Capita (LON:CPI) Issues Earnings Results

Capita (LON:CPI) issued its quarterly earnings results on Tuesday. The company reported GBX 13.38 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Capita had a negative net margin of 7.45% and a negative return on equity of 142.88%.

Here are the key takeaways from Capita’s conference call:

• CSPS remediation materially weakened results: First-half operating profit fell 32% to £32 million, with the Civil Service Pension Scheme contract contributing £14 million of costs and collateral pressure on consulting revenue. Management said resolving the backlog remains its top operational priority, with improvement targets set for September and October.
• Cash flow and leverage remain under pressure: Free cash flow was positive at just £3.5 million, while pre-IFRS 16 net debt rose to £200 million and leverage increased to 1.6x EBITDA. The company expects a £35 million–£50 million free-cash-flow outflow before business exits for the full year.
• Public-sector and pensions growth supported bookings: Public Service revenue rose 2.4% and Pension Solutions revenue increased 24.7%, while the order book grew to £4 billion before the additional £425 million Transport for London extension. First-half contract wins included Synergy, Army Collective Training System, and expanded Primary Care Support England work, although much of the revenue will arrive beyond 2026.
• Capita is simplifying and investing in AI-led services: The private contact-center divestiture has completed, and management expects further cost savings, including £40 million planned for 2026–27. Executives also highlighted nearly 500 AI agents deployed, expanded hyperscaler partnerships, and a new model for operating and governing agentic AI within public-sector and regulated-industry processes.

Capita Stock Performance

Shares of CPI opened at GBX 252.38 on Tuesday. The company has a market cap of £302.30 million, a PE ratio of -1.75, a price-to-earnings-growth ratio of 0.18 and a beta of 0.87. The firm has a 50-day moving average of GBX 304.19 and a 200-day moving average of GBX 316.62. Capita has a one year low of GBX 215 and a one year high of GBX 416. The company has a debt-to-equity ratio of 1,526.79, a current ratio of 0.54 and a quick ratio of 0.53.

Insider Activity

In other Capita news, insider Pablo Andres purchased 1,767 shares of the stock in a transaction on Friday, May 29th. The shares were purchased at an average price of GBX 402 per share, with a total value of £7,103.34. Also, insider Adolfo Hernandez purchased 2,763 shares of the stock in a transaction on Friday, May 29th. The shares were acquired at an average cost of GBX 405 per share, for a total transaction of £11,190.15. Insiders purchased a total of 27,410 shares of company stock valued at $10,897,189 in the last 90 days. 5.34% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Peel Hunt restated a “buy” rating and issued a GBX 311 price objective on shares of Capita in a report on Tuesday. Shore Capital Group reiterated a “buy” rating on shares of Capita in a report on Thursday, April 23rd. Finally, Canaccord Genuity Group reduced their price target on Capita from GBX 900 to GBX 750 and set a “buy” rating for the company in a research report on Friday, July 10th. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, Capita has a consensus rating of “Moderate Buy” and an average price target of GBX 432.20.

About Capita

Capita is a modern outsourcer, helping clients across the public and private sectors run complex business processes more efficiently, creating better consumer experiences. Operating across 8 countries, Capita’s colleagues support primarily UK and European clients with people-based services underpinned by market-leading technology. We play an integral role in society – our work matters to the lives of the millions of people who rely on us every day.