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U.K. (FTSE) Construction Industry Analysis

UpdatedJun 23, 2026
DataAggregated Company Financials
Companies13
  • 7D3.3%
  • 3M14.6%
  • 1Y39.7%
  • YTD17.2%

The Construction industry is up 3.3% in the last week, with Balfour Beatty up 4.9%. Meanwhile, Hercules actually underperformed within the industry, shrinking 16% in the last week. This means that the industry has gained 40% over the past year. Earnings are forecast to grow by 7.7% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 23 Jun 2026UK£11.1bUK£26.5bUK£749.9m15x14.9x0.4x
Thu, 21 May 2026UK£10.4bUK£26.6bUK£755.8m14.5x13.8x0.4x
Sat, 18 Apr 2026UK£10.9bUK£26.6bUK£758.5m14x14.4x0.4x
Mon, 16 Mar 2026UK£10.1bUK£26.6bUK£758.5m13.9x13.3x0.4x
Wed, 11 Feb 2026UK£10.4bUK£25.6bUK£638.3m15.5x16.2x0.4x
Fri, 09 Jan 2026UK£9.9bUK£25.6bUK£638.5m14.5x15.5x0.4x
Sun, 07 Dec 2025UK£9.7bUK£25.6bUK£637.8m15x15.2x0.4x
Tue, 04 Nov 2025UK£9.4bUK£25.6bUK£638.4m15.3x14.8x0.4x
Thu, 02 Oct 2025UK£9.1bUK£25.6bUK£640.6m15.1x14.2x0.4x
Sat, 30 Aug 2025UK£8.4bUK£25.6bUK£642.7m13.7x13x0.3x
Mon, 28 Jul 2025UK£8.4bUK£24.9bUK£619.7m14.4x13.6x0.3x
Wed, 25 Jun 2025UK£8.2bUK£25.0bUK£639.0m13.8x12.9x0.3x
Fri, 23 May 2025UK£7.8bUK£25.0bUK£639.1m13.6x12.3x0.3x
Sun, 20 Apr 2025UK£6.8bUK£24.9bUK£636.3m11.8x10.8x0.3x
Tue, 18 Mar 2025UK£6.7bUK£24.9bUK£638.4m10.5x10.4x0.3x
Thu, 13 Feb 2025UK£7.3bUK£24.5bUK£658.9m11.8x11.1x0.3x
Sat, 11 Jan 2025UK£7.2bUK£24.5bUK£650.9m10.9x11.1x0.3x
Mon, 09 Dec 2024UK£7.8bUK£24.6bUK£651.0m12.1x11.9x0.3x
Wed, 06 Nov 2024UK£7.8bUK£24.4bUK£666.6m11.6x11.7x0.3x
Fri, 04 Oct 2024UK£7.3bUK£24.4bUK£666.6m10.7x11x0.3x
Sun, 01 Sep 2024UK£7.4bUK£24.0bUK£635.7m15.9x11.6x0.3x
Tue, 30 Jul 2024UK£7.0bUK£23.7bUK£551.7m15.9x12.7x0.3x
Thu, 27 Jun 2024UK£6.4bUK£24.2bUK£557.5m14.1x11.5x0.3x
Sat, 25 May 2024UK£6.6bUK£24.2bUK£563.1m12.2x11.8x0.3x
Mon, 22 Apr 2024UK£5.9bUK£24.1bUK£552.8m10.3x10.7x0.2x
Wed, 20 Mar 2024UK£6.0bUK£24.1bUK£550.0m10x10.9x0.2x
Fri, 16 Feb 2024UK£5.4bUK£23.3bUK£600.2m10.8x9.1x0.2x
Sun, 14 Jan 2024UK£5.5bUK£23.3bUK£601.5m9.6x9.2x0.2x
Tue, 12 Dec 2023UK£5.3bUK£23.3bUK£598.8m9.1x8.9x0.2x
Thu, 09 Nov 2023UK£5.0bUK£23.3bUK£595.6m9.2x8.5x0.2x
Sat, 07 Oct 2023UK£5.0bUK£23.3bUK£595.6m9x8.4x0.2x
Mon, 04 Sep 2023UK£5.1bUK£23.0bUK£579.5m10x8.7x0.2x
Wed, 02 Aug 2023UK£5.3bUK£22.4bUK£606.1m11.4x8.7x0.2x
Fri, 30 Jun 2023UK£5.0bUK£22.4bUK£605.2m11.9x8.2x0.2x
Price to Earnings Ratio

8.2x


Total Market Cap: UK£5.0bTotal Earnings: UK£605.2mTotal Revenue: UK£22.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Construction Industry Price to Earnings3Y Average 11.8x202420252026
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 14.9x which is higher than its 3-year average PE of 11.8x.
  • The industry is trading close to its 3-year average PS ratio of 0.30x.
Past Earnings Growth
  • The earnings for companies in the Construction industry have grown 7.4% per year over the last three years.
  • Revenues for these companies have grown 5.8% 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 Market-0.40%
Industrials0.43%
Construction3.33%
Construction and Engineering3.33%
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
BBY Balfour BeattyUK£8.804.9%
+UK£195.3m		77.6%PE15.9x
MGNS Morgan Sindall GroupUK£47.563.1%
+UK£66.3m		8.7%PE12.7x
KIE Kier GroupUK£2.103.5%
+UK£31.6m		8.2%PE15.2x
KLR Keller GroupUK£26.741.4%
+UK£24.8m		80.4%PE12.9x
COST Costain GroupUK£2.104.0%
+UK£21.4m		47.5%PE15.1x

Latest News

GFRD
UK£5.22
Galliford Try Holdings
7D
2.6%
1Y
25.2%
Narrative Update • Jun 22

GFRD: Affordable Housing Framework Pipeline And Buyback Will Support Rerating

Analysts have maintained their fair value estimate for Galliford Try Holdings at £6.52, with slight adjustments to the discount rate and future P/E assumptions. These changes reflect updated views on execution risk and long term profitability drivers, similar to those cited in recent research on other construction and infrastructure focused stocks.
COST
UK£2.10
Costain Group
7D
4.0%
1Y
47.5%
Narrative Update • Jun 17

COST: Transport And Energy Contracts Will Support Stronger Long Term Earnings Profile

Costain Group's analyst price target has been kept broadly steady at £2.97, with analysts citing unchanged fair value, a similar forward P/E of about 19.6x, and only minor adjustments to discount rate, revenue growth and profit margin assumptions to reflect updated modelling rather than a shift in overall view. What’s in the News for Costain Group Costain Group has been selected by Transport for London as one of three contractors on the Infrastructure Improvement Framework.
DIAL
UK£0.31
Diales Group
7D
3.3%
1Y
44.2%
MGNS
UK£47.56
Morgan Sindall Group
7D
3.1%
1Y
8.7%
Narrative Update • Jun 13

MGNS: Higher Final Dividend Will Support Stronger Future Shareholder Returns

Analysts have maintained their fair value estimate for Morgan Sindall Group at approximately £55.07 per share, making only minor adjustments to assumptions such as a slightly lower discount rate and marginal changes to revenue growth, profit margin, and future P/E inputs, which together inform the updated price target view. What's in the News At the Annual General Meeting held on 7 May 2026, shareholders approved a final dividend of 108 pence per ordinary share for the year ended 31 December 2025 (source: Key Developments).
KLR
UK£26.74
Keller Group
7D
1.4%
1Y
80.4%
Narrative Update • Jun 10

KLR: Order Book Strength And Buyback Program Will Support Future Fair Value

Narrative Update: Keller Group Analysts have nudged their fair value estimate for Keller Group slightly higher, with the updated price target now at £25.28 compared with £25.13 previously. This reflects recent Street research in which Keller Group's price target was raised by £2.20 and supported by modest adjustments to the discount rate, long term revenue growth, profit margin and future P/E assumptions.
KIE
UK£2.10
Kier Group
7D
3.5%
1Y
8.2%
Narrative Update • Jun 07

KIE: Neutral Fusion Contract Delivery Will Shape Execution Risk And Future Returns

Analysts have maintained the fair value estimate for Kier Group at £2.15, making only minor adjustments to growth, margin and future P/E assumptions following new neutral coverage from major banks. Taken together, these changes suggest a more finely balanced risk-reward profile rather than a significant change in the price target.
BBY
UK£8.80
Balfour Beatty
7D
4.9%
1Y
77.6%
Narrative Update • Jun 06

BBY: Rising Dividend And 2026 Guidance Will Support Measured Future Upside

The analyst price target for Balfour Beatty has moved higher to reflect Street targets clustered in the £7.70 to £8.70 range, with analysts pointing to slightly adjusted discount rate, revenue growth and P/E assumptions in their updated models. Analyst Commentary Recent Street research around Balfour Beatty has tilted more positive, with several bullish analysts lifting their price targets into the upper end of the current £7.70 to £8.70 range and highlighting the stock's risk reward as more attractive following updated assumptions.
HERC
UK£0.24
Hercules
7D
-16.4%
1Y
-42.9%
RNWH
UK£8.62
Renew Holdings
7D
1.5%
1Y
6.6%
NEXS
UK£1.08
Nexus Infrastructure
7D
-1.4%
1Y
-34.8%