Hill & Smith Plc · LSE:HILS
Hill & Smith — H1 2026 Earnings Presentation
30 slides from Hill & Smith's earnings presentation, Jun 30, 2026
Slide 1: Hill & Smith PLC Interim results
Hill & Smith PLC Interim results For the six months ended 30 June 2026
Slide 2: Strong H1 delivery; modest upgrade to FY26 operating profit expectations
Hill & Smith PLC – 2026 Interim Results 2 Strong H1 delivery; modest upgrade to FY26 operating profit expectations Strong trading performance Good strategic progress • 5% OCC revenue growth, driven by robust • US organic growth investments US infrastructure demand progressing well • US businesses de
Slide 3: Operating and Financial Review
Hill & Smith PLC – 2026 Interim Results 3 Operating and Financial Review
Slide 4: H1 2026 results
Hill & Smith PLC – 2026 Interim Results 4 H1 2026 results Strong results led by double-digit US growth Revenue Underlying operating profit * $606.7m +5% OCC $102.9m +3% OCC (H1 2025: $561.1m) (H1 2025: $95.5m) Underlying operating margin * Return on invested capital * 17.0% Unchanged 26.7% +90bps (H
Slide 5: Revenue and profit increasingly weighted towards faster-growth US
Hill & Smith PLC – 2026 Interim Results 5 Revenue and profit increasingly weighted towards faster-growth US US businesses generated 66% of Group revenue and 84% of Group operating profit in H1 Revenue Operating profit By geography 1% 2% HY HY 15% 2% 25 26 2% 32% ▪ US 22% 37% 61% ▪ UK 66% 76% 84% ▪ I
Slide 6: US Engineered Solutions: structural growth accelerating across grid, data centre and infrastructure
Hill & Smith PLC – 2026 Interim Results 6 US Engineered Solutions: structural growth accelerating across electrical grid, data centre and infrastructure markets • Solid demand for composite solutions Constant across a range of end markets; margins H1 2026 H1 2025 Currency OCC slightly lower due to m
Slide 7: Galvanizing Services: double-digit growth and margin expansion
Hill & Smith PLC – 2026 Interim Results 7 Galvanizing Services: double-digit growth and margin expansion US (59% of revenue, +16% OCC) Constant • Record results driven by strong volume H1 2026 H1 2025 Currency OCC growth Revenue ($m) 150.9 133.3 +11% +11% • Good demand from a balanced mix of Operati
Slide 8: UK & India Engineered Solutions: UK improvement actions initiated
Hill & Smith PLC – 2026 Interim Results 8 UK & India Engineered Solutions: UK improvement actions initiated • As expected, lower revenue and profitability reflect challenging UK market conditions and non-repeat of prior year project benefit Constant H1 2026 H1 2025 Currency OCC • Good demand and pro
Slide 9: Cash generation and financial position
Hill & Smith PLC – 2026 Interim Results 9 Cash generation and financial position $m H1 2026 H1 2025 Lower cash conversion reflects short-term working Underlying operating profit 102.9 95.5 capital build in faster-growing US businesses Depreciation and amortisation 21.6 20.9 • 50% underlying cash con
Slide 10: Performance against financial framework
Hill & Smith PLC – 2026 Interim Results 10 Performance against financial framework Organic revenue growth accelerating; continued strong returns Framework H1 26 Organic revenue growth • Accelerating organic revenue growth led by robust US 5-7% 5% infrastructure demand • Total revenue growth supporte
Slide 11: Strategic Update
Hill & Smith PLC – 2026 Interim Results 11 Strategic Update
Slide 12: Strategic actions continue to improve end market mix
Hill & Smith PLC – 2026 Interim Results 12 Strategic actions continue to improve end market mix Progress across all geographies towards higher-growth end markets US UK & India Group (66% of revenue) (34% of revenue) 12% 9% 15% 20% 29% 7% 8% 6% 2% 1% 20% 30% 25% 47% 45% 27% 40% 45% 41% 34% 38% 30% 37
Slide 13: Exciting US power transmission & distribution market growth
Hill & Smith PLC – 2026 Interim Results 13 Exciting US power transmission & distribution market growth US power T&D is expected to benefit from long-term structural growth drivers • Power outages are increasing due to ageing infrastructure and extreme weather – decades of under-investment being addr
Slide 14: Strong positions in niche T&D segments
Hill & Smith PLC – 2026 Interim Results 14 Strong positions in niche T&D segments Good exposure across our US platform businesses Galvanizing / other 8% Group H1 33% T&D revenue $148m 59% V&S Utilities Creative Composites Group • Engineered tapered tubular steel structures and • Custom design compos
Slide 15: V&S Utilities: A major growth driver
Hill & Smith PLC – 2026 Interim Results 15 V&S Utilities: A major growth driver c.15% of Group revenue, expected to grow by low double digits over the medium term Good alignment with operating company framework • Market leader in key operating geographies; proximity of supply to demand is advantageo
Slide 16: US organic growth investments
Hill & Smith PLC – 2026 Interim Results 16 US organic growth investments Delivering additional capacity in faster growing markets The Paterson Group (TPG) V&S Utilities (Waggaman, Louisiana) (Ohio & Oklahoma) • Completed in 2025 at a total cost of c.$10m • c.$10m expansion of Burton, OH site (online
Slide 17: Continued discipline in capital allocation
Hill & Smith PLC – 2026 Interim Results 17 Continued discipline in capital allocation Strong balance sheet and returns provide significant flexibility 1. Organic growth • Capacity expansion in US T&D and galvanizing • Disciplined investment in capital projects, talent progressing well, expected to c
Slide 18: FY26 outlook raised: operating profit modestly ahead of previous expectations
Hill & Smith PLC – 2026 Interim Results 18 FY26 outlook raised: operating profit modestly ahead of previous expectations US • Strong first half and sustained momentum in larger platform businesses • Demand supported by structural investment in infrastructure renewal, grid modernisation, water infras
Slide 19: Appendices
Hill & Smith PLC – 2026 Interim Results 19 Appendices
Slide 20: Our investment case
Hill & Smith PLC – 2026 Interim Results 20 Our investment case Structural growth High and improving underpinned by the need for returns profile infrastructure investment in our core markets delivering superior value for shareholders Disciplined capital Market leadership allocation with a strong trac
Slide 21: Divisional analysis
Hill & Smith PLC – 2026 Interim Results 21 Divisional analysis Constant H1 2026 Organic M&A FX H1 2025 currency OCC US Engineered Solutions Revenue ($m) 311.6 36.6 10.4 - 264.6 +18% +14% Operating profit ($m) 56.5 6.6 2.9 (0.3) 47.3 +20% +14% Operating margin 18.1% 17.9% Galvanizing Services Revenue
Slide 22: 2026 guidance updates
Hill & Smith PLC – 2026 Interim Results 22 2026 guidance updates Key financial modelling assumptions (changes in bold text) Capital expenditure Interest c.$75m c.$15m Includes capacity expansion projects in US transmission & Assumes base rates are maintained at end July 2026 rates. distribution and
Slide 23: Performance against financial framework
Hill & Smith PLC – 2026 Interim Results 23 Performance against financial framework Framework H1 26 H1 25 FY25 FY24 Organic revenue growth 5-7% 5% 2% 3% flat Total revenue growth 10%+ 8% 5% 5% 6% Operating profit margin 18%+ 17.0% 17.0% 17.4% 16.8% Return on invested capital 22%+ 26.7% 25.8% 26.7% 25
Slide 24: Significant financing headroom
Hill & Smith PLC – 2026 Interim Results 24 Significant financing headroom $m Net debt Facility Principal debt facilities Committed 187.3 437.1 • Revolving credit facility: £300m (c.$400m) maturing November 2029 On demand - 8.2 • Senior notes: second $35m tranche of unsecured notes matures June Cash
Slide 25: Non-underlying items included in operating profit
Hill & Smith PLC – 2026 Interim Results 25 Non-underlying items included in operating profit $m H1 2026 H1 2025 Business reorganisation costs (3.4) - Impairments of assets (2.0) - (Loss)/profit on disposals of subsidiaries (7.8) 1.5 Amortisation of acquisition intangibles (7.4) (7.2) Expenses relati
Slide 26: Sustainability
Hill & Smith PLC – 2026 Interim Results 26 Sustainability Sustainability underpins our growth strategy Health and safety Protecting the world • “I Own Safety” cultural change programme launched in 2026 Focus areas: • Greenhouse gas emissions and • Positive feedback from operating companies energy ef
Slide 27: Operating company framework
Hill & Smith PLC – 2026 Interim Results 27 Operating company framework Informing our portfolio management approach Our purpose We create value by providing solutions that enhance the resilience of vital infrastructure and the built environment Market Dynamics Business Model Management & Culture Expo
Slide 28: Market cyclicality
Hill & Smith PLC – 2026 Interim Results 28 Focus on priority end markets Increasing our exposure to high growth markets with low cyclicality c.27% H1 26 revenue c.32% H1 26 revenue 3 Transport 2 +200bps YoY -600bps YoY products Low Public construction Data centres Other Semiconductors Transport Infr
Slide 29: Disclaimer
Hill & Smith PLC – 2026 Interim Results 29 Disclaimer Cautionary statement This presentation contains forward looking statements which are made in good faith based on the information available at the time of its publication. It is believed that the expectations reflected in these statements are reas
Slide 30: Hill & Smith PLC
Hill & Smith PLC