Shares in Mitie Group plc have surged more than 11% today after the facilities management and professional services firm reported strong first-half trading and confirmed plans to resume a £100 million share buyback.
The FTSE 250 company said it expects higher full-year operating profit after a strong start to FY26, citing growth across its Technology Services and Decarbonisation divisions.
It posted a 10% rise in revenue to around £2.7 billion for the six months to 30th September 2025, up from £2.4bn a year earlier.
The growth included 6.1% organic gains, driven by new contract wins, expanded project scopes, pricing improvements and higher activity across defence, healthcare, local government and education.
Recent acquisitions, including the first contribution from Marlowe – which it acquired in August – added another 3.9% to revenue growth.
On the back of this performance, Mitie now expects operating profit before exceptional items to reach at least £260m for the full year to March 2026.
Investors also welcomed the disclosure of new performance targets under the London firm’s long-term incentive plan (LTIP), which link executive rewards to metrics including digital transformation and return on capital.
Mitie said the business continues to benefit from increased demand for data-driven building management, automation and smart energy systems, describing technology as “a core enabler” of its operational strategy.
Through its Connected Workspace platform, the company is deploying sensors, analytics and AI to monitor building performance, predict maintenance requirements and optimise energy use across large estates.
The company added that it is investing further in technology-led contracts and digital innovation to “transform facilities management into an insight-led service”.
Its AI-based tools and IoT solutions already aim to help customers reduce costs and carbon emissions by giving real-time visibility over energy use and operational efficiency.
“Mitie’s strong momentum has continued in the first half of the year, reflective of the progress we are making to deliver our strategic plan and financial targets,” said Phil Bentley, CEO of Mitie Group.
“We are well on the way to building a larger, more profitable and cash generative business with greater capacity to invest for growth and deliver increasing returns for shareholders.
“The acquisition of Marlowe in early August marked a major milestone in our strategic plan, consolidating Mitie’s technology and project-led ‘Facilities Transformation’ leadership and extending it into business-critical ‘Facilities Compliance’.
“The integration programme is progressing well, and we continue to expect to achieve at least £30m of cost synergies by FY28 alongside accelerated revenue growth through the cross-sell of regulatory driven services to Mitie’s clients.
“Our first half performance, combined with our continued growth momentum and progress with the Marlowe integration, provides the confidence to resume share buybacks with the launch of a new £100m programme, to be executed over the next 12 months.”
Despite the company’s share price closing at 139p yesterday, it now sits at 154.8p – closing in on a 10-year-peak.