UK's Diploma hits record high as resilient aerospace demand lifts 2026 forecast (updated)
18/03/2026 08:31
Adds shares, analyst comment, and details March 18 (Reuters) - British technical products and service distributor Diploma DPLM.L raised its fiscal year 2026 guidance on Wednesday, supported by resilient aerospace demand and continued growth in its North American seals business, sending its shares up to a record high. Shares in the company, which counts Formula 1 and Indy Car among its customers, were up more than 16% at 58.9 pounds. It was the top gainer on the FTSE blue-chip .FTSE index. Here are some key details: The company increased its organic revenue growth forecast to 9% from 6%. It also projected earnings growth exceeding 20%, driven by strong returns on capital. It expects an operating margin of about 25%, up from the earlier 22.5% expectation, implying a 13% increase in analyst consensus operating profit forecasts. "The upgrade looks to have been driven by strong growth across the group, but with Peerless in particular a driver of strong margin accretion, and continued confidence in Windy City Wire," analysts at Jefferies said in a note. The company's Peerless unit supplies high-performance fasteners to the aerospace market, and its Windy City Wire unit supplies low-voltage wire and cable to data centres and digital antenna systems, among others. The company, which serves customers across industries such as aerospace, medical, industrial automation, and construction, said it remains confident in second‑half momentum. Analyst consensus for fiscal 2026 adjusted operating profit is 377 million pounds ($503.75 million), according to a company compiled poll. ($1 = 0.7484 pounds) (Reporting by Nithyashree R B in Bengaluru; Editing by Nivedita Bhattacharjee and Rashmi Aich) ((NithyashreeRB@thomsonreuters.com))