Halma (HLMA) Trading update summary

Executive summary

• Strong progress in the first half, with revenue growth guidance raised to low double-digit organic constant currency growth for the full year, up from upper single-digit guidance.

• Growth driven by robust performance in photonics within the Environmental & Analysis Sector and supported by order intake ahead of both revenue and the prior year.

• Continued strategic investment in organic growth and acquisitions, with two acquisitions completed and a healthy pipeline.

Financial highlights

• Full year revenue growth guidance increased to low double-digit organic constant currency percentage.

• Adjusted EBIT margin expected to be modestly above the middle of the 19-23% target range.

• Strong underlying cash generation, with full year cash conversion expected to align with the 90% KPI.

• Sterling appreciation expected to have a negative currency translation effect, with an estimated £74m negative revenue and £17m negative profit impact for FY26 compared to FY25.

Outlook and guidance

• Revenue growth guidance raised due to stronger-than-expected photonics growth.

• Adjusted EBIT margin guidance unchanged, remaining above the midpoint of the target range.

• Full year cash conversion expected to meet the 90% KPI.

• Negative currency translation effects anticipated to persist in the second half.