Hill & Smith PLC (LON:HILS), a leading provider of solutions that enhance the resilience of vital infrastructure and the built environment, has announced its unaudited results for the six months ended 30 June 2026. As previously announced, the Group has adopted the US dollar for reporting in 2026 and throughout this report the comparatives have been restated accordingly.
Financial Results
| Underlying* | Change | Statutory | ||||||
| 30 June1B2026 | 30 June 2025 | Reported % | Constant Currency % | OCC ^ % | 30 June7B2026 | 30 June 2025 | Change % | |
| Revenue | $606.7m | $561.1m | +8% | +7% | +5% | $606.7m | $561.1m | +8% |
| Operating profit | $102.9m | $95.5m | +8% | +7% | +3% | $76.5m | $88.3m | -13% |
| Operating margin | 17.0% | 17.0% | – | 12.6% | 15.7% | -310bps | ||
| Profit before tax | $96.1m | $89.6m | +7% | $69.2m | $82.4m | -16% | ||
| Earnings per share | 90.6c | 82.9c | +9% | 60.2c | 76.3c | -21% | ||
| Dividend per share | 25.0c | 23.4c | +7% | 25.0c | 23.4c | +7% | ||
Highlights:
· Strong trading performance
o Group organic constant currency (OCC) revenue growth of 5% driven by robust demand for infrastructure solutions in the US, partially offset by weaker performance in our UK Engineered Solutions businesses
o US businesses delivered 14% OCC revenue growth, supported by strong demand across both Engineered Solutions and Galvanizing
o Revenue from higher-growth priority end markets increased to 39% of Group revenue (FY25: 34%), reflecting growth in power transmission & distribution and data centre-related markets
o Underlying operating margin of 17.0% (H1 25: 17.0%), with further margin expansion in the US offset by lower margins in UK & India Engineered Solutions
· Disciplined portfolio management and capital allocation
o Organic growth projects in US transmission & distribution and galvanizing on track, with capacity expected to come online from the end of 2026
o Freeberg and Hentech acquisitions performing well; particularly strong momentum at Freeberg where the new factory commissioning is well underway
o Active and growing pipeline of further attractive M&A opportunities
o UK portfolio actions taken, including the disposal of our permanent steel road barrier business in May 2026, reducing exposure to UK roads, as well as cost reductions in other portfolio businesses
· Strong balance sheet and returns
o ROIC increased to 26.7% (H1 2025: 25.8%), reflecting good growth in our larger US Engineered Solutions businesses and well above the Group’s 22%+ target
o Covenant leverage remains low at 0.4 times, providing significant capital allocation flexibility
o Interim dividend of 25.0c (2025: 23.4c), an increase of 7%
o Continued execution of £100m share buyback programme with £58.6m completed as at 10 August 2026
· Full year expectations raised
o Given the strong first half performance, and with sustained momentum in our US businesses, underlying operating profit for FY26 is now expected to be modestly ahead of our previous expectations† with a small FY margin progression compared to the 2025 year
o Continued confidence in the medium-term growth outlook, reflecting the Group’s strong positions in structurally high growth infrastructure and built environment end markets.
Rutger Helbing, CEO, said:
“This has been another period of strong progress for Hill & Smith, led by double-digit organic growth in the US and continued strong demand across our infrastructure end markets. Our recent acquisitions of Freeberg and Hentech are performing well, and the on-track commissioning of Freeberg’s new Arizona facility further enhances our capability in a key strategic market.
“While UK trading conditions remain challenging as expected, we are taking decisive portfolio and operational actions to improve resilience and margins over time.
“We remain in a strong financial position, with disciplined capital allocation enabling us to invest for organic growth, pursue attractive M&A opportunities, and continue to return capital to shareholders whilst maintaining significant financial flexibility.
“Overall, we are making good strategic progress, and we are well positioned to continue delivering against our medium-term financial framework. Following the strong first half and with sustained US momentum we now expect FY26 underlying operating profit to be modestly ahead of our previous expectations.”
† The Group’s AGM statement released on 21 May 2026 indicated underlying operating profit for the 2026 year was expected to be around $212m.
