Adjusted profit before tax jumped 35% to £232.6 million, reflecting strong performances across Fit Out, Construction and Partnership Housing. Group PBTA margin rose to 4.6%, up from 3.8% last year.

Balance sheet strength remained a defining feature, with year‑end net cash rising to £531m and average daily net cash holding steady at £368m. The secured order book increased 5% to £12bn, with preferred bidder work lifting the total pipeline to £19.1bn.

Partnerships work continues to dominate the group’s long-term pipeline, rising 29% to £11.5bn, while Construction Services grew 4% to £5.8bn. Fit Out remained broadly stable at £1.8bn. Shareholders will receive a 20% increase in the total dividend to 158p per share. The group also retained its MSCI AAA ESG rating and secured a CDP A‑ rating for climate leadership.

Divisional performance

Partnership Housing (Lovell) delivered a strong and resilient performance despite subdued private sales. Operating profit rose 16% to £42m, with revenue up 5% to £903m. The division secured several major long-term public sector schemes totalling more than 6,000 homes over the next two decades.

Mixed Use Partnerships recorded an expected operating loss of £5.3m, reflecting investment in schemes due to start in 2026. Eight schemes moved from preferred bidder to signed agreements during the year.

Fit Out delivered another market‑leading year, with operating profit up 41% to £139.9m and revenue up 37% to £1.78bn, achieving a margin of 7.8%.

Construction grew operating profit by 20% to £37m on revenue of £1.16bn, maintaining margins within its medium‑term target range.

Property Services returned to profit following its remediation plan, delivering £2m after a £17.8m loss last year.

Infrastructure saw revenue fall to £935m as major frameworks moved into early-stage planning, but margins improved to 4.0%.

Given the strength of secured work and future prospects, Morgan Sindall has raised its medium‑term targets for both Infrastructure and Mixed Use Partnerships.

Chief executive John Morgan said the group’s decentralised model and long-term partnerships had underpinned a decade of consistent growth. “We achieved significant growth in adjusted profit before tax, up 35% from the prior year, and enter 2026 with a record order book,” he said. “Despite headwinds in the housing market, we remain positive for the year ahead.”

Lovell delivers record results as public sector demand drives growth

Lovell, Morgan Sindall’s partnership housing specialist, reported record results for 2025, reinforcing its position as one of the group’s strongest-performing divisions.

Revenue increased 5% to £903m, while operating profit rose 16% to £42m. The secured order book grew 7% to £2.33bn, with 60% of work already extending into 2026 and beyond.

Lovell’s partnership-led model continues to prove resilient amid a constrained housing market, with public sector demand offsetting slower open-market sales. The company delivered more than 5,000 new homes during the year, 85% of them affordable, matching previous performance benchmarks.

Managing director Steve Coleby said the results reflected “the strength of our long-term partnerships and the exceptional efforts from our employees”. He added that consistent demand from local authority and housing association partners had helped maintain a strong forward pipeline.

Margins improved across both contracting and mixed‑tenure delivery, supported by larger schemes progressing through development.

Lovell continued to invest in long-term regeneration partnerships across the UK. In Scotland, key projects included the 176‑home Winchburgh development, where 69 homes are being delivered for Wheatley Homes East with support from the Scottish Government.