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U.K. (FTSE) Construction Industry Analysis

UpdatedMay 02, 2026
DataAggregated Company Financials
Companies14
  • 7D-0.4%
  • 3M5.7%
  • 1Y46.7%
  • YTD9.6%

Over the last 7 days, the Construction industry has dropped 1.7%, driven by a pullback from Morgan Sindall Group of 3.5%. This takes the industry's 12 month performance to a gain of 49%. Earnings are forecast to grow by 7.8% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 02 May 2026UK£10.6bUK£26.6bUK£753.8m14.8x14x0.4x
Mon, 30 Mar 2026UK£9.6bUK£26.6bUK£758.5m13.1x12.7x0.4x
Wed, 25 Feb 2026UK£10.7bUK£25.6bUK£638.3m16.1x16.8x0.4x
Fri, 23 Jan 2026UK£10.0bUK£25.6bUK£638.5m14.6x15.6x0.4x
Sun, 21 Dec 2025UK£9.8bUK£25.6bUK£638.5m14x15.3x0.4x
Tue, 18 Nov 2025UK£9.2bUK£25.6bUK£638.4m14.7x14.3x0.4x
Thu, 16 Oct 2025UK£9.5bUK£25.6bUK£638.4m15.6x15x0.4x
Sat, 13 Sep 2025UK£8.5bUK£25.6bUK£642.7m13.7x13.2x0.3x
Mon, 11 Aug 2025UK£8.6bUK£25.0bUK£637.0m14.5x13.5x0.3x
Wed, 09 Jul 2025UK£8.3bUK£25.0bUK£637.8m14.3x13x0.3x
Fri, 06 Jun 2025UK£7.8bUK£25.0bUK£639.1m13.5x12.2x0.3x
Sun, 04 May 2025UK£7.3bUK£24.9bUK£636.3m12.8x11.5x0.3x
Tue, 01 Apr 2025UK£6.7bUK£24.9bUK£638.4m11.3x10.5x0.3x
Thu, 27 Feb 2025UK£7.3bUK£24.5bUK£658.9m11.8x11x0.3x
Sat, 25 Jan 2025UK£7.2bUK£24.5bUK£659.2m11.6x10.9x0.3x
Mon, 23 Dec 2024UK£7.6bUK£24.5bUK£651.0m11.8x11.7x0.3x
Wed, 20 Nov 2024UK£7.8bUK£24.4bUK£666.6m12x11.6x0.3x
Fri, 18 Oct 2024UK£7.8bUK£24.4bUK£666.6m11.4x11.7x0.3x
Sun, 15 Sep 2024UK£7.2bUK£24.2bUK£646.5m12.4x11.1x0.3x
Tue, 13 Aug 2024UK£7.2bUK£24.0bUK£594.3m15.7x12.1x0.3x
Thu, 11 Jul 2024UK£6.7bUK£23.7bUK£551.0m15.2x12.2x0.3x
Sat, 08 Jun 2024UK£6.5bUK£24.2bUK£562.9m12.7x11.5x0.3x
Mon, 06 May 2024UK£6.2bUK£24.1bUK£562.8m11.9x11.1x0.3x
Wed, 03 Apr 2024UK£6.0bUK£24.1bUK£549.9m10.1x10.9x0.2x
Fri, 01 Mar 2024UK£5.6bUK£23.6bUK£653.7m9.8x8.6x0.2x
Sun, 28 Jan 2024UK£5.7bUK£23.3bUK£600.3m11.1x9.5x0.2x
Tue, 26 Dec 2023UK£5.5bUK£23.3bUK£601.5m9.7x9.2x0.2x
Thu, 23 Nov 2023UK£5.2bUK£23.3bUK£594.1m9.6x8.8x0.2x
Sat, 21 Oct 2023UK£4.8bUK£23.3bUK£595.5m9x8.1x0.2x
Mon, 18 Sep 2023UK£5.2bUK£23.2bUK£597.6m9.6x8.7x0.2x
Wed, 16 Aug 2023UK£5.2bUK£22.8bUK£619.6m9.9x8.4x0.2x
Fri, 14 Jul 2023UK£5.1bUK£22.4bUK£604.9m12.1x8.5x0.2x
Sun, 11 Jun 2023UK£5.2bUK£22.4bUK£597.0m11.9x8.7x0.2x
Tue, 09 May 2023UK£5.3bUK£22.3bUK£501.9m13.6x10.5x0.2x
Price to Earnings Ratio

10.5x


Total Market Cap: UK£5.3bTotal Earnings: UK£501.9mTotal Revenue: UK£22.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Construction Industry Price to Earnings3Y Average 11.5x202420252026
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 14.0x which is higher than its 3-year average PE of 11.5x.
  • 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 15% per year over the last three years.
  • Revenues for these companies have grown 6.1% 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-0.18%
Industrials0.90%
Construction-0.41%
Construction and Engineering-0.41%
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£8.130.9%
+UK£33.8m		72.5%PE14.9x
KLR Keller GroupUK£22.341.5%
+UK£22.1m		54.3%PE10.8x
COST Costain GroupUK£1.873.5%
+UK£16.6m		60.5%PE13.4x
DIAL Diales GroupUK£0.3110.7%
+UK£1.6m		51.2%PE18x
SFR SeverfieldUK£0.261.7%
+UK£1.3m		-0.6%PS0.2x

Latest News

KLR
UK£22.34
Keller Group
7D
1.5%
1Y
54.3%

KLR: Buybacks And Higher Dividends Will Support A Fairly Valued Profile

Analysts have nudged the fair value estimate for Keller Group slightly higher to £24.32 per share, supported by recent price target increases to £22.00 from Deutsche Bank and a £2.20 uplift at RBC Capital. They broadly view the shares as fairly valued at current levels.
NEXS
UK£1.13
Nexus Infrastructure
7D
-1.3%
1Y
-29.7%
SFR
UK£0.26
Severfield
7D
1.7%
1Y
-0.6%
COST
UK£1.87
Costain Group
7D
3.5%
1Y
60.5%
BILN
UK£4.05
Billington Holdings
7D
1.3%
1Y
17.4%
VANL
UK£0.50
Van Elle Holdings
7D
-0.4%
1Y
43.7%

VANL: Cash Offer And Steady Assumptions Will Guide Future Returns

Analysts have kept their fair value estimate for Van Elle Holdings steady at £0.47 per share, with only minor tweaks to inputs such as the discount rate and assumed future P/E. This leaves their overall price target view effectively unchanged.
GFRD
UK£5.20
Galliford Try Holdings
7D
-1.9%
1Y
29.2%

GFRD: Affordable Housing And Education Framework Wins Will Support Future Rerating

Analysts have left their £6.52 price target for Galliford Try Holdings unchanged, noting only minimal tweaks in the discount rate, revenue growth, profit margin and future P/E assumptions that do not materially alter their overall view on the shares. What's in the News Appointed to a new £750 million affordable homes framework by Sovereign Network Group, covering mid and high value bands across London and East, South and high value in the West, supporting Sovereign's target of more than 2,000 homes per year across southern England (Key Developments).
DIAL
UK£0.31
Diales Group
7D
10.7%
1Y
51.2%
MGNS
UK£46.50
Morgan Sindall Group
7D
-3.5%
1Y
31.7%

MGNS: Rising Dividend And Stronger Fit Out Prospects Will Support Upside

Analysts have adjusted their fair value price target for Morgan Sindall Group from £54.27 to £55.00, reflecting updated assumptions around revenue growth, profit margins, and a slightly lower future P/E. What's in the News Proposed final dividend set at 108.0 pence per share for FY 2024, compared with 90.0 pence per share for FY 2023, giving a total dividend of 158.0 pence per share versus 131.5 pence per share, with dividend cover reported at 2.4x (Key Developments) Board commentary links the dividend proposal to the Group's performance in the year, its balance sheet position, and its view on long term prospects for the business (Key Developments) Earnings guidance for 2025 reiterated, with all divisions reported as performing well and the Group described as on track to meet current expectations (Key Developments) Fit Out division profits for 2026 are described as now expected to be significantly ahead of prior expectations and above the top end of the medium term target range of £80m to £100m.
BBY
UK£8.13
Balfour Beatty
7D
0.9%
1Y
72.5%

BBY: Rich P E And Execution Risks Will Likely Cap Future Returns

Analysts have nudged their average price targets for Balfour Beatty higher into the £7.70 to £8.70 range. This reflects updated views on its fair value based on recent research from several major banks.
KIE
UK£2.03
Kier Group
7D
-2.2%
1Y
34.3%

KIE: Neutral Outlook Will Balance Fusion Project Prospects And Execution Risks

Analysts have made only marginal adjustments to their Kier Group price target to £2.15, reflecting slightly different assumptions on the discount rate, revenue growth, profit margin and future P/E following the recent initiation of research coverage with a neutral view. Analyst Commentary Analysts starting coverage with a neutral stance are signaling that, at around the £2.15 price target, Kier Group is viewed as fairly balanced between potential upside and downside.
RNWH
UK£9.01
Renew Holdings
7D
-1.5%
1Y
15.7%