**Summary of Hill & Smith PLCs Full Year Results for 2025**
**Financial Performance**
**Revenue** £868.8 million, up 2% from £855.1 million in 2024, with a 3% increase on an organic constant currency (OCC) basis.
**Operating Profit:** £151.3 millionup 5% from £143.5 million in 2024with a 6% OCC growth.
**Profit Before Tax** £142.5 million, up 7% from £132.6 million in 2024.
**Earnings Per Share (EPS):** 132.2pup 8% from 122.6p in 2024.
**Dividend Per Share:** 53.0pup 8% from 49.0p in 2024.
**Key Highlights**
**Strong US Performance** US businesses delivered excellent growth and margin expansion, contributing significantly to overall results.
**Margin Expansion** Underlying operating margin increased to 17.4% from 16.8% in 2024, driven by improved portfolio mix and strong US performance.
**Cash Generation** Underlying cash conversion of 91%, with a return on invested capital (ROIC) of 26.7%, up from 24.8% in 2024.
**Acquisitions** Agreed to acquire Freeberg Industrial Fabrication Corp. (80% stake for $36m) and Hentech Fabrication Limited (€7.3m), enhancing exposure to high-growth markets.
**Share Buyback** Initiated a £100m share buyback in August 2025, with £32.5m completed as of March 2026.
**Segment Performance**
**US Engineered Solutions** Revenue up 6% OCC, operating margin increased to 18.0%. Strong demand across platform businesses, particularly in transmission & distribution and data centres.
**Galvanizing Services** Revenue up 10% OCC, operating margin increased to 26.0%. Record performance driven by strong US demand and operational improvements.
**UK & India Engineered Solutions** Revenue down 6% OCC, operating profit down 11%. Challenging UK market conditions, with some progress in data centre markets.
**Strategic Progress**
**End Market Focus** Increased exposure to high-growth emerging markets (34% of revenue in 2025, up from 23% in 2024).
**Capital Allocation** Disciplined approach to organic growth, M&A, and shareholder returns. £35m investment planned for US capacity expansion.
**Sustainability** 19% reduction in greenhouse gas emissions, 91% of electricity sourced through green tariffs, and a 9% reduction in Lost Time Incident Rate (LTIR).
**Outlook**
**US** Strong momentum expected to continue in 2026, supported by infrastructure investment and onshoring trends.
**UK** Cautious outlook due to weak market conditions and limited project activity. Measures being taken to strengthen UK operations.
**India** Attractive growth opportunities anticipated.
**Overall** Confident of making further progress in FY26 and beyond, with a slightly increased second-half weighting in 2026.
**Board Updates**
Appointed Chris McLeish as CFO and Gillian Tomlinson as a Non-executive Director.
Announced Nick Anderson as the next Chair, succeeding Alan Giddins in May 2026.
**Reporting Currency Change**
Intends to report financial results in US dollars starting from the six months ending 30 June 2026, reducing foreign exchange volatility.
**Conclusion**
Hill & Smith PLC delivered strong FY25 results, driven by robust US performance and strategic acquisitions. The company is well-positioned for future growth, with a focus on high-growth markets, disciplined capital allocation, and sustainability initiatives. Despite challenges in the UK market, the company remains confident in its ability to make further progress in 2026 and beyond.
| Metric | 2025 (£m) | 2024 (£m) | Change (%) |
|---|---|---|---|
| Revenue | 868.8 | 855.1 | +2% |
| Operating Profit | 151.3 | 143.5 | +5% |
| Profit Before Tax | 142.5 | 132.6 | +7% |
| Earnings Per Share (p) | 132.2 | 122.6 | +8% |
| Dividend Per Share (p) | 53.0 | 49.0 | +8% |
| Net Debt (£m) | 50.8 | 96.9 | -48% |
| Covenant Leverage (times) | 0.1 | 0.3 | -67% |
Note: The above table compares key financials and debt metrics for Hill & Smith PLC between 2024 and 2025. The change percentage is calculated based on the year-on-year difference.
**Key Observations:** * Revenue increased by 2% from £855.1m in 2024 to £868.8m in 2025. * Operating profit grew by 5% from £143.5m in 2024 to £151.3m in 2025. * Profit before tax increased by 7% from £132.6m in 2024 to £142.5m in 2025. * Earnings per share and dividend per share both increased by 8% in 2025 compared to 2024. * Net debt decreased significantly by 48% from £96.9m in 2024 to £50.8m in 2025. * Covenant leverage improved from 0.3 times in 2024 to 0.1 times in 2025, indicating a stronger financial position.