UK's Diploma H1 revenue rises 17%, lifts FY26 outlook

Diploma

19/05/2026 07:09

Overview

UK value-add solutions group's H1 revenue rose 17% yr/yr, organic growth reached 15%

Adjusted EPS for H1 climbed 36% yr/yr, with operating margin up 300bps

Company completed 7 acquisitions since Q1 update, upgraded FY26 guidance for organic growth

Outlook

Diploma raises FY26 organic revenue growth guidance to 12%, up from 9%

Company expects acquisitions to add 6% to FY26 reported growth, up from 3%

Diploma maintains FY26 operating margin guidance at around 25%

Result Drivers

CONTROLS SEGMENT - 26% organic growth in Controls, driven by favourable market conditions and strong execution, with notable contributions from IS Group, Clarendon, Windy City Wire, and Peerless

ACQUISITIONS - Recent acquisitions contributed to growth, with 7 deals since Q1 update and 15 in the last twelve months, adding scale and new capabilities

DIVERSIFIED END MARKETS - Exposure to structurally growing sectors such as aerospace, defence, datacentres, energy, and healthcare supported performance despite uncertain environment

Company press release: ID:nRSS8014Ea

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
GBP 851.10 mln
H1 Adjusted Operating Margin
24.50%
H1 Adjusted Operating Profit
GBP 208.90 mln
H1 Operating Profit
GBP 165.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for Diploma PLC is GBp6,800.00, about 2.6% above its May 18 closing price of GBp6,625.00

The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 27 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)