Halma (HLMA) H2 25/26 earnings summary

Executive summary

• Achieved record results with the 23rd consecutive year of profit growth, driven by strong, broad-based organic growth across all sectors and a clear growth strategy focused on long-term markets.

• Premium growth from Photonics business significantly contributed to results, with strong margins, high returns, and robust cash conversion.

• Continued substantial reinvestment in innovation, talent, and acquisitions to support future growth and reinforce a sustainable growth model.

Financial highlights

• Organic revenue up 16.2% year-over-year, exceeding the 5% target; total reported revenue growth of 14.4%.

• EBIT grew 19% year-over-year, with an EBIT margin of 22.7%, up 110 basis points.

• EPS increased 21%, surpassing the 10% KPI target.

• R&D investment reached GBP 123 million (4.7% of revenue); cash conversion at 93%, above the 90% target.

• Net debt increased to £769m, with gearing at 1.16x.

Outlook and guidance

• Expecting low double-digit organic constant currency revenue growth for FY 2027, including approximately 5 percentage points from Photonics.

• Adjusted EBIT margin anticipated to be in line with FY 2026, excluding one-off items.

• Capex forecasted at £55m–£60m, effective tax rate at 23.5%–24.0%, and net finance expense around £30m for FY27.