it’s better to invest in the ability to react quickly when changes occur.”
This agile approach is particularly relevant given shifting government infrastructure priorities around the world, Speakman added. He acknowledged that changes in spending patterns — whether towards defence or on energy infrastructure — will shape opportunities for his firm.
“Some of that defence spending will be on military infrastructure, which, from our point of view, is a good thing,” he said.
Speakman also highlighted Keller’s selective approach to project bidding, emphasising the importance of working with clients who share the company’s risk management principles. “Sometimes, it’s worth walking away from an opportunity rather than landing a bad one. Once we commit to a contract, we fulfil it,” he told CN.
The UK market remains a minor part of London-based Keller’s overall business, which in Speakman’s words accounted for just “2 or 3 per cent” of its 2024 revenue.
There was no specific country-by-country revenue breakdown in the latest announcement. But Keller Ltd, the group’s UK business, posted turnover of £124.6m and pre-tax profit of £4.6m in 2023.
This put it in second place in CN’s annual Specialists Index for ground engineering.
Keller’s UK business is involved in infrastructure projects such as the HS2 high-speed rail line from London to Birmingham. This remains Keller’s largest UK project, Speakman confirmed, though globally the company is engaged in even bigger contracts.
Asked about the potential impact of US steel tariffs on the business, Speakman acknowledged a “very limited impact” on Keller’s Suncoast business.
However, while Keller has been able to manage the immediate effects of these tariffs, the longer-term implications remain uncertain. “A lot of steel already had significant tariffs on it,” Speakman said. “This is just a more comprehensive regime of tariffs than before. Our cost increases are built into future pricing cycles, but volatility in the global steel market means we have to stay ahead of potential disruptions.”
To navigate these risks, Keller has diversified its supplier base and incorporated inflation protection into its contracts.
Keller’s stock exchange announcement acknowledged “the uncertain geopolitical and macroeconomic environment in the short-term” but the firm said it still anticipated “further progress in 2025” on turnover and profitability.
“We have to be agile in managing supply chain risks. We’re making sure we have alternative sourcing strategies so that we’re not overly reliant on any one region,” Speakman told CN. “It’s about staying ahead of challenges before they become critical.”
