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Highlights

  • Panmure Liberum reaffirms BUY rating on Halma with a target price of AUD 68.82.

  • FY2025 delivered record revenue and profit growth across all sectors and regions.

  • FY2026 outlook targets upper single-digit organic growth with significant photonics demand.

Halma PLC (LSE:HLMA), the global group of life-saving technology companies, has received a BUY rating from Panmure Liberum with a target price of AUD 68.82, reflecting the company’s financial performance and growth outlook. The endorsement likely to follow the company’s annual results for the 12 months ended 31 March 2025, showcasing record revenues, significant profit growth, and continued strategic investment.

Annual Performance Across All Sectors

For the year, Halma reported record revenue growth of 11%, with organic growth of 9%. Adjusted EBIT rose 15% (13% organic), with the EBIT margin improving by 80 basis points to 21.6%. Statutory profit before interest and taxation increased by 12%. The company achieved revenue and profit growth across all three sectors:

  • Safety: Broad-based revenue growth of 9.5% (7.7% organic), with adjusted profit up 13.7% (11.6% organic).

  • Environmental & Analysis: Exceptional performance with revenue up 18% (19% organic), driven by photonics demand; adjusted profit surged 25.4%.

  • Healthcare: Revenue rose 3.2% (0.3% organic), with significant second-half improvement leading to a 4% adjusted profit increase.

Geographic Expansion and Operational Excellence

Halma delivered double-digit revenue growth in the USA and Asia Pacific, alongside gains in other regions. Returns on total invested capital improved to 15%, exceeding both the company’s 12% target and its weighted average cost of capital of 9.8%. The business also demonstrated operational efficiency with a cash conversion rate of 112%, substantially above the 90% benchmark.

The company’s financial discipline was reflected in its balance sheet, with net debt-to-EBITDA reduced to 0.97 times, well below the operational limit of 2 times. Strategic investments continued, including seven acquisitions worth up to £157 million and a £108.4 million investment in R&D to support future growth.

Positive Outlook for FY2026

Looking ahead, Halma has started the new financial year with a order book and intake ahead of last year’s levels. The company anticipates delivering upper single-digit percentage organic constant currency revenue growth in FY2026, driven by sustained momentum in the photonics segment within the Environmental & Analysis sector. Adjusted EBIT margins are expected to remain modestly above the midpoint of the 19–23% target range.

With 46 consecutive years of dividend growth of 5% or more, Halma remains a standout in delivering resilient performance through various market cycles.