Keller's Data-Center Bet Pays Off in Record H1 2026

The ground-engineering specialist pivots to the AI infrastructure boom, securing a record order book and its fourth straight year of earnings growth.

KLR.L · Earnings Call · 2026-08-04

A Pivot to the Megatrend

The first half of 2026 marks a clear inflection for Keller Group (KLR.L). The company, traditionally known for its residential and infrastructure foundations work, has successfully repositioned itself around the data center boom. According to CEO James Wroath, data centers are now the largest subsector for the group, representing 9% of group revenue versus just 3% in 2025. Excluding the Suncoast business, they account for more than 15% of U.S. revenue year-to-date. This is not a modest increment—it is a strategic shift. The company has done more data center projects in H1 2026 than in all of 2025, and the funnel suggests more to come.

Data centers are pretty much all over the U.S. There doesn't seem to be a particular trend. And there doesn't seem to be a particular trend in terms of rural or urban either. They pop up everywhere.
James Peter Wroath, Chief Executive Officer · 2026-08-04

The sheer scale of the opportunity is reflected in Keller’s record order book, which grew 20% in North America, driven in part by the I-40 highway reconstruction project—the largest in company history. The order book now stands at £1.9 billion, with the I-40 project alone contributing £380 million. “We are at pains to say the I-40 project … will chew through a good piece of that £380 million of that signed up contract in '26, there's an equal spread into '27 and '28.” — David Burke, CFO or Finance Executive · 2026-08-04 This indicates that the company is not just riding a wave—it is building a longer-duration revenue base than its typical 6-9 month project cycle.

Financial Strength Across the Portfolio

The results are unequivocally strong. Revenue rose 11% on a constant-currency basis to £984.4 million in North America alone, and group operating profit increased 17.1%. Underlying EPS rose 22%, helped by the share buyback. Perhaps more importantly, margins expanded to 7.3%—above the company’s stated target of “sustaining margins above 7%.” The driver is a rare combination of volume and discipline: “we are a short order business. So we get the opportunity to reprice if things do increase.” — James Peter Wroath, Chief Executive Officer · 2026-08-04 In other words, Keller’s ability to pass on cost inflation—fuel, steel, cement—has kept margins resilient even as input prices fluctuate. The resilience shows across all three divisions. In the U.S., the U.S. business delivered record profits despite a softer South Florida residential market and a temporary pause in Moretrench’s key client. In Europe, Middle East profit grew 28% even though revenue fell 5%, helped by the Middle East unit performing “above expectations” despite the Middle East conflict. In APAC, Austral continues to thrive on the back of the mining sector. “Keller's geographic portfolio aligned to our market-leading portfolio of products and techniques … is proving again to be a winning combination.” — James Peter Wroath, Chief Executive Officer · 2026-08-04

Confluence with Global Trends and the Road Ahead

The data-center theme is not unique to Keller—it is a global megatrend visible across other reporting companies. In the same week, many firms highlighted data-center-driven demand, from electrical equipment makers to semiconductor companies. This confluence reinforces that Keller’s pivot is timely and well-positioned. However, Keller’s edge is its ability to move quickly into these high-demand subsectors, a capability James Wroath attributes to the “One Keller” initiative that has broken down silos and enabled large-scale project execution. The I-40 project, a multi-year highway reconstruction, exemplifies this: “pre One Keller, Keller probably couldn't have done the I-40 job. It probably would have been too big.” — James Peter Wroath, Chief Executive Officer · 2026-08-04 Looking ahead, the company remains cautious but confident. It reiterated its full-year guidance and expects robust H2 performance, with cash generation historically weighted to the back half. The ERP rollout will begin in 2027, and the company is actively exploring bolt-on M&A to accelerate growth in select geographies. “I still believe that there are opportunities in certain geographies to accelerate our organic growth through using some bolt-on inorganic acquisitions.” — James Peter Wroath, Chief Executive Officer · 2026-08-04 Keller’s transformation from a cyclical foundation specialist to a player in the infrastructure-driven, data-center-fueled growth story is a meaningful shift. With a record order book, margins above 7%, and a clear strategy to be articulated at the Capital Markets Day on October 14, the company is positioned for sustained outperformance. The market has rewarded the shares, and the fundamentals—despite the lack of a dedicated metrics block—point to continued momentum.