Halma plc (LON:HLMA), the global group of life-saving technology companies focused on growing a safer, cleaner, healthier future for everyone, every day, has released its scheduled trading update ahead of its half year end on 30 September 2025.
Strong progress in the first half; full year revenue growth guidance increased
We have made strong progress in the first half of this financial year, against a backdrop of varied market conditions and a challenging economic and geopolitical environment. Our continued delivery of strong, compounding growth and returns reflects the benefits of our Sustainable Growth Model, including our participation in diverse markets whose growth is supported by long-term drivers, the exceptional talent in our companies, and the autonomy we give our companies and people to respond rapidly to changing market conditions.
Based on our progress in the year to date and our current expectations for the remainder of the year, we now expect to deliver low double digit percentage organic constant currency1 revenue growth in this financial year. This compares to our previous guidance of upper single digit percentage organic constant currency1 revenue growth, with the increase being primarily driven by stronger-than-expected growth in photonics within the Environmental & Analysis Sector.
This growth is supported by order intake which remains ahead of both revenue in the year to date and the comparable period last year.
There is no change to our Adjusted EBIT margin2 guidance, which we continue to expect to be modestly above the middle of our target range of 19-23% in this financial year.
Our strong underlying cash generation and robust financial position is supporting continued strategic investment in future organic growth, as well as providing capacity to fund acquisitions. In the first half of the year, we expect our cash conversion to reflect incremental growth investment in working capital as well as capital investments across the Group. We expect full year cash conversion to be more in line with our KPI of 90%.
The appreciation of Sterling is having a negative currency translation effect on the group’s results; we expect this effect to continue in the second half of the year3.
Further M&A progress; healthy acquisition pipeline
We have completed two acquisitions in the year to date. On 25 August, we acquired Brownline, a provider of advanced gyroscopic locating systems used by Horizontal Directional Drilling (HDD) contractors in trenchless underground drilling, for €150m (approximately £129m)4 as a standalone company for our Environmental & Analysis Sector. On 3 April, we acquired Nu Perspectives, a cryogenic therapy device engineering company, as a bolt-on for our Healthcare Sector company, Keeler, for £1.5m4. We continue to have a healthy acquisition pipeline.
We actively manage our portfolio of global businesses to ensure that it delivers strong growth and returns and is aligned with our purpose of growing a safer, cleaner, healthier future for everyone, every day. As a result, we made one disposal in the period, of AAI, for approximately £10m, net of disposal costs. In addition, our Environmental & Analysis Sector company Nuvonic entered into a licence, manufacturing and distribution agreement with their long-standing partner Fluidsmile in a number of Asian markets. Further details of these transactions are given in note 5 to this update.
Half Year Results
The Group’s results for the half year ending 30 September 2025 will be released on 20 November 2025.
Notes:
1. Organic constant currency measures exclude the effect of movements in foreign exchange rates on the translation of revenue and profit into Sterling, as well as acquisitions in the year following completion and disposals.
2. Adjusted EBIT is earnings before interest and tax, and before amortisation and impairment of acquired intangible assets, acquisition items, and profit or loss on disposal of businesses. Adjusted EBIT margin is defined as Adjusted EBIT expressed as a percentage of revenue. Our guidance excludes the one-off benefit from the Nuvonic transaction which was completed in the half year (see note 5 below).
3. Sterling has strengthened in the year relative to many currencies, including the US Dollar and Euro and the currency translation impact on the Group’s results for the financial year ended 31 March 2026 is expected to be negative. Based on exchange rates of Sterling/US Dollar 1:1.35 and Sterling/Euro 1:1.16, we would expect approximately a £74m negative revenue effect and approximately a £17m negative profit effect in the 2026 financial year, compared to the 2025 financial year.
4. On a cash- and debt-free basis.
5. On 25 July 2025, the group completed the sale of AAI, a designer and manufacturer of smoke, heat, and carbon monoxide detectors and HVAC-mounted duct smoke and carbon monoxide detectors, principally for the US residential market, for a total cash consideration of US$14m (approximately £10m) on a cash- and debt-free basis, net of disposal costs. In the financial year ended 31 March 2025, AAI reported revenue of US$54m (approximately £42m). A loss, which is expected to be approximately £5m, will be recognised in statutory profit on disposal.
On 15 May 2025, Nuvonic, an Environmental & Analysis Sector company, granted Fluidsmile Fluid Tech Ltd (Fluidsmile), a longstanding partner of Nuvonic in China, an exclusive trademark licence and related manufacturing and distribution rights to sell certain Nuvonic products in China and other agreed southeastern Asian markets, for RMB95m (approximately £10m). Nuvonic also acquired a 35% associate investment in Fluidsmile for RMB95m (approximately £10m) on the same date. As a result of these transactions, a one-off gain of £8m will be recognised in Adjusted EBIT2 in the current financial year.
6. This Trading Update is based upon unaudited management accounts information. Forward-looking statements have been made by the Directors in good faith using information available up until the date that they approved this statement. Forward-looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks.
7. A copy of this announcement, together with other information about Halma, may be viewed on our website www.halma.com.
