Company Reports

Halma raised its full-year adjusted EBIT margin guidance to 23.5%-24.0% from 22.7% in a brief trading update ahead of its half-year results. Full-year organic revenue guidance was kept unchanged, implying 30% growth in its photonics business. Shares are unchanged intraday Sept. 24.

We've updated our view on Halma, a decentralized holding company comprising approximately 50 businesses.

Halma’s industry-leading profitability is underpinned by acquiring small to medium-size businesses in niche markets with relatively small total addressable markets. Consequently, Halma enjoys a leading market share in many of its product categories and may only have a handful of competitors in other areas. A strong emphasis on research and development, which accounts for 5% of sales, will allow Halma to maintain its market position through a combination of new product releases and product differentiation.

Halma reported blockbuster fiscal 2025/26 results, with organic revenue rising 16% year over year. Halma's photonics business has been a large part of its growth, at 52%. Full-year revenue guidance suggests a deceleration in growth. Shares are trading 14% lower intraday.

Halma’s industry-leading profitability is underpinned by acquiring small to medium-size businesses in niche markets with relatively small total addressable markets. Consequently, Halma enjoys a leading market share in many of the group’s product categories and may only have a handful of competitors in other areas. The group’s strong emphasis on research and development, which accounts for 5% of sales, will allow Halma to maintain its market position through a combination of new product releases and product differentiation.

Halma confirmed its midteens organic revenue growth guidance for fiscal 2026 in a brief trading update. Growth will be primarily driven by its photonics business, which sits within the environmental and analysis segment. The trading update didn’t provide financial figures for the latest quarter.

Halma reported 18% organic revenue growth during its first-half 2026 results. Additional demand from a hyperscaler customer in its Environmental and Analysis segment contributed approximately half of the group's organic growth. Shares are trading 17% higher intraday.

Halma’s industry-leading profitability is underpinned by acquiring small to medium-size businesses in niche markets with relatively small total addressable markets. Consequently, Halma enjoys a leading market share in many of the group’s product categories and may only have a handful of competitors in other areas. The group’s strong emphasis on research and development, which accounts for 5% of sales, will allow Halma to maintain its market position through a combination of new product releases and product differentiation.

Halma reported 14% EPS growth to 94.23 pence per share during its 2025 financial year, comfortably exceeding company-compiled consensus. Upper-single-digit organic revenue growth guidance for fiscal 2026 also surpassed expectations. Shares are trading 5% higher intraday on June 12.

Halma’s industry-leading profitability is underpinned by acquiring small to medium-size businesses in niche markets with relatively small total addressable markets. Consequently, Halma enjoys a leading market share in many of the group’s product categories and may only have a handful of competitors in other areas. The group’s strong emphasis on research and development, which accounts for 5% of sales, will allow Halma to maintain its market position through a combination of new product releases and product differentiation.

Halma posted a brief trading update ahead of its March 31 financial year-end. While no quantitative figures were provided, the company made good progress in the second half, and lifted its full-year guidance. Shares are trading 4% higher intraday.

Halma’s industry-leading profitability is underpinned by acquiring small to medium-size businesses in niche markets with relatively small total addressable markets. Consequently, Halma enjoys a leading market share in many of the group’s product categories and may only have a handful of competitors in other areas. We believe the group’s strong emphasis on research and development, which accounts for 5% of sales, will allow Halma to maintain its market position through a combination of new product releases and product differentiation.

Narrow-moat Halma’s impressive first-half fiscal 2025 result showcases its high-quality, defensive business models with long-term growth drivers. First-half revenue grew 13.0%, of which 11.5% was organic, to GBP 1.1 billion and beat company-compiled consensus by 2%. Adjusted operating profit margin also improved by 70 basis points to 20.7%, which is tracking in line with our full-year estimate of 20.9%. Full-year guidance was unchanged. Shares are trading 8% higher intraday and are fairly valued to our GBX 2,600 fair value estimate, which we maintain.

We maintain our GBX 2,600 for narrow-moat Halma after reviewing its first-half trading update. First-half order intake is up year over year and growing ahead of revenue, which is underpinning "good" organic revenue growth, although no figures were provided. Full-year guidance of good organic revenue growth and adjusted EBIT margin of around 21% was unchanged. We think its EBIT margin guidance could be on the conservative side, given modest margin improvement during the first half. Shares currently screen as fairly valued.

Halma’s industry-leading profitability is underpinned by acquiring small to medium-size businesses in niche markets with relatively small total addressable markets. Consequently, Halma enjoys a leading market share in many of the group’s product categories and may only have a handful of competitors in other areas. We believe the group’s strong emphasis on research and development, which accounts for 5% of sales, will allow Halma to maintain its market position through a combination of new product releases and product differentiation.

Investors have welcomed narrow-moat Halma’s stellar full-year results, which saw adjusted EBIT grow 12%, beating management’s guidance and company-compiled consensus. Halma shares are trading 11% higher at the time of writing. An equal contribution between organic and acquired EBIT growth has helped address investors' concerns over Halma’s ability to further grow inorganically as it becomes a larger organization and also highlights the robustness of its end markets. Fiscal 2024 marks the first year since 2015 that Halma has achieved its organic and acquired profit growth target of 5% each. We’re raising our fair value estimate by 10% to GBX 2,600, reflecting the favorable outlook of its end markets and Halma’s impressive pricing power, allowing it to further expand its operating margins. We view shares as fairly valued.

Narrow-moat Halma’s 2024 trading update was light in quantitative detail, yet confirmed the business is on track to deliver between GBP 376 million and GBP 393.5 million in profit before tax. We’re maintaining our GBP 384 million forecast, which translates into 6% growth for the full year and we also retain our GBX 2,310 fair value estimate. Shares are currently fairly valued.

Halma’s industry-leading profitability is underpinned by acquiring small to medium-size businesses in niche markets with relatively small total addressable markets. Consequently, Halma enjoys a leading market share in many of the group’s product categories and may only have a handful of competitors in other areas. We believe the group’s strong emphasis on research and development, which accounts for 5% of sales, will allow Halma to maintain its market position through a combination of new product releases and product differentiation.

Narrow-moat Halma reported 5% organic revenue growth for the first half of its financial year, which is tracking in line with our expectations. Bolt-on acquisitions added a further 5% to top-line growth, removing any concerns about the acquisition pipeline weakening as the business grows. The safety segment was the standout, benefiting from price increases and supply chain constraints that boosted sales (against a high comparable) and profitability. Management expects full-year profit before tax to be approximately GBP 389 million, broadly in line with our forecasts. The shares are trading 4% higher but remain slightly undervalued relative to our GBX 2,310 fair value estimate, which we maintain.

We are comfortable with our current estimates following narrow-moat Halma’s first-half trading update, which reiterated its full-year guidance of “good” organic revenue growth. While the update was light in quantitative detail, management indicated that order intake is ahead of the prior year, which we anticipate will support mid-single-digit organic revenue growth for the full year, having entered the year with a healthy order book. We maintain our GBX 2,310 fair value estimate and view shares as fairly valued.