Diploma (DPLM) Q1 2025 TU earnings summary

Executive summary

• Organic revenue grew 7% in Q1, with consistent trends across all three sectors and performance meeting expectations for the three months ended 31 December 2024.

• Reported revenue increased by 12%, including a 7% contribution from acquisitions and a 2% FX headwind.

• Full-year guidance remains unchanged, with expectations to deliver performance ahead of the financial model.

• Management remains confident in medium- and long-term prospects, especially for Seals and Life Sciences.

Financial highlights

• Organic revenue growth of 7% year-over-year in the quarter.

• Reported revenue up 12% year-over-year, with acquisitions contributing 7%.

• FX represented a 2% headwind for the quarter.

• Operating margin remained strong and aligned with internal forecasts.

• Adjusted earnings per share have grown at an average of approximately 15% per annum over the past fifteen years.

Outlook and guidance

• No change to full-year guidance; performance expected to be ahead of the financial model.

• Full year guidance: organic revenue growth of around 6%, net acquisition growth of about 2%, and operating margin near 21%.

• Management confident in medium-term recovery for Seals and long-term growth across all sectors.

• Mild FX tailwind expected if current rates persist, with the dollar favorable and Canadian/Australian currencies as minor drags.

• Next scheduled update is the half year results on 20 May 2025.