Shares in Morgan Sindall Group PLC soared on Thursday as it raised its profit outlook for 2026 for the second time in three months.
The London-based construction and regeneration company traded 9.1% higher at 4,888.00 pence each in London on Thursday morning, the biggest riser on the FTSE 250, which was up 0.6%.
In an unscheduled trading update, Morgan Sindall said it expects 2026 pretax profit to be ‘significantly ahead of previous expectations’ following ‘strong trading activity and increased visibility for the remainder of the year from its Construction and Fit Out divisions.’
In Fit Out, confidence levels have ‘continued to increase’, and Morgan Sindall expects profit to be ‘significantly’ ahead of previous expectations, and further exceed the top-end of its medium-term target of £80 million to £100 million.
Construction’s operating margin for 2026 is now expected to be at top end of its medium-term target range of 3.0% to 3.5%, with revenue now expected to be towards £1.4 billion.
Infrastructure’s operating margin is now expected to be at top end of its medium-term target range of 3.75% to 4.25%, while revenue remains unchanged from previous guidance.
Partnership Housing profit is now expected to show modest growth in comparison to the prior year’s £42 million, with Mixed Use Partnerships profit expected to be in line with previous guidance.
The average daily net cash for the full year is expected to be in excess of £400 million, in line with previous expectations.
In February, Morgan Sindall said stronger than expected trading at Fit Out meant 2026 profit would exceed expectations.
On Thursday, Peel Hunt said it expected to raise 2026 pretax profit forecasts by 8% to 9%.
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