Hill & Smith (HILS) Trading Update summary

Trading and financial performance

• Revenue rose 3% on a constant currency basis, with further operating margin expansion over a strong prior period.

• US Engineered Solutions saw good growth and maintained operating margins, driven by strong demand in larger platform businesses.

• UK & India Engineered Solutions experienced subdued UK demand but improved profitability through project activity and cost efficiency.

• Galvanizing Services performed robustly, with modest US volume growth despite early poor weather and strong UK volume growth.

• Cash generation remains strong, supporting both organic and inorganic growth opportunities, with an active M&A pipeline.

Outlook and guidance

• Full year 2025 operating profit is expected to be in line with current analyst consensus (£150.3m, range £145.4m–£154.0m).

• Interim results for the six months ending 30 June 2025 are scheduled for release on 13 August 2025.

Market and operational context

• US infrastructure demand remains robust, supporting growth in key divisions.

• UK market remains subdued, but operational focus has improved profitability.

• Tariff announcements are being monitored, but no significant impact has been observed; 95% of materials are US-sourced, limiting direct exposure.

• Raw material cost increases have been mitigated by price increases, with no signs of reduced activity or project delays.