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Keller Group surges after hiking outlook thanks to strong US infrastructure market

Published 15/05/2024, 09:51
Keller Group surges after hiking outlook thanks to strong US infrastructure market
KLR
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FTMC
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Proactive Investors - Keller Group PLC (LON:KLR) shares thundered 14% higher after the geotechnical contractor said it expects a strong performance this year.

The FTSE 250-listed group said the strong momentum it reported at its results in March has continued, well ahead of the prior year.

Combined with a "strong" order book and recent contract wins, this means management expects this year to be "materially ahead" of original expectations.

North American trading continued to be "strong", driven by ongoing infrastructure spend, with its Suncoast engineering arm also performing well despite expected softening of market conditions in the residential building market.

In Europe and the Middle East, weak demand persisted in residential and commercial sectors across Europe, whilst the infrastructure sector remained more resilient. Previous challenges in the Nordic region are dissipating.

In Asia, continued market softness persisted, with low levels of activity, whilst Keller India performed well.

A strong cash performance was reported, resulting in debt leverage expected to be towards the bottom end of the expectations.

Read more on Proactive Investors UK

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