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UK technology-led Facilities Management, Transformation and Compliance company, Mitie, has released its trading update for the year ended 31 March 2026 (FY26), which shows continued good momentum in the fourth quarter and double digit revenue and operating growth in FY26.
Mitie has reported a record revenue up c.11% to c.£5,650m (FY25: £5,083m), including c.6% organic growth. Q4 revenue grew c.13%, reflecting continued good momentum for the business.
Operating profit was up c.12% to at least £260m (FY25: £234m), while operating margin was resilient at c.4.7% (FY25: 4.6%), despite material headwinds including employers’ costs, lost contracts and other one-off costs; H2 margin c.5.1% (H2 FY25: 5.0%).
During Q4 Mitie secured several notable contract awards, resulting in c.£6bn Total Contract Value (TCV) of wins/renewals/extensions in FY26 (FY25: £7.5bn). Significant contract awards include Asda, Aviva, Cooperative Group, Diego Garcia, GSK, Home Office, JLL, Scottish Prison Service and Transport for London.
Mitie states it is entering FY27 with a strong order book and a c.£31bn pipeline, up c.29% (end FY25: £24bn) of bidding opportunities, with around 70% to be awarded in the next 18 months.
The group also reports a strong free cash flow generation of c.£150m, which it says is well ahead of guidance of >£120m in FY26.
In FY26, Mitie completed its acquisition of Marlowe for c.£350m, comprising 290p in cash (£228m) and 1.1 Mitie shares (86.6m new Mitie shares issued) per Marlowe share. As part of this acquisition, the Group incurred transaction costs of £8m. Mitie also completed four infill acquisitions for c.£15m, adding key capabilities in refrigeration Engineering Maintenance in the UK; Security in Spain; and Fire & Security (via two businesses) to support data centre projects in the Nordics for clients including Microsoft and Google.
Commenting on the results and the outlook, Phil Bentley, CEO, said: “In completing the second year of our ambitious FY25-FY27 Strategic Plan, we have continued to make good progress. We have delivered record revenue; built a strong order book and pipeline; improved our operating margin despite material cost headwinds; and completed the acquisition of Marlowe, extending our leadership into Facilities Compliance.
“Our financial performance demonstrates that we are building a larger, more profitable and more cash generative business with greater capacity to invest for growth and deliver attractive returns to shareholders.
“As we enter the final year of our Strategic Plan, we are increasing our investments in AI Agentic solutions to drive efficiencies and deliver higher value insights to clients, and bringing our industry leading capabilities together in a unified package of Facilities Management, Facilities Transformation and Facilities Compliance solutions. Our strong order book, recent contract wins and bidding pipeline underpin the growing momentum in the business, and we remain confident of delivering our FY27 targets.”
FMJ and Watco Webinar: Meeting compliance in a new culture of accountability
From January 2026, the Building Safety Regulator (BSR) formally separated from the Health and Safety Executive (HSE). Created under the Building Safety Act 2022 in response to the Grenfell Tower tragedy, the BSR is designed to raise safety standards across the built environment and introduce a stronger culture of accountability, transparency, and proactive risk management.
This shift places facilities managers in a more strategic safety assurance role – far beyond routine maintenance.
FMJ and Watco are hosting a webinar on 22 April at 11:00am to explore what this new regulatory landscape means for FMs. To register for the webinar click here.
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