Halma (HLMA) H1 25/26 earnings summary

Executive summary

• Achieved record first-half results with 15% revenue growth and 27% EBIT growth, driven by strong organic performance across all sectors and premium growth in Photonics, despite varied market and geopolitical conditions.

• On track for the 23rd consecutive year of record profit and 47th year of dividend increases of 5% or more, reflecting confidence in the long-term business model.

• Two acquisitions completed for £129m, one major disposal, and continued strategic investment in R&D and talent to support future growth.

Financial highlights

• Revenue rose 15.2% year-over-year to £1,237.4m; organic revenue up 17.6%, with acquisitions contributing 1.6% and a currency headwind of 3.2%.

• Adjusted EBIT increased 27% to £282m, with margin up to 22.8% (up 210bps); EBIT grew 22.8% organically, and acquisitions contributed 3.1% to EBIT.

• Adjusted profit before tax up 29.3% to £270.5m; statutory profit before tax up 39.0% to £241.8m.

• Adjusted EPS up 28.6% to 55.32p; interim dividend per share increased 7% to 9.63p.

• Cash conversion at 79% due to high investment, expected to normalize to 90% by year-end.

Outlook and guidance

• Full-year guidance upgraded for the second time, now expecting mid-teens organic constant currency revenue growth and an adjusted EBIT margin of around 22%.

• Group order intake remains ahead of revenue and prior year, with premium growth in Photonics expected to continue as a tailwind into FY 2027.

• Management remains confident in delivering strong growth and returns despite ongoing market and macroeconomic uncertainty.