Serco Group Reports Higher H1 Profit and Revenue, Reaffirms FY26 Outlook as North America CEO Announces Departure

Serco Group plc (SCGPY, SRP.L), a provider of critical government services, announced higher underlying operating profit and revenue for the first half of fiscal 2026, while maintaining a positive outlook for the full year.

The company also announced that Michael LaRouche, CEO of Serco’s North America division, intends to leave to assume a CEO position at an internationally listed U.S. business.

LaRouche will stay with Serco to facilitate an orderly transition, and the search for his successor is already underway.

According to its trading update, underlying operating profit for the first half is projected at roughly £155 million, about 6 % higher than a year earlier.

Revenue is expected to reach approximately £2.5 billion, about 3 % above 2025 levels, with organic growth of around 1 %, driven by strong performance in the UK and Europe.

UK performance has benefited from defence contract mobilisations, improved justice‑sector contract execution, and stronger‑than‑anticipated revenue from immigration‑related services.

In North America, the company forecasts solid revenue growth, with contributions from MT&S more than compensating for ongoing procurement delays and a challenging year‑earlier comparison.

For fiscal 2026, guidance for underlying operating profit remains unchanged at approximately £300 million, about 10 % above last year’s £272 million.

The margin is expected to be around 6 %, roughly 40 basis points above 2025 and at the top of the 5 %–6 % medium‑term target range.

Full‑year revenue is still forecast at about £5 billion, with organic growth of roughly 3 %.

The anticipated uplift in second‑half organic growth stems from contract mobilisations and expansions in the UK and Australia, along with an expected improvement in the North American procurement environment, among other factors.

Anthony Kirby, Serco Group Chief Executive, commented: “The Group has delivered a solid first half, with revenue and margin gains, including strong organic growth in the UK and Europe and progress in our Asia‑Pacific business. Although US procurement delays persisted into the first half, we remain confident that structural demand drivers will continue to support the expansion of our North American pipeline.”

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