Diploma (DPLM) H1 2025 earnings summary

Executive summary

• Delivered strong H1 2025 results with 14% revenue growth to £728.5m, 9% organic growth, and adjusted EPS up 23% to 80.2p, supporting a full-year guidance upgrade.

• Return on capital reached 19.1%, reflecting disciplined execution and a diversified, resilient business model.

• Healthy and diversified acquisition pipeline, robust free cash flow conversion at 78%, and strong balance sheet underpin confidence for continued growth.

• Upgraded full-year guidance due to positive trading momentum and portfolio diversification, expecting higher organic growth and margins.

• Focus remains on sustainable organic growth, disciplined capital allocation, and selective acquisitions to drive long-term compounding.

Financial highlights

• Revenue rose 14% to £728.5m, with organic growth of 9% and operating margin up 190bps to 21.5%.

• Adjusted operating profit increased 25% to £156.9m; statutory operating profit up 58% to £139.4m.

• Adjusted EPS grew 23% to 80.2p; interim dividend per share up 5% to 18.2p.

• Free cash flow of £83.8m, up 26%, with 78% cash conversion; net debt reduced to £373.5m, leverage at 1.1x.

• Statutory profit benefited from £19.3m net gain on disposals.

Outlook and guidance

• Upgraded FY25 guidance: organic revenue growth now expected at 8% (from 6%), operating margin at ~22% (from ~21%), and net acquisition growth at 2%.

• Expect meaningful EPS upgrade versus previous guidance, with strong momentum into the second half across all sectors.