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U.K. (FTSE) Construction and Engineering Industry Analysis

UpdatedDec 24, 2025
DataAggregated Company Financials
Companies14
  • 7D1.0%
  • 3M11.4%
  • 1Y30.3%
  • YTDn/a

In the last week, Construction and Engineering has been flat. As for the the longer term, the industry is up 32% over the past 12 months. Looking forward, earnings are forecast to grow by 8.1% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 24 Dec 2025UK£9.8bUK£25.6bUK£638.5m14x15.3x0.4x
Fri, 21 Nov 2025UK£9.1bUK£25.6bUK£638.4m14.6x14.2x0.4x
Sun, 19 Oct 2025UK£9.4bUK£25.6bUK£638.4m15.3x14.7x0.4x
Tue, 16 Sep 2025UK£8.5bUK£25.6bUK£642.7m13.7x13.3x0.3x
Thu, 14 Aug 2025UK£8.6bUK£25.0bUK£637.0m14.2x13.5x0.3x
Sat, 12 Jul 2025UK£8.4bUK£25.0bUK£637.8m14.4x13.1x0.3x
Mon, 09 Jun 2025UK£7.8bUK£25.0bUK£639.0m13.6x12.1x0.3x
Wed, 07 May 2025UK£7.4bUK£24.9bUK£636.3m13x11.6x0.3x
Fri, 04 Apr 2025UK£6.7bUK£24.9bUK£638.4m11.2x10.5x0.3x
Sun, 02 Mar 2025UK£7.0bUK£24.7bUK£666.6m11.3x10.6x0.3x
Tue, 28 Jan 2025UK£7.2bUK£24.5bUK£659.2m11.5x10.9x0.3x
Thu, 26 Dec 2024UK£7.7bUK£24.5bUK£651.0m12.1x11.8x0.3x
Sat, 23 Nov 2024UK£7.8bUK£24.5bUK£668.1m11.7x11.6x0.3x
Mon, 21 Oct 2024UK£7.7bUK£24.4bUK£666.6m11.4x11.6x0.3x
Wed, 18 Sep 2024UK£7.3bUK£24.2bUK£645.0m11.9x11.3x0.3x
Fri, 16 Aug 2024UK£7.2bUK£24.0bUK£627.3m15.9x11.5x0.3x
Sun, 14 Jul 2024UK£6.9bUK£23.7bUK£551.0m15.6x12.6x0.3x
Tue, 11 Jun 2024UK£6.5bUK£24.2bUK£562.9m12.7x11.5x0.3x
Thu, 09 May 2024UK£6.4bUK£24.1bUK£562.8m11.9x11.3x0.3x
Sat, 06 Apr 2024UK£5.9bUK£24.1bUK£549.9m9.9x10.8x0.2x
Mon, 04 Mar 2024UK£5.7bUK£23.6bUK£653.8m9.9x8.7x0.2x
Wed, 31 Jan 2024UK£5.6bUK£23.3bUK£600.3m11.1x9.4x0.2x
Fri, 29 Dec 2023UK£5.5bUK£23.3bUK£601.5m9.9x9.2x0.2x
Sun, 26 Nov 2023UK£5.3bUK£23.3bUK£594.1m9.6x8.9x0.2x
Tue, 24 Oct 2023UK£4.9bUK£23.3bUK£595.6m9.3x8.3x0.2x
Thu, 21 Sep 2023UK£5.3bUK£23.3bUK£595.7m9.5x8.9x0.2x
Sat, 19 Aug 2023UK£5.0bUK£23.0bUK£583.6m10x8.5x0.2x
Mon, 17 Jul 2023UK£5.1bUK£22.4bUK£604.9m12x8.5x0.2x
Wed, 14 Jun 2023UK£5.1bUK£22.4bUK£597.5m12.1x8.6x0.2x
Fri, 12 May 2023UK£5.3bUK£22.3bUK£501.6m13.7x10.5x0.2x
Sun, 09 Apr 2023UK£5.0bUK£22.3bUK£502.0m12.7x9.9x0.2x
Tue, 07 Mar 2023UK£5.2bUK£21.1bUK£370.7m13.7x14x0.2x
Thu, 02 Feb 2023UK£5.3bUK£20.9bUK£412.9m14.6x12.7x0.3x
Sat, 31 Dec 2022UK£4.9bUK£20.9bUK£414.0m14.5x11.9x0.2x
Price to Earnings Ratio

11.9x


Total Market Cap: UK£4.9bTotal Earnings: UK£414.0mTotal Revenue: UK£20.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Construction and Engineering Industry Price to Earnings3Y Average 11.2x202320242025
Current Industry PE
  • Investors are optimistic on the British Construction and Engineering industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 15.3x which is higher than its 3-year average PE of 11.2x.
  • The industry is trading close to its 3-year average PS ratio of 0.28x.
Past Earnings Growth
  • The earnings for companies in the Construction and Engineering industry have grown 16% per year over the last three years.
  • Revenues for these companies have grown 6.9% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Comparison

How does U.K. Construction and Engineering compare with similar industries?

GB Market2.11%
Industrials1.72%
Construction0.99%
Construction and Engineering0.99%
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
MGNS Morgan Sindall GroupUK£47.001.5%
+UK£32.7m		20.4%PE14.5x
KIE Kier GroupUK£2.262.5%
+UK£24.1m		50.7%PE17.7x
KLR Keller GroupUK£16.702.1%
+UK£23.6m		12.8%PE8.3x
RNWH Renew HoldingsUK£8.942.2%
+UK£15.0m		-4.2%PE15.9x
GFRD Galliford Try HoldingsUK£5.251.7%
+UK£8.8m		33.9%PE15.3x

Latest News

BBY
UK£7.16
Balfour Beatty
7D
-0.3%
1Y
57.7%

BBY: UK Energy And US Buildings Will Drive Stronger Future Outlook

Narrative Update on Balfour Beatty: Analysts have raised their price target on the shares by approximately 20 percent, reflecting increased confidence in the company’s revenue growth trajectory and a higher justified future P E multiple, despite only marginal changes in profit margin assumptions and the discount rate. What's in the News Balfour Beatty issued earnings guidance for 2025, expecting revenue to be more than 5 percent above 2024 levels of £10.0 billion, supported by strong momentum in core markets.
SMJ
UK£1.33
J. Smart (Contractors)
7D
0%
1Y
6.0%
RNWH
UK£8.94
Renew Holdings
7D
2.2%
1Y
-4.2%

Renew Holdings (LON:RNWH) Is Increasing Its Dividend To £0.1333

Dec 20
Renew Holdings (LON:RNWH) Is Increasing Its Dividend To £0.1333
VANL
UK£0.36
Van Elle Holdings
7D
4.3%
1Y
-1.4%
GFRD
UK£5.25
Galliford Try Holdings
7D
1.7%
1Y
33.9%

GFRD: Index Additions And Buyback Will Support Future Share Rerating

Analysts have nudged their price target on Galliford Try Holdings modestly higher to approximately £6.00 per share, citing a slightly lower discount rate and stable long term growth and margin assumptions that support a broadly unchanged fair value outlook. Analyst Commentary Bullish analysts point to Galliford Try Holdings' consistent execution on its order book and disciplined bidding as supporting a valuation near the updated price target, with lower perceived risk around margin delivery than in prior cycles.
COST
UK£1.60
Costain Group
7D
0.4%
1Y
48.5%

COST: Long-Term Nuclear Framework Wins Will Support Stronger Future Outlook

Analysts have raised their price target on Costain Group from £2.15 to £2.50, citing upgraded long term revenue growth expectations that more than offset slightly higher discount rates and marginally softer margin assumptions. What's in the News Won a new five year framework extension with EDF worth approximately £75 million to provide project controls services at eight UK nuclear power stations through 2030, supporting safe operations, life extension, and future defueling and decommissioning (Client Announcements) Selected by Sellafield Ltd as Utilities Delivery Partner under its Infrastructure Delivery Partnership, a contract expected to be worth up to £1 billion over an initial nine year term with options to extend by up to six more years, focused on refurbishing and replacing critical utility distribution systems (Client Announcements) Valuation Changes Consensus Analyst Price Target has held steady at £2.15 per share, with higher growth expectations offsetting valuation headwinds.
KIE
UK£2.26
Kier Group
7D
2.5%
1Y
50.7%

KIE Will Balance Higher Earnings Quality With Leadership Change And Dividend Prospects

Analysts have nudged their price target on Kier Group up from £2.00 to £2.20 per share, reflecting a modestly higher fair value despite reduced revenue growth assumptions and a higher discount rate. This is underpinned by expectations of stronger long term earnings quality and a higher future price to earnings multiple.
MGNS
UK£47.00
Morgan Sindall Group
7D
1.5%
1Y
20.4%

MGNS: Slightly Lower Risk Will Support Stable Outlook And Fair Value

Analysts have nudged their price target for Morgan Sindall Group slightly higher to approximately £50.08, reflecting marginally lower perceived risk and a steady outlook for revenue growth, profit margins, and future valuation multiples. Valuation Changes Fair Value unchanged at approximately £50.08 per share, indicating no material reassessment of intrinsic value.
HERC
UK£0.51
Hercules
7D
1.0%
1Y
25.9%

The Trend Of High Returns At Hercules (LON:HERC) Has Us Very Interested

Dec 13
The Trend Of High Returns At Hercules (LON:HERC) Has Us Very Interested
SFR
UK£0.28
Severfield
7D
-0.4%
1Y
-45.8%
NEXS
UK£1.22
Nexus Infrastructure
7D
-1.6%
1Y
-0.8%
KLR
UK£16.70
Keller Group
7D
2.1%
1Y
12.8%

Investors Will Want Keller Group's (LON:KLR) Growth In ROCE To Persist

Oct 20
Investors Will Want Keller Group's (LON:KLR) Growth In ROCE To Persist