Mace Construct generated turnover of £2.31bn in 2025, according to the first group accounts published since Mace’s consultancy business was separated from the construction division.
The construction business increased turnover from £2.09bn in 2024. Its divisional pre-tax profit rose to £41m, compared with a restated £5.6m in the previous year, taking its pre-tax margin from 0.3% to 1.8%.
The majority sale of Mace Consult to Goldman Sachs Alternatives completed in March 2026, after the accounts’ reporting period. Mace said the demerger removed perceived conflicts of interest linked to the consultancy arm advising asset owners.
Infrastructure expansion
Mace said the separation would enable its construction business, which is due to be rebranded, to pursue opportunities in new infrastructure markets including rail, water, ports and defence.
Mace Group chief executive Jason Millett said: “It will take time for this diversification strategy to produce significant growth, but we have already started gauging interest and initiating early conversations in these important markets.”
The infrastructure business grew by 42% during 2025 and is expected to generate about £500m in revenue in 2026. Projects completed during the year included the £153m refurbishment of Heathrow Airport’s cargo tunnel and the £400m redevelopment of Manchester Airport’s Terminal 2. Mace also secured an £85m contract to extend Pier 6 at Gatwick Airport.
Other wins included a construction management appointment for the British Library extension and the main construction contract for the Vulcan 20-20 laser research facility in Oxfordshire.
Selective bidding strategy
Mace has reduced its construction business units from five to three: Commercial; Public, Life Sciences and Technology; and Infrastructure.
The business said 58% of the value of new contracts signed in 2025 involved lower-risk arrangements such as target-cost and construction management contracts. These generally produce less revenue than traditional contracting, but Mace said they offered more attractive margins.
The division secured 28 new projects with a combined value of more than £5.3bn and completed 32 schemes, 19% more than in 2024. Its year-end workforce stood at 2,175, including agency and contingent workers.
Group loss includes exceptional costs
Once central group costs, exceptional charges and legacy development activities are included, Mace’s remaining operations recorded a statutory pre-tax loss of £61.9m in 2025, compared with a £44.6m loss in 2024.
The 2025 loss included £59.7m of exceptional charges: £22.7m in restructuring and separation costs, £21m linked to terminating a share-appreciation rights scheme and a £16m impairment against a loan to the Botley development joint venture.
The latest accounts also recognised a £13m provision after a property was damaged by work carried out by a subcontractor. Mace said an investigation was continuing and expected insurance to cover the cost; no claim had been made against the company at the reporting date.
The separation enabled Mace Group to repay its remaining borrowings in March 2026, leaving the construction business debt-free. Chief financial officer David Allen said administrative expenses allocated to other activities were expected to reduce substantially following the demerger.
Executive chairman Mark Reynolds reiterated Mace’s ambition to become one of the UK’s three largest contractors. Mace said 2026 would be a transitional year as it removed overheads associated with its former global structure and developed a more streamlined UK construction business.