RSK delivers growth and operational leverage improvement

(by Verity Mitchell)

RSK Group has published its annual report and consolidated financial statements for the period from 7 April 2025 to 5 April 2026. It reported a 10.3% increase in revenue to £2,472m. Water now represents 43.3% of revenues, growing by 25% year-on-year. Reported EBITDA growth of 24.2% to £152,1m showed increased operational leverage, with a 30 basis points margin increase to 11.4%. Its adjusted EBITDA, which reflects pro forma adjustments for acquisitions, acquisition cost savings, and non-controlling interests, increased 32.1% to £225.7m.

The group completed 11 acquisitions during the year, strengthening its offering in the UK, Australia and Africa. Through these acquisitions, RSK welcomed new colleagues from eb7, Apollo Strategic Communications, 3BM Group, Kendall Kingscott, Edge Impact, Pegasys, N-Able Group and Elsym Installations.

Operating profit increased to £18.1m, up 331%, but goodwill impairments increased by 559% to £4,360m. Cash generated from operations was £117.2m, but operating cash conversion fell to 77.1% from 86.4% because of some delayed billing.

£80.9m was invested in research and development. RSK met all sustainability-linked key performance indicators associated with its financing agreement. The resulting £966,000 interest-rate saving was reinvested in sustainability projects.

During the financial year, RSK streamlined its operations from nine to six trading divisions, each supported by a divisional board with accountability for strategy, performance and collaboration. Management hoped this will help the group to articulate its broader service offering to customers and increase cross-selling opportunities, whilst preserving the operational autonomy of individual businesses. It also increased its focus on stronger opportunity selection, pricing, utilisation, margin protection, cash discipline and collaboration between businesses.

Additionally, RSK has published its first climate transition plan, setting out its intended pathway to reach net zero greenhouse gas emissions by 2040. Greenhouse gas emissions intensity has reduced by 38% compared to the FY20 baseline.

Over five years, RSK’s annual revenues have grown from £275m to over £2bn, a compound annual growth rate of 52%.