Turnover surged 30% to £228m as the business benefitted from public sector energy retrofit work, fuelled by government-backed decarbonisation schemes and group-wide synergies from its EDF parent.

Directors said tighter control over project delivery and more selective bidding helped restore performance restoring margins to 1.8%.

The firm’s order book grew to £191m, up 13% year-on-year, paving the way to further growth this year.

Dalkia Group CEO Gautier Jacob, said: “Dalkia Engineering has been expanding into the nuclear sector in 2024, both on the existing generating fleet and the new nuclear reactors under construction in Somerset.

“Low carbon energy infrastructures are critical to reach Net Zero targets by 2050 and Dalkia Engineering is growing its capabilities to support these projects delivery.

“Healthcare and life science projects are a key area of growth as well for Dalkia Engineering, supported by a strong market dynamic which is boosted by the government ambition.

“Final resolution of a legacy project impacted the profits this year, but Dalkia Engineering selective approach to projects and improved risks management provide a better position and outlook for the coming years.”

The wider Dalkia Group saw sales edge forward to £609m but higher operational costs saw pre-tax profit slide to just £312,000 in the year to 31 December 2024, down from £22m the year before which benefitted from profit taking on the £69m disposals of Suir Engineering.