Farrans Construction reported a pre-tax loss of £36.2m for 2025, a sharp reversal from the £3.4m profit recorded the previous year.
The Northern Irish contractor’s audited accounts show turnover fell by 22% from £382.4m to £297.7m in the year to 31 December 2025. Cash at hand increased from £9.3m to £16.4m.
Legacy contract provisions
Farrans’ directors attributed the loss primarily to additional provisions against legacy contracts, alongside economic uncertainty and inflationary pressures. Total provisions rose to £6.2m, from £700,000 in 2024, including £5.1m of additional provisions and £1.1m relating to insurance.
“During the year, additional provisions were taken against a number of legacy contracts,” the directors said.
They added that, although this resulted in a loss, Farrans had received a “commitment of ongoing support from Sisk Group”. The contractor will also have access to cash-pooling arrangements within the group as required.
Farrans did not provide further details of the legacy contracts. In May, however, the High Court enforced a £3.3m adjudication against the company concerning a payment notice for United Utilities Water.
The company said it expected to pay its insurance-related provisions over the next three years and that its directors would “defend vigorously against claims made against the company” connected with insurance.
Pipeline remains positive
Directors said Farrans had operated in a market affected by “economic uncertainty, inflationary pressures and cautious customer spending and funding across both public and private sectors”. They nevertheless said the core business had “performed well” and was supported by customer relationships and a diversified project portfolio.
The company held no external bank loans or overdrafts and paid no dividends in either 2025 or 2024. Average employee numbers fell from 655 to 628, while the wage bill increased from £35.3m to £37.1m.
Farrans said demand across its core sectors, including water, energy, aviation, transportation, marine and public-sector work, remained positive. Its directors said the year-end order book provided “good visibility of future revenues” and that membership of the Sisk Group would provide enhanced market access.
Sisk acquired Farrans in November. The deal followed an announcement of agreed terms in September and was viewed by industry observers as a sign of confidence in the infrastructure market.
In a statement accompanying the accounts, auditors Deloitte Ireland said Farrans had returned to profitability in 2026 and that directors’ forecasts projected further improvement in 2027.