Halma (HLMA) H1 24/25 earnings summary

Executive summary

• Achieved record first-half revenue of £1,074.3m, up 13% year-over-year, and adjusted EBIT of £223m, up 17%, with margin improving to 20.7% and double-digit increases in both revenue and profit.

• Strong organic growth, robust margins, high returns, and excellent cash generation enabled significant investments in R&D and acquisitions.

• Growth supported by both organic performance and acquisitions, with four acquisitions completed in H1 and seven year-to-date.

• Interim dividend increased by 7% to 9.00p per share, reflecting confidence in future prospects.

• 10-year compound annual growth rates for both revenue and profit at 12%, exceeding key performance indicators despite volatile macroeconomic conditions.

Financial highlights

• Revenue up 13% year-over-year to £1,074.3m; adjusted EBIT up 17% to £223m; EBIT margin improved by 70 bps to 20.7%.

• Return on Total Invested Capital (ROTIC) at 14.3%, up 110 bps, well above weighted average cost of capital.

• Cash conversion at 108%, net debt to EBITDA at 1.27x, and strong balance sheet support ongoing investments.

• Organic revenue growth of 11.5%, with price increases contributing 1-2% and acquisitions adding 3.5% to revenue.

• Adjusted EPS up 17% to 43.01p; statutory EPS up 15% to 36.08p.

Outlook and guidance

• Well positioned to deliver existing FY2025 guidance, expecting good organic constant currency revenue growth and adjusted EBIT margin around 21%.

• Group order intake remains ahead of revenue and prior year, supporting confidence in continued progress.

• FY25 forecasts: capex c.£38m, effective tax rate c.22.5%, central costs c.£47m, net finance expense c.£27m.