Full Year Results 2025

Capita plc CEO Adolfo Hernandez said:

"2025 was a pivotal year for Capita as we progressed our transformation to become the first AI-led business process outsourcer. We are building momentum as a leaner, more agile business and are well positioned to capture the market opportunity as customers increasingly look to AI and technology to improve productivity and efficiency.

“We have made strong progress across our Better Capita strategy, with Better Technology at the centre. We provide knowledge and experience of our customers Business Process Operating Systems that integrate AI into complex, real-world workflows that require accountability, security, and human oversight. As our £19.8bn pipeline shows, demand for our capabilities, AI solutions and digital delivery continues to grow, this year around two thirds of the Group's revenue was AI-enabled and we further improved customer satisfaction, with cNPS rising to +31, the highest level since we began measuring it in 2018.

“Alongside this, we delivered a major milestone by delivering £250m of annualised cost savings, strengthening margins and enabling reinvestment in our product, data and cyber capabilities. We also resolved several significant legacy challenges to simplify the business. As a consequence of our disciplined action, we saw adjusted operating profit increase 34% to £114m and the operating margin increase 140bps to 5.2%.

“With clear priorities for 2026, we remain focused on disciplined execution and are confident in our ability to drive further progress in Capita’s transformation.”

2025 Financial Results

• Adjusted revenue¹ declined 1.2% to £2.2bn (2024: 6.8% decline), with strong performances in Public Service and Pension Solutions more than offset by revenue decreases in Contact Centre

•  Public Service division (66% of Group adjusted revenue¹) delivered its highest adjusted revenue¹ growth in the last five years increasing by 4.5%, helped by contract wins and expansion of existing scopes

• Revenue reduction in Contact Centre of 17.5% (24% of Group adjusted revenue¹) from ongoing impact of previously announced contract losses and volume reductions in the telecommunications vertical

•  Pension Solutions adjusted revenue¹ increased 4.5% (9% of Group adjusted revenue¹), as we saw the benefit from indexation on existing contracts and go-live on new contracts

• Adjusted operating profit¹ increased 34.2% to £113.5m (2024: £84.6m), reflecting the benefit from the cost reduction programme which more than offset the Group’s revenue reduction

•  The Group's adjusted operating margin improved to 5.2% from 3.8% in 2024. Strong performances in both Public Service and Pension Solutions, delivering operating margins above the Group's medium term target

• Reported operating loss of £129.6m (2024 loss: £9.9m) reflecting the £56.1m cost associated with our successful cost reduction programme and non-cash goodwill impairment of £73.7m recognised in the Contact Centre business

•  Free cash outflow, excluding the impact of business exits¹, of £54.0m (2024 outflow: £110.9m) reflecting strong improvement in cash generated from operations. Free cash outflow, includes £53m cost to achieve savings on cost reduction programme and £14m settlement with ICO following March 2023 cyber incident. Cash flow was positive towards the end of the year as expected

•  Net financial debt (pre-IFRS 16) of £143.4m (2024: £66.5m)

•  Extended maturity date of £250m Revolving Credit Facility by 12 months to 31 December 2027; including a £50m accordion option with remaining terms substantially unchanged. Additional liquidity from £75m committed financing facility signed in February 2026, with same covenants as RCF, expiring in 18 months

Continued progress against strategic priorities to build a Better Capita

•  Delivered £250m of annualised cost savings, with a significant proportion being realised as AI and gen AI are further embedded throughout the business. Further opportunity to deliver greater value in Contact Centre business

•  cNPS improved to +31, up three points from 2024, the highest level since first measured by the Group in 2018

•  Recently launched Capita’s AI Catalyst Stack, an integrated platform leveraging technology from hyperscaler partners, reducing AI solution deployments from six weeks to days

•  Launch and scaled Capita’s Catalyst Lab as the mechanism to capture market and operational requirements, prototyping and solution scaling, 40 pilot products within the first nine months and 15 solutions now moved from concept to production

•  Agreed hand-back terms for final contracts in the loss-making closed book Life & Pensions business unit, concluding a key component of our Manage for Value strategy, and completed the exit from our Mortgage Servicing business

• Settlement with the ICO relating to the Group’s 2023 cyber incident

• Investing in our people, upskilling them for the future through our AI, data and technology academy

Growth and contract wins

• Total contract value (TCV) won increased by 36% to £2,055.3m, with a strong performance in Capita Public Services and Contact Centre, rising 28% and 66% respectively

• Improved book to bill ratio of 0.9x (2024: 0.6x); win rate across all opportunities of 64%, up from 32% in 2024

•  Unweighted pipeline increased 41% from the half year to £19.8bn

•  Significant wins included a renewals and extensions with the Gas Safe Register, Education Authority Northern Ireland and Primary Care Support England in Public Service. In the Contact Centre business there were wins with the BBC and Southern Water

•  In December 2025, the Group went live with the administration of the Civil Service Pension Scheme, one of the largest and highly complex pension schemes in the UK. We inherited a backlog of 86,000 cases from the previous administrator, significantly higher than forecast, with over 12,000 members owed payments and 20 million poor data records which we are working jointly with the Cabinet Office to clear under an agreed urgent recovery plan

Outlook for 2026

• We are excited about our positioning in a strong market with significant opportunity ahead, leveraging the strong foundations we have put in place as the market and technology landscape continues to change and evolve

• Capita is now a leaner business, focused on delivering scalable and repeatable solutions to customers utilising its technology partners and in 2026, we will be launching further AI-powered products which will make us more competitive, re-enforcing our right to win and more relevant to our regulated and public customers who are increasingly looking to benefit from AI solutions in a trusted environment

• Reflecting good growth in Public Service and Pension Solutions, offset by challenges in Contact Centre, we expect the Group to deliver low single digit adjusted revenue¹ growth in 2026 compared to 2025

•  Small decrease in adjusted operating margin¹ reflecting continued challenges in Contact Centre and increased mobilisation costs in Pension Solutions and Public Service 

•  We expect the Group to generate free cash flow, excluding the impact of business exits¹ between £20m - £40m, with a cash conversion of 70% - 80%

1. Definitions and calculations of non-IFRS measures (alternative performance measures) can be found in the Appendix.

Investor presentation

A presentation for institutional investors and analysts hosted by Adolfo Hernandez, CEO and Pablo Andres, CFO, will be held at the Novotel, 3 Kingdom Street, Paddington, London, W2 6BD at 09:00am UK time, 10 March 2026. There will also be a live webcast (link below) which will subsequently be available on demand. The presentation slides will be published on our website at 07:00am and a full transcript will be available the following day.

Participant webcast: https://webcast.openbriefing.com/capita-mar26/

For further information: