UK's Hill & Smith posts FY25 revenue marginally above expectations

Hill and Smith

11/03/2026 07:13

Overview

UK infrastructure solutions provider's FY25 revenue slightly beat analyst expectations

Underlying operating profit and adjusted pretax profit for FY25 beat analyst expectations

Company agreed two acquisitions and continued £100 mln share buyback, citing strong US growth

Outlook

Hill & Smith expects strong US trading momentum to continue in 2026

Company remains cautious about UK market recovery and anticipates lower project activity in 2026

Company anticipates slightly increased second half weighting in Group performance for 2026

Result Drivers

US GROWTH - Strong demand and momentum in US platform businesses, particularly in infrastructure, drove group revenue and profit

GALVANIZING SERVICES - Record performance in US galvanizing business, with 13% organic revenue and volume growth, supported group results

UK WEAKNESS - Challenging UK market backdrop led to lower revenue and profit in UK & India Engineered Solutions segment

Company press release: ID:nRSK1244Wa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Slight Beat*
GBP 868.80 mln
GBP 868.60 mln (7 Analysts)
FY Adjusted Operating Profit
Beat
GBP 151.30 mln
GBP 148.60 mln (6 Analysts)
FY Adjusted Pretax Profit
Beat
GBP 142.50 mln
GBP 138.79 mln (7 Analysts)
FY Adjusted Operating Margin
17.40%
FY Dividend
GBP 0.53
FY Operating Margin
13.80%
FY Operating Profit
GBP 120.10 mln
FY Pretax Profit
GBP 111.30 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the iron & steel peer group is "buy"

Wall Street's median 12-month price target for Hill & Smith PLC is GBp2,577.50, about 14.8% above its March 10 closing price of GBp2,245.00

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)