Mitie Group PLC reported fourth-quarter revenue of £1,525 million, exceeding analyst forecasts of £1,492 million by 2%, according to a Thursday trading update.
The facilities management group said revenue in the fourth quarter rose 13%, lifting full-year FY26 revenue to £5,650 million. That annual figure was broadly in line with consensus estimates of £5,653 million.
Mitie noted that the FY26 revenue performance comprised 6% organic growth and 11% reported growth. The reported increase includes a 5% contribution from mergers and acquisitions completed during the period.
Across FY26 the company secured new contract wins and renewals totaling £6 billion, a reduction from £7.5 billion recorded in FY25. Among the notable contract awards and renewals cited were bundled and integrated facilities management services for Aviva and Imperial College, security services for Asda, and a separate contract with Transport for London.
The company reported its bid pipeline expanded by 29% year-over-year to £31 billion, up from £30 billion at the end of December.
On cash generation, Mitie said free cash flow reached £150 million in FY26, an increase of 5% year-over-year and above the company’s internal target of more than £120 million.
Management provided an update on integration and acquisition activity. The integration of Marlowe is described as progressing well, with initial cost synergies of approximately £5 million realised in FY26. The group also completed four acquisitions for about £15 million in aggregate, including purchases that add fire and security capabilities intended to support data centre projects in the Nordic region.
Finally, Mitie reiterated its target of achieving at least £260 million in EBITA for FY26, a level consistent with consensus estimates of £262 million.
Summary
Mitie reported Q4 revenue of £1,525 million, 2% ahead of forecasts, and FY26 revenue of £5,650 million. Growth comprised 6% organic and 11% reported, with a 5% lift from M&A. New contract wins and renewals in FY26 totalled £6 billion. The company generated £150 million in free cash flow, and management reiterated an EBITA target of at least £260 million for FY26.
Key points
- Q4 revenue of £1,525 million beat analyst expectations of £1,492 million by 2%.
- FY26 revenue reached £5,650 million, reflecting 6% organic growth and 11% reported growth, with 5% attributable to M&A.
- Free cash flow was £150 million in FY26, up 5% year-over-year and above the company's target of more than £120 million.
Sectors impacted
- Facilities management and integrated services
- Security services and retail/transport clients such as Asda and Transport for London
- Data centre support services in the Nordic region
Risks and uncertainties
- Contract wins and renewals fell to £6 billion in FY26 from £7.5 billion in FY25, representing a potential headwind to future revenue momentum in facilities and integrated services.
- Reported revenue growth includes a 5% contribution from mergers and acquisitions, making continued M&A activity a factor in sustaining reported growth rates.
- While the bid pipeline expanded to £31 billion, that figure is a pipeline rather than guaranteed revenue, leaving some uncertainty over conversion into signed contracts.
Additional details
Mitie said the Marlowe integration is underway and initial cost synergies of around £5 million were achieved in FY26. The company completed four small acquisitions totalling approximately £15 million, including additions that bolster fire and security capabilities for Nordic data centre projects. Management reiterated its FY26 EBITA target of at least £260 million, in line with consensus of £262 million.