Serco Group (LON:SRP) Announces Quarterly Earnings Results

Posted by Brian Himes on Aug 6th, 2026

Serco Group (LON:SRP – Get Free Report) posted its quarterly earnings data on Thursday. The company reported GBX 9.69 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Serco Group had a return on equity of 16.69% and a net margin of 2.97%.

Here are the key takeaways from Serco Group’s conference call:

Strong first-half performance: Revenue rose 4% on a constant-currency basis to £2.5 billion, underlying operating profit increased 8% to £157 million, and margin reached a 10-year high of 6.2%. Free cash flow was £65 million, with management reiterating full-year revenue, profit, and cash-flow guidance.
Serco increased its 2026 share buyback to £150 million, including an additional £75 million for the second half, taking total expected shareholder returns for the year to just under £200 million. Leverage remained low at 0.7x EBITDA, preserving capacity for acquisitions and further returns.
Growth prospects remain supported by a record £12.8 billion group pipeline, retention above 95%, and strong defence momentum, including 10% organic growth across the defence business. North America’s pipeline exceeded £8 billion, while the U.K. and Europe benefited from a 30% increase in defence revenue and successful contract mobilizations.
Asia-Pacific revenue fell 14% following the exit from the Australian immigration contract, while Middle East revenue declined 25% amid regional conflict and contract transitions. U.K. and European immigration volumes also remain a headwind, although management said the impact is currently smaller than previously expected.
Procurement delays continue to affect the timing of U.S. federal awards, with £3.2 billion of bids awaiting decisions and midterm elections approaching in November. Management expects conditions to improve gradually but emphasized that its 2026 guidance does not depend on a recovery in the U.S. procurement cycle.

Serco Group Trading Up 5.4%

LON SRP traded up GBX 13.08 during trading hours on Thursday, reaching GBX 255.68. The company’s stock had a trading volume of 2,500,717 shares, compared to its average volume of 13,173,225. The firm has a fifty day simple moving average of GBX 239.73 and a 200-day simple moving average of GBX 275.30. The company has a debt-to-equity ratio of 104.09, a current ratio of 0.93 and a quick ratio of 0.98. Serco Group has a 52 week low of GBX 211.80 and a 52 week high of GBX 325.80. The stock has a market cap of £2.50 billion, a P/E ratio of 18.17, a P/E/G ratio of 3.06 and a beta of 0.50.

Wall Street Analyst Weigh In

Several brokerages have commented on SRP. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a GBX 255 target price on shares of Serco Group in a research report on Friday, June 26th. Jefferies Financial Group restated a “hold” rating and set a GBX 230 price objective on shares of Serco Group in a research report on Thursday, June 25th. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of GBX 264.50.

Read Our Latest Research Report on SRP