Diploma (DPLM) H1 2026 earnings summary

Executive summary

• Delivered strong H1 2026 results with 17% revenue growth to £851.1m, 15% organic growth, and 36% EPS growth, continuing a long-term compounding track record.

• Operating profit grew 33% to £208.9m, with margin up 300bps to 24.5% and return on capital reaching 22.7%.

• Upgraded full-year guidance, now expecting over 30% operating profit growth, 12% organic growth, and 6% from acquisitions.

• Portfolio diversification and 15 acquisitions in 12 months support resilience and structural organic growth.

• Strategy focuses on scalable, high-quality businesses, selective acquisitions, and disciplined capital allocation.

Financial highlights

• Revenue rose 17% year-over-year to £851.1m, with 15% organic growth and 3% from net acquisitions.

• Adjusted operating profit reached £208.9m, up 33%, with margin up 300bps to 24.5%.

• Adjusted EPS grew 36% to 109.2p; free cash flow of £110.7m with 76% cash conversion.

• Return on capital increased to 22.7%; dividend per share up 5% to 19.1p.

• Net debt at £343.9m, leverage at 0.8x, and liquidity headroom of £639.7m.

Outlook and guidance

• Upgraded FY26 guidance: organic growth of 12% (up from 9%), acquisitions to contribute 6% (up from 3%), and operating margin maintained at ~25%.

• Operating profit growth expected to exceed 30%, a 6% upgrade to consensus.

• Positive momentum expected to continue into H2, despite macro uncertainty and strong prior-year comparator.