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Highlights

  • HLMA FY2025 revenue up 11% YoY, with organic growth of 9% YoY; adjusted EBIT rises 15% YoY.
  • The company’s dividend increased by 7% YoY, marking 46 consecutive years of annual dividend growth.
  • Halma expects upper single-digit organic revenue growth and a modest margin expansion in FY2026.

Halma plc (LSE:HLMA), the UK-based group of safety, environmental, and healthcare technology companies, reported its financial results for the year ended 31 March 2025, delivering record revenue and profit growth across all operating sectors and geographies.

The company’s total revenue increased by 11% YoY, with organic growth contributing 9% YoY. Adjusted earnings before interest and tax (EBIT) rose by 15% YoY, including 13% YoY organic growth, with the adjusted EBIT margin improving by 80 basis points to 21.6% YoY. Statutory profit before interest and taxation rose by 12% YoY.

The company reported growth in each of its business sectors. The Safety division posted revenue growth of 9.5% YoY and adjusted profit growth of 13.7% YoY, with consistent performance across subsectors and regions. The Environmental & Analysis segment led the group with 18% YoY revenue growth, largely driven by strong photonics demand, and a 25.4% YoY increase in adjusted profit. The Healthcare segment experienced modest revenue growth of 3.2% YoY, with a second-half recovery supporting a 4% YoY rise in adjusted profit.

Halma saw revenue growth across all regions, including double-digit increases in the United States and Asia Pacific. The return on total invested capital (ROTIC) increased to 15.0% YoY, up from 14.4% YoY the previous year, and above the company’s long-term target of 12% YoY and its weighted average cost of capital of 9.8% YoY.

Cash conversion rate of the company stood at 112% YoY, significantly above the 90% target. Research and development spending grew to GBP 108.4 million, equivalent to 4.8% YoY of revenue. Halma completed seven acquisitions during the year, with a combined maximum consideration of GBP 157 million, and reported a healthy pipeline of further acquisition opportunities. Net debt to EBITDA fell to 0.97x, compared to 1.35x in the prior year, remaining well within the company's target range.

The Board has proposed a final dividend of 14.12 pence per share, an increase from 13.20 pence per share in FY2024. With the previously paid interim dividend of 9.00 pence, the total dividend for FY2025 is 23.12 pence per share, up 7% YoY from the previous year. The final dividend is subject to shareholder approval at the Annual General Meeting on 24 July 2025 and is scheduled to be paid on 15 August 2025 to shareholders on the register as of 11 July 2025.

Halma also confirmed the continuation of its Dividend Reinvestment Plan (DRIP), allowing shareholders to elect to reinvest their dividend proceeds in company shares. Election forms must be submitted by 25 July 2025.

Looking ahead to FY2026, Halma has started the financial year with a positive order book and order intake ahead of both revenue and the prior year. The company expects organic constant currency revenue growth in the upper single-digit percentage range, supported by anticipated continued momentum in the photonics segment of the Environmental & Analysis sector. Adjusted EBIT margins are forecast to be modestly above the mid-point of the 19–23% target range.

Halma shares were trading 7.88% higher at GBX 3,258.00 as of 12 June 2025.