Serco Group PLC on Wednesday upgraded its guidance for underlying operating profit for this year, citing growth in the defence sector, as it announced a new chief financial officer starting in March.
The Hampshire, England-based government services outsourcing provider said it now expects 2025 underlying operating profit of around £270 million, up 3.8% from previous guidance of £260 million but 1.5% lower than £274 million in 2024.
Serco kept its 2025 revenue guidance unchanged at £4.9 billion, which would be up 2.4% from £4.7 billion in 2024.
Further, it issued initial 2026 guidance, expecting an underlying operating profit of £300 million on revenue of £5.0 billion.
Chief Executive Officer Anthony Kirby said: ‘The global government services market is substantial, with high barriers to entry and strong growth prospects, particularly in the defence sector. Our significant order intake, of which around two thirds is in defence, and record pipeline further demonstrate the structural drivers of demand for our services, as governments face ever more complex challenges, and look to partners such as Serco to support them.
‘We are confident that our robust financial position, innovative solutions and strengthened leadership team, coupled with continued operational discipline, and growing capabilities across the group, culminate in a positive outlook for 2026.’
Serco hired Mark Reid as chief financial officer from March 6, succeeding outgoing CFO Nigel Crossley, who will step down from the board on March 5 after 11 years with the company.
Incoming CFO Reid is the current chief financial officer of Proximus NV, a Brussels-based telecommunications provider with a revenue of €6.4 billion in 2024.
Serco shares were up 5.6% to 266.20 pence each on Wednesday morning in London.
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