Serco Group (LON:SRP) Releases Quarterly Earnings Results

Serco Group (LON:SRP) issued its quarterly earnings results on Thursday. The company reported GBX 17.31 EPS for the quarter, Digital Look Earnings reports. Serco Group had a return on equity of 16.69% and a net margin of 2.97%.

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 SRP opened at GBX 307.77 on Friday. The firm has a market cap of £3.04 billion, a price-to-earnings ratio of 61.31, a PEG ratio of 3.06 and a beta of 0.51. The company has a quick ratio of 0.98, a current ratio of 0.93 and a debt-to-equity ratio of 57.74. The business’s 50 day moving average is GBX 296.24 and its two-hundred day moving average is GBX 261.72. Serco Group has a 52-week low of GBX 150.50 and a 52-week high of GBX 313.20.

Serco Group Company Profile