UK's Diploma lifts 2026 outlook again on robust demand from aerospace, data centre clients
19/05/2026 08:23
May 19 (Reuters) - British technical products and service distributor Diploma DPLM.L on Tuesday raised its fiscal year 2026 forecast for the second time, driven by strong demand from aerospace, defence and data centre customers. Shares of the FTSE 100 company rose as much as 7%. Here are some details on its forecast and first-half results: Diploma now expects organic revenue growth of 12% for the year ending September 30, up from its prior forecast of 9% growth. Operating profit growth is expected to exceed 30%, representing a 6% upgrade to analyst consensus of 428 million pounds. Diploma posted organic revenue growth of 15% and an operating margin of 24.5% in its first half, supported by 26% growth in its Controls division, which provides precision products for technical applications across markets. "Diploma's culture and model give us high conviction in the group's ability to deliver sustainable mid-teens-plus free cash flow per share and earnings growth over the long term," Berenberg analysts said, upgrading their forecasts for Diploma's fiscal 2026 and 2027 results. London-based Diploma serves customers in industries such as aerospace, medical, industrial automation and construction, and counts Formula 1 and IndyCar among its customers. (Reporting by Raechel Thankam Job in Bengaluru; Editing by Janane Venkatraman) ((RaechelThankam.Job@thomsonreuters.com;))