**Summary of Hill & Smith PLC Half-Year Results (H1 2025)**
**Financial Performance Highlights**
**Revenue Growth** Revenue increased by 2% to £431.6 million (2024: £422.7 million), with a 4% rise on a constant currency basis, driven by strong performances in US Engineered Solutions and Galvanizing Services.
**Operating Profit** Underlying operating profit rose by 7% to £73.5 million (2024: £68.4 million), with an 11% increase on a constant currency basis. Operating margin expanded to 17.0% (2024: 16.2%).
**Profit Before Tax** Underlying profit before tax grew by 9% to £69.0 million (2024: £63.2 million).
**Earnings Per Share (EPS)** EPS increased by 10% to 63.9p (2024: 58.3p).
**Dividend** Interim dividend rose by 9% to 18.0p per share (2024: 16.5p).
**Operational Highlights**
**US Engineered Solutions** Delivered strong revenue (+10% constant currency) and profit growth (+13% constant currency), supported by robust infrastructure demand and record order books.
**UK & India Engineered Solutions** Faced challenging UK market conditions, particularly in road infrastructure, but profitability improved due to operational efficiencies.
**Galvanizing Services** Achieved record performance with 6% revenue growth and 4% profit growth on a constant currency basis, driven by strong US and UK demand.
**Strategic Initiatives**
**Portfolio Evolution** Divested two non-core, loss-making businesses in Q1 and actively pursuing bolt-on acquisitions to enhance growth in US platform businesses.
**Share Buyback** Announced a £100 million share buyback over the next 18 months, reflecting strong cash generation and balance sheet strength.
**Sustainability** Progressed on carbon reduction targets, with all electricity usage expected to be from renewable contracts by 2026.
**Financial Position**
**Cash Generation** Strong cash conversion of 85% (2024: 83%) and return on invested capital (ROIC) of 25.7% (2024: 22.5%).
**Net Debt** Reduced to £55.3 million (31 December 2024: £96.9 million), with covenant leverage at 0.1 times, providing significant capital allocation flexibility.
**Outlook**
**Full-Year Expectations** Underlying operating profit expected to be in line with market expectations of £150.4 million.
**Medium-Term Growth** Confidence in continued growth driven by strong positions in structurally growing infrastructure and built environment markets, particularly in the US.
**CEO Commentary (Rutger Helbing)**
Highlighted record performance driven by US businesses and improved UK profitability.
Emphasized strong cash flow, minimal leverage, and strategic focus on organic growth, M&A, and shareholder returns.
Confirmed commitment to sustainability and talent development as key pillars of long-term strategy.
**Key Announcements**
£100 million share buyback program.
Interim dividend increase to 18.0p per share.
Continued focus on M&A and organic growth in priority markets.
**Conclusion**
Hill & Smith PLC delivered a robust H1 2025 performance, underpinned by strong US demand and strategic portfolio management. The company remains well-positioned for medium-term growth, supported by a strong balance sheet, active M&A pipeline, and commitment to sustainability and shareholder returns.