Margin squeezed at Multiplex despite jump in turnover

Profit at Multiplex halved in 2025 due to a gap between large projects completing and new ones ramping up.

In annual results for the year to 31 December 2025, Multiplex Construction Europe posted revenue of £973m, up a quarter from £780m in 2024, while pre-tax profit fell from £19.5m to £9.8m.

This pushed pre-tax margin down from 2.5 per cent to 1 per cent.

“The difference in profitability is a result of significant newly secured projects being in their infancy in 2025 while two large projects completed in 2024,” the firm said.

Multiplex said its order book remained at £3.4bn at the end of December, unchanged year on year.

That total included five mixed-use projects worth £1.6bn, seven commercial schemes worth £1.5bn and two higher education jobs worth £300m.

The contractor said it secured two main contracts in 2025 with a combined value of more than £381m.

These were 75 London Wall, a retrofit and extension scheme in the City of London, and Minerva House, a redevelopment and extension project near Southwark Cathedral.

Multiplex also said it secured two preconstruction services agreements (PCSAs) on commercial jobs and aimed to convert four PCSAs into main contracts during 2026. It completed four projects with a combined construction value of £699m in the year.

In its outlook statement, the contractor said its secured and preferred workbook gave it confidence over turnover and cashflow in 2026 and beyond.

Directors said the business remained selective on risk, with a focus on client and subcontractor due diligence, liquidity and tender discipline.

It ended the year with £52.8m of cash and cash equivalents, up from £34.6m last year, and continues to operate with no external debt.

The firm grew its headcount from 544 to 701, with staff costs rising from £82.0m to £96.1m.