Diploma (DPLM) Q3 2026 TU earnings summary

Executive summary

• Achieved 15% organic growth in Q3 and for the nine months ended 30 June 2026, maintaining strong momentum from H1 and excellent execution in Controls and IS Group segments.

• Controls segment delivered broad-based, double-digit growth; IS Group, Clarendon, Peerless, and Windy City Wire all outperformed.

• Life sciences faced tougher markets but remained resilient and is expected to deliver low double-digit growth for the year.

• Seals segment accelerated in Q3, with improvement over H1 and a positive outlook for Q4.

• Completed five acquisitions in Q3, including CDM, expanding U.S. defense exposure and strengthening the US interconnect platform.

Financial highlights

• Organic growth guidance for the year raised to 14%, up from previous guidance of 12%; acquisition guidance remains at 6%.

• Operating margin guidance increased to approximately 26.5%, up from 25%, representing a significant year-on-year step up.

• Profit growth guidance upgraded by 7%, now projecting over 40% growth for the year, with operating profit growth expected at approximately 42%.

• Peerless continues to deliver above group averages, though growth is moderating against tough comps.

• Acquisitions contribute an additional 6% to reported growth.

Outlook and guidance

• FY26 guidance upgraded for organic revenue growth, operating margin, and operating profit.

• Growth expected to moderate into next year, returning to high single-digit or 10%-ish levels.

• Margin expected to ease next year due to continued investments and acquisition dilution.

• No plans to upgrade the medium-term financial model; expect reversion to model assumptions in FY27.

• Strong acquisition pipeline and significant balance sheet headroom support future growth.