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U.K. (FTSE) Construction Industry Analysis

UpdatedFeb 27, 2026
DataAggregated Company Financials
Companies14
  • 7D-2.2%
  • 3M9.6%
  • 1Y52.5%
  • YTD10.0%

Over the last 7 days, the Construction industry has dropped 2.4%, driven by pullbacks in Morgan Sindall Group and Balfour Beatty of 4.8% and 3.0%, respectively. This takes the industry's 12 month performance to a gain of 49%. As for the next few years, earnings are expected to grow by 8.6% per annum.

Industry Valuation and Performance

Has the U.K. Construction Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 27 Feb 2026UK£10.6bUK£25.9bUK£661.1m15.3x16x0.4x
Sun, 25 Jan 2026UK£9.9bUK£25.6bUK£638.5m14.4x15.5x0.4x
Tue, 23 Dec 2025UK£9.8bUK£25.6bUK£638.5m14x15.3x0.4x
Thu, 20 Nov 2025UK£9.1bUK£25.6bUK£638.4m14.5x14.2x0.4x
Sat, 18 Oct 2025UK£9.4bUK£25.6bUK£638.4m15.3x14.7x0.4x
Mon, 15 Sep 2025UK£8.5bUK£25.6bUK£642.7m13.7x13.2x0.3x
Wed, 13 Aug 2025UK£8.7bUK£25.0bUK£637.0m14.5x13.7x0.3x
Fri, 11 Jul 2025UK£8.4bUK£25.0bUK£637.8m14.4x13.1x0.3x
Sun, 08 Jun 2025UK£7.8bUK£25.0bUK£639.0m13.6x12.1x0.3x
Tue, 06 May 2025UK£7.3bUK£24.9bUK£636.3m12.8x11.5x0.3x
Thu, 03 Apr 2025UK£6.8bUK£24.9bUK£638.4m11.6x10.7x0.3x
Sat, 01 Mar 2025UK£7.1bUK£24.7bUK£666.6m11.3x10.7x0.3x
Mon, 27 Jan 2025UK£7.2bUK£24.5bUK£659.2m11.6x10.9x0.3x
Wed, 25 Dec 2024UK£7.7bUK£24.5bUK£651.0m12.1x11.8x0.3x
Fri, 22 Nov 2024UK£7.7bUK£24.5bUK£668.2m11.6x11.5x0.3x
Sun, 20 Oct 2024UK£7.7bUK£24.4bUK£666.6m11.4x11.6x0.3x
Tue, 17 Sep 2024UK£7.3bUK£24.2bUK£646.5m12.7x11.2x0.3x
Thu, 15 Aug 2024UK£7.2bUK£24.0bUK£594.3m15.8x12.1x0.3x
Sat, 13 Jul 2024UK£6.9bUK£23.7bUK£551.0m15.6x12.6x0.3x
Mon, 10 Jun 2024UK£6.5bUK£24.2bUK£562.9m12.7x11.5x0.3x
Wed, 08 May 2024UK£6.3bUK£24.1bUK£562.8m11.8x11.3x0.3x
Fri, 05 Apr 2024UK£6.0bUK£24.1bUK£549.9m10.1x10.9x0.2x
Sun, 03 Mar 2024UK£5.7bUK£23.6bUK£653.8m9.9x8.7x0.2x
Tue, 30 Jan 2024UK£5.6bUK£23.3bUK£600.3m11.1x9.4x0.2x
Thu, 28 Dec 2023UK£5.5bUK£23.3bUK£601.5m9.8x9.2x0.2x
Sat, 25 Nov 2023UK£5.3bUK£23.3bUK£594.1m9.6x8.9x0.2x
Mon, 23 Oct 2023UK£4.8bUK£23.3bUK£595.5m9x8.1x0.2x
Wed, 20 Sep 2023UK£5.2bUK£23.2bUK£600.1m9.6x8.7x0.2x
Fri, 18 Aug 2023UK£5.0bUK£23.0bUK£583.7m10x8.6x0.2x
Sun, 16 Jul 2023UK£5.1bUK£22.4bUK£604.9m12x8.5x0.2x
Tue, 13 Jun 2023UK£5.2bUK£22.4bUK£597.4m12x8.6x0.2x
Thu, 11 May 2023UK£5.3bUK£22.3bUK£501.9m13.5x10.5x0.2x
Sat, 08 Apr 2023UK£5.0bUK£22.3bUK£502.0m12.7x9.9x0.2x
Mon, 06 Mar 2023UK£5.2bUK£21.1bUK£370.7m13.7x14.1x0.2x
Price to Earnings Ratio

14.1x


Total Market Cap: UK£5.2bTotal Earnings: UK£370.7mTotal Revenue: UK£21.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Construction Industry Price to Earnings3Y Average 11.4x202420252026
Current Industry PE
  • Investors are optimistic on the British Construction industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 16.6x which is higher than its 3-year average PE of 11.4x.
  • The industry is trading close to its 3-year average PS ratio of 0.29x.
Past Earnings Growth
  • The earnings for companies in the Construction industry have grown 20% per year over the last three years.
  • Revenues for these companies have grown 6.6% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.K. Industrials industry?

GB Market1.92%
Industrials2.10%
Construction-2.18%
Construction and Engineering-2.18%
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
KLR Keller GroupUK£20.251.4%
+UK£18.6m		54.1%PE10x
COST Costain GroupUK£1.920.8%
+UK£4.3m		75.3%PE16.4x

Latest News

MGNS
UK£50.10
Morgan Sindall Group
7D
-6.9%
1Y
49.1%
VANL
UK£0.37
Van Elle Holdings
7D
-1.3%
1Y
-5.1%
GFRD
UK£5.46
Galliford Try Holdings
7D
-3.9%
1Y
50.0%

GFRD: Framework Win And Strong Revenue Guidance Will Support Rerating

Analysts have lifted their price target on Galliford Try Holdings to £6.21, citing a slightly higher assumed discount rate and P/E multiple as key drivers of the updated valuation framework. What's in the News Galliford Try's Building business has been appointed to the new €15.4b Department for Education Construction Framework 25, covering high value projects above €12m across England and low value projects under €12m in London, the South East and South West.
BBY
UK£7.68
Balfour Beatty
7D
-0.1%
1Y
64.7%
COST
UK£1.92
Costain Group
7D
0.8%
1Y
75.3%

COST: Higher P/E Assumptions Will Likely Expose Contract Execution Risk

Analysts have nudged their price target on Costain Group up by £0.20, reflecting updated views on the discount rate, revenue growth, profit margin and future P/E assumptions that are broadly in line with Berenberg's recent target move. Analyst Commentary Bearish analysts are treating the higher price target as a cautious reset rather than a strong endorsement, focusing on how updated assumptions about discount rates, revenue growth and margins could still leave limited room for error.
KIE
UK£2.40
Kier Group
7D
-4.2%
1Y
60.0%

KIE: Share Buyback And CFO Transition Will Reinforce Overvaluation Risk

Analysts have nudged their price target on Kier Group slightly higher to £2.20, reflecting small adjustments to revenue growth, profit margin assumptions, and a marginally lower future P/E multiple in their models. What's in the News Kier Group completed a £20 million share buyback program announced on January 21, 2025, repurchasing a total of 10,978,468 shares, representing 2.47% of the company.
SFR
UK£0.29
Severfield
7D
-5.5%
1Y
-39.3%
RNWH
UK£9.12
Renew Holdings
7D
-0.8%
1Y
36.1%
SMJ
UK£1.30
J. Smart (Contractors)
7D
-1.9%
1Y
4.0%
KLR
UK£20.25
Keller Group
7D
1.4%
1Y
54.1%

Little Excitement Around Keller Group plc's (LON:KLR) Earnings

Jan 28
Little Excitement Around Keller Group plc's (LON:KLR) Earnings