REG - Diploma PLC - Preliminary Results

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RNS Number : 8832H  Diploma PLC  18 November 2025

  10-11 CHARTERHOUSE SQUARE, LONDON EC1M 6EE

                       TELEPHONE: +44 (0)20 7549 5700

 
 18 November 2025

 PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

 Very strong results - ahead of expectations. Great momentum

                             FY25        FY24        Change
 Revenue                      £1,524.5m   £1,363.4m   +12%
 Organic revenue growth       11%         6%
 Adjusted operating profit    £342.7m     £285.0m     +20%
 Adjusted operating margin    22.5%       20.9%       +160bps
 Statutory operating profit   £283.7m     £207.4m     +37%
 Free cash flow               £247.2m     £197.9m     +25%
 Free cash flow conversion    105%        101%
 Adjusted earnings per share  176.0p      145.8p      +21%
 Basic earnings per share     137.9p      96.5p       +43%
 Leverage                     0.8x        1.3x
 Total dividend per share     62.3p       59.3p       +5%
 ROATCE(1)                    20.9%       19.1%       +180bps

 

 All alternative performance measures are defined in note 15 to the Condensed
 Consolidated Financial Statements

 (1) Return on adjusted trading capital employed as defined in note 15

●    Very strong organic revenue growth of 11%, ahead of expectations. Volume-led
   growth in all three Sectors. Reported growth of 12%, including +3% net
   acquisitions partially offset by FX
 ●    Differentiated value-add model and strong execution: Margin up 160 basis
   points to 22.5%, ahead of expectations
 ●    Strong earnings growth reflects ambition, building on long-term track record:
   FY25 EPS growth of 21%
 ●    Disciplined returns: 20.9%, up 180 basis points
 ●    Acquisition momentum: Six deals since start of Q4 for £92m at average 8x
   multiple. Total of seven since start of FY25 in attractive markets like
   aerospace, defence and IVD. Healthy acquisition pipeline
 ●    Financial firepower: Strong cash generation, modest leverage at 0.8x
 ●    Quality and diversity of portfolio: attractive end markets driving structural
   growth
 ●    Positive start to new year. FY26 guidance: organic revenue growth of 6%,
   significantly weighted to H1, and operating margin of c.22.5%
 ●    Sustainable Quality Compounding

Commenting, Johnny Thomson, Diploma's Chief Executive said:

"It's been another great year. I'd like to thank my brilliant Diploma
 colleagues for their skill, dedication and passion. They make it happen.

 "These strong results demonstrate how we balance ambitious earnings growth and
 disciplined returns - in good times and bad - to build on our long track
 record of sustainable quality compounding.

 "We have great momentum into the new year. The quality and diversity of our
 portfolio positions us well for structural organic growth. Our acquisition
 pipeline is healthy. And the team is in great shape. We're just getting
 started."
 Sector performance

●    Controls +20% organic growth: Strong execution and attractive end market
  exposures. Double-digit growth in Windy City Wire and International Controls.
  Peerless exceeded expectations
 ●    Seals +2% organic growth: Sequential improvement in H2. North American Seals
  strong, International Seals recovered well in Europe while UK remains
  challenging. Well-positioned for growth
 ●    Life Sciences +6% organic growth: Strong growth in a tough healthcare market,
  driven by share gains across medtech and in vitro diagnostics (IVD) markets in
  Canada and Australia

   FY26 guidance

●    Organic revenue growth of 6% - with growth from all three Sectors
 ●    Significantly H1 weighted performance - reflecting very strong H2 comparators
 ●    Acquisitions announced to date add +2% to reported growth - this will increase
  if further acquisitions are made
 ●    Maintaining operating margin at c.22.5%

   FY26 guidance

●    Organic revenue growth of 6% - with growth from all three Sectors
 ●    Significantly H1 weighted performance - reflecting very strong H2 comparators
 ●    Acquisitions announced to date add +2% to reported growth - this will increase
   if further acquisitions are made
 ●    Maintaining operating margin at c.22.5%

 
 18 November 2025

 PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

 Very strong results - ahead of expectations. Great momentum

                             FY25        FY24        Change
 Revenue                      £1,524.5m   £1,363.4m   +12%
 Organic revenue growth       11%         6%
 Adjusted operating profit    £342.7m     £285.0m     +20%
 Adjusted operating margin    22.5%       20.9%       +160bps
 Statutory operating profit   £283.7m     £207.4m     +37%
 Free cash flow               £247.2m     £197.9m     +25%
 Free cash flow conversion    105%        101%
 Adjusted earnings per share  176.0p      145.8p      +21%
 Basic earnings per share     137.9p      96.5p       +43%
 Leverage                     0.8x        1.3x
 Total dividend per share     62.3p       59.3p       +5%
 ROATCE(1)                    20.9%       19.1%       +180bps

 

 All alternative performance measures are defined in note 15 to the Condensed
 Consolidated Financial Statements

 (1) Return on adjusted trading capital employed as defined in note 15

●    Very strong organic revenue growth of 11%, ahead of expectations. Volume-led
    growth in all three Sectors. Reported growth of 12%, including +3% net
    acquisitions partially offset by FX
 ●    Differentiated value-add model and strong execution: Margin up 160 basis
    points to 22.5%, ahead of expectations
 ●    Strong earnings growth reflects ambition, building on long-term track record:
    FY25 EPS growth of 21%
 ●    Disciplined returns: 20.9%, up 180 basis points
 ●    Acquisition momentum: Six deals since start of Q4 for £92m at average 8x
    multiple. Total of seven since start of FY25 in attractive markets like
    aerospace, defence and IVD. Healthy acquisition pipeline
 ●    Financial firepower: Strong cash generation, modest leverage at 0.8x
 ●    Quality and diversity of portfolio: attractive end markets driving structural
    growth
 ●    Positive start to new year. FY26 guidance: organic revenue growth of 6%,
    significantly weighted to H1, and operating margin of c.22.5%
 ●    Sustainable Quality Compounding

Commenting, Johnny Thomson, Diploma's Chief Executive said:

"It's been another great year. I'd like to thank my brilliant Diploma
 colleagues for their skill, dedication and passion. They make it happen.

 "These strong results demonstrate how we balance ambitious earnings growth and
 disciplined returns - in good times and bad - to build on our long track
 record of sustainable quality compounding.

 "We have great momentum into the new year. The quality and diversity of our
 portfolio positions us well for structural organic growth. Our acquisition
 pipeline is healthy. And the team is in great shape. We're just getting
 started."
 Sector performance

●    Controls +20% organic growth: Strong execution and attractive end market
   exposures. Double-digit growth in Windy City Wire and International Controls.
   Peerless exceeded expectations
 ●    Seals +2% organic growth: Sequential improvement in H2. North American Seals
   strong, International Seals recovered well in Europe while UK remains
   challenging. Well-positioned for growth
 ●    Life Sciences +6% organic growth: Strong growth in a tough healthcare market,
   driven by share gains across medtech and in vitro diagnostics (IVD) markets in
   Canada and Australia

   FY26 guidance

●    Organic revenue growth of 6% - with growth from all three Sectors
 ●    Significantly H1 weighted performance - reflecting very strong H2 comparators
 ●    Acquisitions announced to date add +2% to reported growth - this will increase
   if further acquisitions are made
 ●    Maintaining operating margin at c.22.5%

   FY26 guidance

●    Organic revenue growth of 6% - with growth from all three Sectors
 ●    Significantly H1 weighted performance - reflecting very strong H2 comparators
 ●    Acquisitions announced to date add +2% to reported growth - this will increase
    if further acquisitions are made
 ●    Maintaining operating margin at c.22.5%

 

Preliminary results

Diploma's preliminary results for the year ended 30 September 2025 have been
 submitted in full unedited text to the Financial Conduct Authority's National
 Storage Mechanism and will be available shortly for inspection at National
 Storage Mechanism | FCA
 (https://data.fca.org.uk/#/nsm/nationalstoragemechanism) . The results are
 also available
 at http://www.rns-pdf.londonstockexchange.com/rns/8832H_1-2025-11-17.pdf
 (http://www.rns-pdf.londonstockexchange.com/rns/8832H_1-2025-11-17.pdf) and
 the corporate website: www.diplomaplc.com.

 Dividends

 For the financial year ended 30 September 2025 (FY25), the Board has
 recommended a final dividend of 44.1p per share (FY24: 42.0p) making the
 proposed full year dividend 62.3p (FY24: 59.3p), up 5%, in line with the
 Board's dividend policy.

 The final dividend for FY25 is subject to approval by shareholders at the
 Annual General Meeting on 14 January 2026 and, if approved, will be paid on 30
 January 2026 to shareholders on the register at 16 January 2026. Shares will
 trade ex-dividend from 15 January 2026.

 

 Notes:

 1.        Diploma PLC uses alternative performance measures as key
 financial indicators to assess the underlying performance of the Group. These
 include organic revenue growth, adjusted operating profit/adjusted operating
 margin, adjusted earnings per share, free cash flow/free cash flow conversion,
 leverage and ROATCE. Definitions of these metrics are set out in note 15 to
 the Condensed Consolidated Financial Statements in this Announcement.

 2.        Certain statements contained in this Announcement constitute
 forward-looking statements. Such forward-looking statements involve risks,
 uncertainties and other factors which may cause the actual results,
 performance or achievements of Diploma PLC, or industry results, to be
 materially different from any future results, performance or achievements
 expressed or implied by such statements. Such risks, uncertainties and other
 factors include, among others, exchange rates, general economic conditions and
 the business environment.

 A presentation of the results to analysts and investors will be held at 09:00
 GMT. This will be streamed live via webcast and audio conference call and
 webcast.

 Register your attendance for the webcast at:  https://brrmedia.news/DPLM_FY25
 (https://brrmedia.news/DPLM_FY25)

 Conference call dial in details:

●    Dial in: UK-Wide: +44 (0) 33 0551 0200 / UK Toll Free: 0808 109 0700
 ●    Password: Diploma

 

A recording of the presentation will be available after the event on our
 website: https://www.diplomaplc.com/investors/financial-presentations/
 (https://www.diplomaplc.com/investors/financial-presentations/)

 

For further information please contact:

 Diploma PLC -                              +44 (0)20 7549 5700
 Johnny Thomson, Chief Executive Officer
 Wilson Ng, Acting Chief Financial Officer
 Holly Gillis, Head of Investor Relations

 Teneo -                                    +44 (0)20 7353 4200
 Martin Robinson
 Camilla Cunningham

 

  NOTE TO EDITORS:

 Diploma PLC is a group of specialist businesses that provide critical products
 and value-added services to customers across a wide range of markets - where
 quality, reliability and expertise matter most.

 We help our customers run smarter, safer and stronger. We provide the bolts
 that hold planes and race cars together, design the seals that make wind
 turbines work, and help surgeons find the best solutions to save lives.

 We employ c.3,400 colleagues across the Group. Our businesses primarily
 operate across the US, Canada, the UK, Europe and Australia.

 Diploma delivers sustainable quality compounding. Over the last seven years,
 the Group has grown adjusted earnings per share (EPS) at an average of c.18%
 p.a. through a combination of organic growth and acquisitions.

 Diploma is a member of the FTSE 100.

 Further information on Diploma PLC can be found at www.diplomaplc.com
 (http://www.diplomaplc.com/)

 The person responsible for releasing this Announcement is Anna Lawrence,
 Company Secretary.

 LEI: 2138008OGI7VYG8FGR19

 
18 November 2025

PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

 

Very strong results - ahead of expectations. Great momentum

 

 

                              FY25        FY24        Change
 Revenue                      £1,524.5m   £1,363.4m   +12%
 Organic revenue growth       11%         6%
 Adjusted operating profit    £342.7m     £285.0m     +20%
 Adjusted operating margin    22.5%       20.9%       +160bps
 Statutory operating profit   £283.7m     £207.4m     +37%
 Free cash flow               £247.2m     £197.9m     +25%
 Free cash flow conversion    105%        101%
 Adjusted earnings per share  176.0p      145.8p      +21%
 Basic earnings per share     137.9p      96.5p       +43%
 Leverage                     0.8x        1.3x
 Total dividend per share     62.3p       59.3p       +5%
 ROATCE(1)                    20.9%       19.1%       +180bps

 

All alternative performance measures are defined in note 15 to the Condensed
Consolidated Financial Statements

(1) Return on adjusted trading capital employed as defined in note 15

 ●    Very strong organic revenue growth of 11%, ahead of expectations. Volume-led
      growth in all three Sectors. Reported growth of 12%, including +3% net
      acquisitions partially offset by FX
 ●    Differentiated value-add model and strong execution: Margin up 160 basis
      points to 22.5%, ahead of expectations
 ●    Strong earnings growth reflects ambition, building on long-term track record:
      FY25 EPS growth of 21%
 ●    Disciplined returns: 20.9%, up 180 basis points
 ●    Acquisition momentum: Six deals since start of Q4 for £92m at average 8x
      multiple. Total of seven since start of FY25 in attractive markets like
      aerospace, defence and IVD. Healthy acquisition pipeline
 ●    Financial firepower: Strong cash generation, modest leverage at 0.8x
 ●    Quality and diversity of portfolio: attractive end markets driving structural
      growth
 ●    Positive start to new year. FY26 guidance: organic revenue growth of 6%,
      significantly weighted to H1, and operating margin of c.22.5%
 ●    Sustainable Quality Compounding

Commenting, Johnny Thomson, Diploma's Chief Executive said:

 "It's been another great year. I'd like to thank my brilliant Diploma
 colleagues for their skill, dedication and passion. They make it happen.

 "These strong results demonstrate how we balance ambitious earnings growth and
 disciplined returns - in good times and bad - to build on our long track
 record of sustainable quality compounding.

 "We have great momentum into the new year. The quality and diversity of our
 portfolio positions us well for structural organic growth. Our acquisition
 pipeline is healthy. And the team is in great shape. We're just getting
 started."
 Sector performance

●    Controls +20% organic growth: Strong execution and attractive end market
    exposures. Double-digit growth in Windy City Wire and International Controls.
    Peerless exceeded expectations
 ●    Seals +2% organic growth: Sequential improvement in H2. North American Seals
    strong, International Seals recovered well in Europe while UK remains
    challenging. Well-positioned for growth
 ●    Life Sciences +6% organic growth: Strong growth in a tough healthcare market,
    driven by share gains across medtech and in vitro diagnostics (IVD) markets in
    Canada and Australia

   FY26 guidance

●    Organic revenue growth of 6% - with growth from all three Sectors
 ●    Significantly H1 weighted performance - reflecting very strong H2 comparators
 ●    Acquisitions announced to date add +2% to reported growth - this will increase
    if further acquisitions are made
 ●    Maintaining operating margin at c.22.5%

  FY26 guidance

 ●    Organic revenue growth of 6% - with growth from all three Sectors
 ●    Significantly H1 weighted performance - reflecting very strong H2 comparators
 ●    Acquisitions announced to date add +2% to reported growth - this will increase
      if further acquisitions are made
 ●    Maintaining operating margin at c.22.5%

 

 Preliminary results

Diploma's preliminary results for the year ended 30 September 2025 have been
 submitted in full unedited text to the Financial Conduct Authority's National
 Storage Mechanism and will be available shortly for inspection at National
 Storage Mechanism | FCA
 (https://data.fca.org.uk/#/nsm/nationalstoragemechanism) . The results are
 also available
 at http://www.rns-pdf.londonstockexchange.com/rns/8832H_1-2025-11-17.pdf
 (http://www.rns-pdf.londonstockexchange.com/rns/8832H_1-2025-11-17.pdf) and
 the corporate website: www.diplomaplc.com.

 Dividends

 For the financial year ended 30 September 2025 (FY25), the Board has
 recommended a final dividend of 44.1p per share (FY24: 42.0p) making the
 proposed full year dividend 62.3p (FY24: 59.3p), up 5%, in line with the
 Board's dividend policy.

 The final dividend for FY25 is subject to approval by shareholders at the
 Annual General Meeting on 14 January 2026 and, if approved, will be paid on 30
 January 2026 to shareholders on the register at 16 January 2026. Shares will
 trade ex-dividend from 15 January 2026.

 

Notes:

 

1.        Diploma PLC uses alternative performance measures as key
financial indicators to assess the underlying performance of the Group. These
include organic revenue growth, adjusted operating profit/adjusted operating
margin, adjusted earnings per share, free cash flow/free cash flow conversion,
leverage and ROATCE. Definitions of these metrics are set out in note 15 to
the Condensed Consolidated Financial Statements in this Announcement.

 

2.        Certain statements contained in this Announcement constitute
forward-looking statements. Such forward-looking statements involve risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Diploma PLC, or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such statements. Such risks, uncertainties and other
factors include, among others, exchange rates, general economic conditions and
the business environment.

A presentation of the results to analysts and investors will be held at 09:00
GMT. This will be streamed live via webcast and audio conference call and
webcast.

Register your attendance for the webcast at:  https://brrmedia.news/DPLM_FY25
(https://brrmedia.news/DPLM_FY25)

Conference call dial in details:

 ●    Dial in: UK-Wide: +44 (0) 33 0551 0200 / UK Toll Free: 0808 109 0700
 ●    Password: Diploma

 

A recording of the presentation will be available after the event on our
website: https://www.diplomaplc.com/investors/financial-presentations/
(https://www.diplomaplc.com/investors/financial-presentations/)

 

 

 For further information please contact:

 Diploma PLC -                              +44 (0)20 7549 5700
 Johnny Thomson, Chief Executive Officer
 Wilson Ng, Acting Chief Financial Officer
 Holly Gillis, Head of Investor Relations

 Teneo -                                    +44 (0)20 7353 4200
 Martin Robinson
 Camilla Cunningham

 

 NOTE TO EDITORS:

 

Diploma PLC is a group of specialist businesses that provide critical products
and value-added services to customers across a wide range of markets - where
quality, reliability and expertise matter most.

We help our customers run smarter, safer and stronger. We provide the bolts
that hold planes and race cars together, design the seals that make wind
turbines work, and help surgeons find the best solutions to save lives.

 

We employ c.3,400 colleagues across the Group. Our businesses primarily
operate across the US, Canada, the UK, Europe and Australia.

 

Diploma delivers sustainable quality compounding. Over the last seven years,
the Group has grown adjusted earnings per share (EPS) at an average of c.18%
p.a. through a combination of organic growth and acquisitions.

 

Diploma is a member of the FTSE 100.

 

Further information on Diploma PLC can be found at www.diplomaplc.com
(http://www.diplomaplc.com/)

 

The person responsible for releasing this Announcement is Anna Lawrence,
Company Secretary.

LEI: 2138008OGI7VYG8FGR19

 

 

 

 

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