Capita (LON:CPI) Posts Quarterly Earnings Results

Capita (LON:CPI – Get Free Report) announced its earnings results on Tuesday. The company reported GBX 13.38 EPS for the quarter, Digital Look Earnings reports. Capita had a negative net margin of 7.45% and a negative return on equity of 142.88%.

Here are the key takeaways from Capita’s conference call:

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• CSPS remediation materially weakened results: First-half operating profit fell 32% to £32 million, with the Civil Service Pension Scheme contract contributing £14 million of costs and collateral pressure on consulting revenue. Management said resolving the backlog remains its top operational priority, with improvement targets set for September and October.
• Cash flow and leverage remain under pressure: Free cash flow was positive at just £3.5 million, while pre-IFRS 16 net debt rose to £200 million and leverage increased to 1.6x EBITDA. The company expects a £35 million–£50 million free-cash-flow outflow before business exits for the full year.
• Public-sector and pensions growth supported bookings: Public Service revenue rose 2.4% and Pension Solutions revenue increased 24.7%, while the order book grew to £4 billion before the additional £425 million Transport for London extension. First-half contract wins included Synergy, Army Collective Training System, and expanded Primary Care Support England work, although much of the revenue will arrive beyond 2026.
• Capita is simplifying and investing in AI-led services: The private contact-center divestiture has completed, and management expects further cost savings, including £40 million planned for 2026–27. Executives also highlighted nearly 500 AI agents deployed, expanded hyperscaler partnerships, and a new model for operating and governing agentic AI within public-sector and regulated-industry processes.

Capita Stock Down 5.2%

Shares of LON:CPI opened at GBX 256 on Tuesday. Capita has a 1 year low of GBX 215 and a 1 year high of GBX 416. The company has a market capitalization of £306.64 million, a PE ratio of -1.78, a price-to-earnings-growth ratio of 0.18 and a beta of 0.87. The business has a fifty day moving average price of GBX 304.19 and a two-hundred day moving average price of GBX 316.62. The company has a debt-to-equity ratio of 1,526.79, a current ratio of 0.54 and a quick ratio of 0.53.

Insiders Place Their Bets

In other news, insider Georgina Harvey sold 400 shares of Capita stock in a transaction on Monday, June 15th. The stock was sold at an average price of GBX 340, for a total transaction of £1,360. Also, insider Adolfo Hernandez purchased 2,763 shares of the business’s stock in a transaction that occurred on Friday, May 29th. The stock was bought at an average cost of GBX 405 per share, for a total transaction of £11,190.15. Over the last 90 days, insiders have purchased 27,410 shares of company stock valued at $10,897,189. 5.34% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on CPI shares. Shore Capital Group restated a “buy” rating on shares of Capita in a report on Thursday, April 23rd. Canaccord Genuity Group decreased their price objective on shares of Capita from GBX 900 to GBX 750 and set a “buy” rating for the company in a research note on Friday, July 10th. Finally, Peel Hunt reissued a “buy” rating and set a GBX 311 target price on shares of Capita in a research report on Tuesday. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of GBX 432.20.

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About Capita

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Capita is a modern outsourcer, helping clients across the public and private sectors run complex business processes more efficiently, creating better consumer experiences. Operating across 8 countries, Capita’s colleagues support primarily UK and European clients with people-based services underpinned by market-leading technology. We play an integral role in society – our work matters to the lives of the millions of people who rely on us every day.

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