Galliford Try Shares Surge on Record Profit, Dividend Boost and New Buy‑Back

The construction and engineering conglomerate Galliford Try Holdings PLC rallied sharply on Friday, 17 September 2025, after it announced a dramatic rise in its annual profit and a fresh £10 million share‑buy‑back programme. The lift in earnings lifted the stock price to a new 52‑week high of £479.5, up from the prior close of £487.5, and pushed market‑capitalisation above £49 billion.

Profit Explosion and Dividend Upside

Galliford Try reported that its FY25 operating profit jumped 29 percent year‑on‑year, a growth that outpaced analyst expectations and propelled the share price higher. The company’s board has therefore announced an increase to its quarterly dividend, signalling confidence in the firm’s cash‑flow strength. The profit surge is largely attributable to robust construction demand and a favourable mix of residential and infrastructure projects across the United Kingdom.

£10 Million Share‑Buy‑back Announcement

In tandem with the dividend hike, Galliford Try unveiled a new share‑buy‑back scheme worth £10 million. The programme will see the company repurchase shares on the London Stock Exchange over the coming months, thereby reducing the outstanding share base and potentially boosting earnings‑per‑share figures. Analysts have welcomed the buy‑back as a sign that management believes the stock is undervalued relative to its earnings trajectory.

Analyst Optimism and Price Targets

The market reaction was reinforced by a wave of positive analyst commentary. On 17 September, Berengberg raised its price target to £530 (previously £510) and issued a “BUY” recommendation. Citigroup maintained a “BUY” stance, while Deutsche Bank increased its target for Trustpilot to £343 (from £331). Across the board, the consensus remains that Galliford Try’s fundamentals are solid and that its valuation is attractive given the recent earnings growth.

Market Context

The lift in Galliford Try shares coincided with a modest uptick in the FTSE 100, which rose 0.2 percent to 9,211.16 GBP at market open. Broader market sentiment remained cautious, with inflation data indicating a slightly lower-than‑expected rate in August, but the company’s results provided a clear catalyst for positive sentiment.

Investor Takeaway

Investors looking at Galliford Try’s recent performance will note the confluence of several key factors: a significant profit jump, a dividend increase, a fresh buy‑back programme, and an upbeat analyst outlook. These elements have collectively propelled the stock to its highest level in a year and may continue to support its valuation as the company pursues further growth in the construction sector.