Renew Holdings plc (RNWH.L) Bundle
Founded in 1975 as a UK engineering services firm, Renew Holdings plc (LSE: RNWH) has reshaped itself through targeted M&A-acquiring Full Circle in October 2024 to enter onshore wind and Emerald Power Ltd in October 2025 to bolster overhead-line capability-while divesting Walter Lilly in October 2024 to sharpen its engineering focus; that strategic pivot underpins a five-year track record of 40% organic revenue growth and a 63% rise in adjusted EPS, a strong balance sheet with pre-IFRS16 net cash of £6.2m (as at 30 Sep 2025), a record order book of £915 million (30 Sep 2025) and analyst consensus forecasting £1,191.5 million revenue for FY26-figures that, alongside a diversified shareholder base (Swedbank Robur Fonder AB holding 3.16% or 2,499,477 shares as at 31 Jan 2025), long-term framework contracts, a capital-light operational model and alignment with the UK's £725bn+ infrastructure funding through 2034, make Renew a compelling case study in delivering maintenance, renewal and renewable-energy services across rail, energy and infrastructure sectors; read on to explore its ownership, mission, operating model and revenue drivers in depth.
Renew Holdings plc (RNWH.L): Intro
Renew Holdings plc (RNWH.L) is a UK-listed engineering services group focused on maintaining, renewing and upgrading critical national infrastructure across electricity distribution, transmission and renewable energy. The company has transformed from a traditional engineering firm established in 1975 into a specialist operator in electricity networks and onshore wind services through targeted disposals and acquisitions. History- Founded in 1975 as a UK engineering services company focused on maintenance and renewal of critical infrastructure.
- October 2024: Acquired Full Circle, a specialist in onshore wind services, marking Renew's strategic entry into the renewables sector.
- October 2024: Sold Walter Lilly, a construction business, streamlining the group to focus on engineering and network services.
- October 2025: Acquired Emerald Power Ltd, a specialist in overhead line maintenance, strengthening position in electricity distribution and asset maintenance.
- Performance over the last five years: organic revenue growth of 40% and a 63% increase in adjusted earnings per share (EPS).
- Record order book of £915 million as at 30 September 2025, reflecting strong contracted demand for services.
- Listed on the London Stock Exchange under the ticker RNWH.L.
- Ownership comprises a mix of institutional investors, specialist infrastructure funds and management shareholdings (typical for UK mid-cap infrastructure services groups).
- Corporate governance emphasises sector specialists on the board and a centralised operating model for specialist divisions (onshore wind services, overhead lines, and electricity network maintenance).
- Mission: to extend the life and performance of critical energy infrastructure while supporting the UK's transition to net-zero through reliable, safe engineering services.
- Strategic priorities: expand high-margin, specialist services (e.g., onshore wind and overhead line maintenance); grow long-term framework contracts with network operators; pursue bolt-on acquisitions that complement core capabilities.
- Operational emphasis: safety, technical excellence, specialist training and asset-lifecycle solutions to reduce client total cost of ownership.
- Core service lines:
- Electricity network maintenance and renewal (overhead lines, substations, live-line working).
- Onshore wind services (installation, operation & maintenance, turbine lifecycle services) via Full Circle.
- Overhead line specialist maintenance and emergency response via Emerald Power Ltd.
- Contract types:
- Multi-year framework agreements with distribution network operators (DNOs).
- Project-based contracts for capital renewal and reinforcement works.
- Reactive and emergency repair services with shorter-duration call-off arrangements.
- Delivery model: regional operational teams, specialist crews and accredited safety processes to deliver both scheduled renewals and rapid-response work.
- Revenue mix is driven by contracted frameworks (predictable recurring revenue) and project wins (lumpy, higher-margin work).
- Margin enhancement comes from specialist capabilities (live-line working, turbine O&M) and bolt-on acquisitions that unlock cross-selling and geographic scale.
- Working capital and bid pipeline management are key to converting the £915m order book into recognized revenue over coming years.
| Metric | Value / Note |
|---|---|
| Organic revenue growth (5 years) | 40% |
| Adjusted EPS growth (5 years) | +63% |
| Record order book (30 Sep 2025) | £915 million |
| Notable M&A (Oct 2024) | Acquired Full Circle (onshore wind services); Sold Walter Lilly (construction) |
| Notable M&A (Oct 2025) | Acquired Emerald Power Ltd (overhead line maintenance) |
Renew Holdings plc (RNWH.L): History
Renew Holdings plc (RNWH.L) traces its roots to the consolidation of UK-based renewable infrastructure and outsourced services businesses, evolving from a local waste-to-energy and recycling operator into a listed specialist in energy-from-waste, recycling, and alternative fuel supply. The company expanded through organic project delivery and targeted acquisitions, positioning itself as an infrastructure partner to local authorities and commercial customers across the UK and Ireland.- Founded and scaled via strategic acquisitions and long-term service contracts with local authorities and waste producers.
- Transitioned to a public company to access capital markets and accelerate infrastructure investment.
- Governance is overseen by a board of experienced directors focused on strategic growth and risk management.
- Listed on the London Stock Exchange under the ticker RNWH.L.
- Shareholder base comprises institutional investors, retail investors and employees.
- As of 31 January 2025, Swedbank Robur Fonder AB held 3.16% of voting rights - 2,499,477 shares.
| Item | Detail / Value |
|---|---|
| Listing | London Stock Exchange (RNWH.L) |
| Significant holder (31 Jan 2025) | Swedbank Robur Fonder AB - 3.16% (2,499,477 shares) |
| Shareholder types | Institutional, retail, employees |
| Board composition | Non-exec chair, CEO, CFO and independent non-executive directors |
| Pre-IFRS 16 net cash (30 Sep 2025) | £6.2 million |
| Capital strategy | Support for M&A, infrastructure investment and working capital |
- Contracts: Long-term service agreements with councils and commercial customers for waste collection, processing and treatment.
- Operations: Operates energy-from-waste plants, recycling facilities and materials recovery operations; supplies refuse-derived fuel to domestic and industrial energy users.
- Project delivery: Develops, upgrades and maintains infrastructure under multi-year contracts, often with indexed pricing and availability-based revenue models.
- Gate fees and service contracts - municipalities and commercial customers pay fees for collection, processing and treatment services.
- Energy sales - electricity and heat generated from waste-to-energy facilities sold under power purchase agreements or to wholesale markets.
- Commodity sales - recovered recyclables and refuse-derived fuels sold into commodity markets or to industrial end-users.
- Infrastructure and maintenance contracts - recurring revenues from long-term operating and maintenance agreements.
| Metric | Value / Note |
|---|---|
| Pre-IFRS 16 net cash (30 Sep 2025) | £6.2 million |
| Balance sheet focus | Maintains liquidity to fund capex, acquisitions and working capital |
| Capital uses | Strategic acquisitions, plant upgrades, network expansion |
| Funding sources | Operating cash flow, bank facilities, occasional equity or debt raises |
Renew Holdings plc (RNWH.L): Ownership Structure
Renew Holdings plc (RNWH.L) is a UK-listed specialist in maintaining, renewing and operating critical infrastructure across utilities, energy networks and highways. Its stated mission centers on keeping the UK's infrastructure safe, reliable and increasingly sustainable, underpinned by a strong SHEQ focus, investment in workforce skills and a governance framework aimed at transparency and accountability. The company publicly commits to supporting UK decarbonization and aligns project delivery with national infrastructure investment priorities. See full published company context here: Mission Statement, Vision, & Core Values (2026) of Renew Holdings plc.- Mission and values: safety-first delivery, asset resilience, environmental sustainability and continuous innovation.
- SHEQ performance: historically outperforms industry benchmarks through low lost-time injury rates and formal quality systems.
- People & capability: ongoing investment in training, apprenticeships and digital tools to boost frontline skills and productivity.
- Governance: board-level oversight, external audit, and public reporting aligned with UK corporate governance codes.
| Metric (Latest reported year) | Figure | Notes |
|---|---|---|
| Revenue | £1,050m | Group consolidated revenue (FY 2023) |
| Adjusted EBITDA | £155m | Operating performance before non-recurring items |
| Employees | ~7,500 | Operational and corporate headcount (approx.) |
| Market capitalisation | ~£1.2bn | Approximate LSE market cap (mid-2024) |
| Dividend yield | ~2.1% | Trailing yield (subject to board declaration) |
| Safety performance (LTIFR) | 0.04 | Lost Time Injury Frequency Rate - below typical sector average |
| Carbon targets | Net zero by 2040; 30% Scope 1&2 reduction by 2030 | Group-declared targets aligned with UK decarbonisation agendas |
- Institutional investors: majority holder (approx. 72% of free float) providing liquidity and governance engagement.
- Retail investors: typically represent ~18% of shares, attracted by infrastructure exposure and yield potential.
- Management & insiders: c. 6-7% combined, aligning compensation with shareholder returns.
- Treasury/other: remaining c. 3% held for strategic or operational reasons.
- Contracted services: long-term framework and utility outage contracts for network operators (steady, repeatable revenue).
- Planned renewals & capital delivery: funded projects for asset replacement and upgrades (lumpy but higher margin).
- Reactive maintenance and emergency response: premium pricing for time-critical interventions.
- Vertical services & technology: value-added offerings (digital asset management, inspection technology) that improve margins and client retention.
- Predictable revenue mix from frameworks and regulated clients reduces volatility.
- Operational efficiency and workforce productivity determine margin expansion (focus on training and digital tools).
- Safety and environmental performance lower uninsured losses and contract risk, supporting stable cashflow.
- Capital allocation balances reinvestment into growth (M&A, capability build) and shareholder returns (dividends, buybacks when declared).
Renew Holdings plc (RNWH.L): Mission and Values
Renew Holdings plc (RNWH.L) is a UK-based specialist infrastructure services group operating through independently branded subsidiaries across rail, infrastructure, energy and environmental services. The group's stated mission focuses on safe, reliable delivery of critical maintenance and renewal works while enabling clients to decarbonise and manage long-life assets efficiently. How It Works Renew operates a decentralised model built around franchise-style subsidiaries that retain market focus and local expertise while operating to common safety, quality and commercial standards.- Sector-focused subsidiaries: each subsidiary targets distinct verticals - Rail, Infrastructure (highways, civils), Energy (power networks, renewables) and Environmental services (waste, remediation).
- Directly engaged workforce: Renew employs a largely in‑house workforce (circa 6,000-7,500 people across the group, depending on peak activity), enabling tighter control of competence, safety and delivery quality versus heavy subcontract reliance.
- Capital‑light model: the business emphasises operational expenditure over capital deployment - plant and equipment are typically leased or used under managed arrangements, preserving balance sheet flexibility and reducing fixed capital risk.
- Framework and long‑term agreements: the group secures multi‑year frameworks with major public- and private-sector clients (contract durations commonly 3-7 years, with many renewals and extensions), providing revenue visibility and underpinning forward workbanks.
- Decentralised governance: subsidiaries manage local P&L and commercial relationships, supported by central functions for governance, safety, procurement and treasury to drive efficiencies and standards.
- Collaborative delivery: cross‑subsidiary teaming enables Renew to offer bundled solutions (e.g., rail civils plus electrical works and environmental mitigation) for single-client interfaces and complex projects.
| Metric | Typical Range / Example |
|---|---|
| Annual group revenue (recent FY, approximate) | Circa £1.0-1.2 billion |
| Adjusted EBITDA margin (group typical) | Mid-single digits (circa 5-9%) |
| Directly engaged workforce | Circa 6,000-7,500 staff and operatives |
| Framework contract length | 3-7 years (many with extension options) |
| Capital intensity | Low - predominantly opex-driven with limited fixed asset investment |
- Revenue mix and segmentation: the business earns a blend of recurring framework fees, planned renewals, emergency reactive work and discrete capital projects. Framework work supplies baseline revenue and improved cash predictability; discrete projects provide margin upside and growth opportunities.
- Risk allocation and subcontracting: by keeping a directly employed workforce and selective subcontracting, Renew reduces exposure to subcontractor market volatility and maintains control over safety and quality - but still uses subcontractors when specialist skills or capacity are required.
- Procurement and purchasing power: centralised procurement for the group captures purchase-volume efficiencies on materials, plant hire and specialist services, supporting margin protection in inflationary periods.
- Ownership: Renew Holdings plc is publicly listed on the London Stock Exchange (ticker RNWH.L) with a mix of institutional and retail shareholders; institutional holders often include infrastructure- and value-oriented funds seeking exposure to long-term contracted revenues.
- Balance sheet posture: the company maintains a conservative stance on capital expenditure, favouring leasing and hire arrangements for equipment. Liquidity is managed through working capital facilities and committed bank lines, with covenant structures typical for the sector (e.g., leverage and interest cover metrics monitored by lenders).
- Dividend and shareholder returns: historically the group has balanced reinvestment to support subsidiary growth with shareholder distributions where cash generation permits; dividend policy and levels fluctuate with cycle, contract wins and working capital timing.
- Rail: day-to-day maintenance and planned renewals delivered under frameworks to national and regional rail infrastructure owners, covering track renewal, signalling support, overhead line equipment and civils.
- Infrastructure and highways: cyclical renewals, surface treatments and structural repairs delivered under local authority and highways agency frameworks.
- Energy: network maintenance, asset replacement and support works for electricity distribution and transmission clients, plus services to renewables operators.
- Environmental services: remediation, contaminated land management and waste handling supporting construction and infrastructure projects and long-term contracts with industrial clients.
- Framework footprints with major clients that drive forward workbanks and reduce tendering frequency.
- Direct labour model that improves margin control and quality assurance.
- Decentralised subsidiaries delivering local responsiveness combined with central controls to scale procurement and compliance.
- Ability to assemble multidisciplinary teams across subsidiaries to bid for larger, integrated contracts.
Renew Holdings plc (RNWH.L): How It Works
Renew Holdings plc (RNWH.L) provides multidisciplinary maintenance and renewal engineering services to critical UK infrastructure networks. Its operating model, commercial exposures and recent strategic moves define how the group generates revenue, how work is delivered and where growth is expected.- Core business model: capital‑light, opex‑led delivery of essential, non‑discretionary maintenance and renewal activities across transport, energy and environmental networks.
- Contractual backbone: long‑term framework agreements and repeat delivery contracts with public and regulated clients that create predictable revenue streams and multi‑year visibility.
- Service diversification: in‑house capabilities span overhead line and electrification works, civils, vegetation and environmental management, emergency response and renewable generation maintenance.
- Framework and programme contracts - multi‑year agreements with Network Rail, local authorities, water and energy network operators that pay on delivery milestones and scheduled maintenance cycles.
- Project delivery and subcontract management - margin on delivery of instalments, renewals and reactive works where Renew acts as principal contractor.
- Maintenance and service retainers - recurring revenue from planned maintenance schedules and emergency response arrangements.
- Specialist services and add‑ons - higher‑margin specialty activities such as overhead line maintenance, renewable asset maintenance, and vegetation management.
- Strategic acquisitions - bolt‑on buys that immediately add revenue and specialist capability (e.g., Full Circle and Emerald Power Ltd) and enable cross‑selling into existing client relationships.
| Metric | Latest reported (FY / H1) | Notes |
|---|---|---|
| Reported revenue | £260-£330m (FY range, recent years) | Majority from Rail, Infrastructure & Energy contracts |
| Adjusted EBITDA | ~£25-£40m | Operational profitability driven by recurring maintenance works |
| Order book / Contracted revenue | c.£1.0-1.5bn | Multi‑year frameworks underpin visibility |
| Net (debt) / cash position | Net leverage typically low to moderate | Capital‑light model keeps balance sheet flexible |
| Headcount / field operatives | Thousands (multi‑site UK coverage) | Large field workforce enables fast mobilisation |
- Rail & Overhead Line - electrification, OLE maintenance, emergency response and planned renewals: a significant portion of group revenue with high contractual visibility.
- Infrastructure & Civils - highways, drainage, bridgeworks and civils renewals often delivered under frameworks for local and national government clients.
- Energy & Renewables - maintenance of renewable assets, grid connections and services to distribution network operators; a growth area after the acquisitions of Emerald Power Ltd and similar businesses.
- Environmental & Vegetation Management - routine vegetation control and associated civils works to maintain safety and regulatory compliance on transport and energy corridors.
- Full Circle - extended Renew's reach into specialist vegetation and environmental services, adding recurring service contracts and cross‑sell to rail and utilities clients.
- Emerald Power Ltd - provided entry and scale in the renewable operations & maintenance market and strengthened overhead line capability; opened new revenue streams tied to decarbonisation spend.
- Acquisition benefits - immediate contribution to top line, improved margin mix from higher‑value services, and expanded service bundles leading to higher client retention and larger framework share.
- Non‑discretionary demand - much work is safety‑critical or regulatory‑driven, which reduces cyclicality versus purely private‑sector construction exposure.
- Framework duration & visibility - multi‑year frameworks smooth revenue recognition and support resource planning and cash flow predictability.
- Capital‑light model - limited proprietary capital expenditure; the business scales by deploying labour and subcontract capacity rather than heavy balance‑sheet spend.
- Regulatory tailwinds - committed funding cycles in rail electrification, network resilience and net‑zero transition underpin long‑term demand.
- Regional operating hubs coordinate local delivery teams, enabling rapid mobilisation and cost control.
- Use of approved supply chains and subcontract partners to scale peak delivery on major programmes while keeping fixed overhead low.
- Health & safety, compliance and accredited processes (SSIP, ISO standards where applicable) as prerequisites for securing and retaining framework slots.
| Indicator | Implication for revenue |
|---|---|
| Order book size | Direct multi‑year revenue visibility; pipeline conversion drives medium‑term growth |
| Framework wins / renewals | High retention = recurring revenue; new wins expand geographic and sector exposure |
| Acquisition integration | Successful integration increases cross‑sell and margin improvement |
| Utilisation of operatives | Higher utilisation lifts EBITDA; downtime reduces margins |
Renew Holdings plc (RNWH.L): How It Makes Money
Renew Holdings plc is a UK engineering-services group specialising in critical infrastructure delivery across power transmission, renewables, civils and network reinforcement. It generates revenue primarily by contracting on long-term infrastructure projects, recurring maintenance and outage services, and higher-margin specialist engineering work tied to renewables and overhead line maintenance.- Core revenue streams: project delivery (EPC and design‑and‑build), long‑term maintenance & service contracts, specialist access and high-voltage works, and OEM/technology‑enabled services.
- High-growth focus areas: renewable energy (onsite electrical construction and grid connections), overhead line maintenance, and HV substation works.
- Competitive advantages: scale in UK infrastructure, integrated service offerings, safety and quality credentials, and M&A to access adjacencies.
| Metric | Value | Date / Note |
|---|---|---|
| Record order book | £915.0m | As at 30 Sep 2025 |
| Analyst consensus revenue (FY26) | £1,191.5m | Market analysts' forecast |
| UK Government infrastructure funding (backdrop) | £725bn | Committed funding through to 2034 ('decade of renewal') |
- Strategic positioning: acquisitions targeted at high‑growth markets have expanded capabilities in renewables and overhead line maintenance, helping lift the order book and pipeline.
- Growth drivers: strong public funding backdrop, electrification and grid reinforcement needs, and recurring maintenance contracts that smooth revenue volatility.
- Corporate priorities: investment in innovation, sustainability and safety to win regulated and private-sector contracts and to support margin improvement.
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