Diploma Plc · LSE:DPLM
Diploma — Q2 2026 Earnings Presentation
34 slides from Diploma's earnings presentation, May 19, 2026
Slide 1: A Great First Half
Image to replace 19 MAY 2026 A GREAT FIRST HALF HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2026 1 DIPLOMA PLC HALF YEAR RESULTS 2026
Slide 2: Agenda
AGENDA OVERVIEW 01 FINANCIAL PERFORMANCE 02 STRATEGY AND BUSINESS 03 REVIEW 2 DIPLOMA PLC HALF YEAR RESULTS 2026
Slide 3: Overview
OVERVIEW 3 DIPLOMA PLC HALF YEAR RESULTS 2026
Slide 4: Great H1. Further 6% FY26 Upgrade
01 OVERVIEW GREAT H1. FURTHER 6% FY26 UPGRADE. DIVERSE STRONG AMBITION ACQUISITIONS PORTFOLIO FURTHER GROWTH AND WITH ACCELERATE IN ATTRACTIVE 6% UPGRADE EXECUTION DISCIPLINE GROWTH MARKETS 15 deals in LTM +12% Organic ↑15% ↑36% growth Organic growth EPS growth c.£310m invested Net 8x +6% acquisitio
Slide 5: Building on Our Compounding Record
01 OVERVIEW BUILDING ON OUR COMPOUNDING RECORD A long track record of double-digit growth since 20001 Five-year trends Reported revenue growth +23%2 Adjusted EPS Organic revenue growth +10% Revenue Adjusted operating margin 20.2% Adjusted EPS growth +26%2 Free cash conversion 100% Return on capital3
Slide 6: Delivering Sustainable Quality Compounding
01 OVERVIEW DELIVERING SUSTAINABLE QUALITY COMPOUNDING Differentiated value-add Intensely returns business model focused Structurally growing Highly cash end market exposure generative Significant Disciplined capital white space AMBITIOUS DISCIPLINED allocation Quality and diversity GROWTH DELIVERY
Slide 7: A Powerful, Thriving, Decentralised Culture
01 OVERVIEW A POWERFUL, THRIVING, DECENTRALISED CULTURE Energetic mood Highly engaged team Hear from some of our business leaders on Diploma’s culture We are down to earth 7 DIPLOMA PLC HALF YEAR RESULTS 2026
Slide 8: Financial Performance
FINANCIAL PERFORMANCE 8 DIPLOMA PLC HALF YEAR RESULTS 2026
Slide 9: Very Strong H1 Performance
02 FINANCIAL PERFORMANCE VERY STRONG H1 PERFORMANCE AMBITION… H1 26 H1 25 …WITH DISCIPLINE H1 26 H1 25 Organic revenue growth 15% 9% Free cash flow conversion 76% 78% +360bps Revenue growth 17% 14% Return on capital 22.7% 19.1% +300bps Adjusted operating profit margin 24.5% 21.5% Leverage 0.8x 1.1x
Slide 10: Revenue Growth
02 FINANCIAL PERFORMANCE REVENUE GROWTH Six months ended 31 March +2% +4% £851m +26% Life Net FX Seals Sciences acquisitions £728m Controls Organic growth: 15% 17% reported revenue growth H1 25 H1 26 Very strong organic growth 10 DIPLOMA PLC HALF YEAR RESULTS 2026
Slide 11: Margin Expansion
02 FINANCIAL PERFORMANCE MARGIN EXPANSION Six months ended 31 March £209m Opex Net FX £157m reinvestment acquisitions Inflation Volume Pricing Value-add Margin formula 33% operating profit growth H1 25 H1 26 21.5% 24.5% +300bps operating margin expansion All profit metrics are adjusted and stated be
Slide 12: Compounding EPS Growth
02 FINANCIAL PERFORMANCE COMPOUNDING EPS GROWTH Six months ended 31 March 0.8 (10.4) 38.7 Interest (0.1) 109.2p Tax FX 80.2p Operating profit growth 36% EPS growth H1 25 H1 26 Continuing our long-term track record All profit and earnings metrics are adjusted and stated before acquisition related and
Slide 13: Strong Cash Conversion
02 FINANCIAL PERFORMANCE STRONG CASH CONVERSION Six months ended 31 March £110.7m Free cash flow (59.5) (3.9) 208.9 FX (91.8) Dividend (50.6) (10.1) Acquisitions (58.9) 22.7 (1.3) FY 25 H1 26 Net 4 debt Adjusted Depreciation Net Working Interest Other Net debt £299.4m operating capex capital and tax
Slide 14: Acquisition Progress
02 FINANCIAL PERFORMANCE ACQUISITION PROGRESS Controls Seals Life Sciences Q1 26 Q2 to date 15 Q4 25 acquisitions in LTM Controls Seals 8 Controls 7 Seals c.£310m acquisitions for c.£130m acquisitions for c.£180m invested Controls Seals c.£40m Controls Seals Life Science profit contribution (annuali
Slide 15: Disciplined Returns
02 FINANCIAL PERFORMANCE DISCIPLINED RETURNS High returns represents the Return on capital (%) Optimal returns range discipline of 15-20% compounding £1.6bn capital deployed on acquisitions High teens returns 22.7 is our sweet spot 20.9 19.1 17.4 18.1 17.3 Acquisitions must reach 20% Recent returns
Slide 16: Further 6% Upgrade to FY26
02 FINANCIAL PERFORMANCE FURTHER 6% UPGRADE TO FY26 Very strong H1 performance Excellent execution in favourable market Organic revenue growth +12% conditions up from 9% Further contribution from recent acquisitions Net acquisition growth +6% up from 3% Great momentum into H2 Lapping strong H2 compa
Slide 17: Strategy and Business Review
STRATEGY AND BUSINESS REVIEW 17 DIPLOMA PLC HALF YEAR RESULTS 2026
Slide 18: A Clear Strategy for Growth
03 STRATEGY AND BUSINESS REVIEW A CLEAR STRATEGY FOR GROWTH Organic growth in 3 buckets: END MARKET GEOGRAPHIC PRODUCT GROW 01 EXPOSURE 02 EXPANSION 03 EXTENSION Complementary acquisitions to drive future organic growth Value-add business model at scale SCALE Powerful decentralised Group at scale De
Slide 19: Bucket 1: Attractive Growth Markets
03 STRATEGY AND BUSINESS REVIEW BUCKET 1: ATTRACTIVE GROWTH MARKETS SOME EXAMPLES Energy Automation Aerospace In vitro diagnostics Datacentres Infrastructure Defence Electrification Renewables Water Medtech Scientific Nuclear Space Growth tailwind – building resilience 19 DIPLOMA PLC HALF YEAR RESUL
Slide 20: Spotlight on CDM Acquisition
03 STRATEGY AND BUSINESS REVIEW SPOTLIGHT ON CDM ACQUISITION A value-add provider of custom connectors and cable assembly solutions Significantly increases US defence exposure Strong leadership remaining with business Double-digit revenue CAGR High-teens margins Investment Revenue EBIT multiple c.$1
Slide 21: Targeted Acquisitions Accelerate Growth
03 STRATEGY AND BUSINESS REVIEW TARGETED ACQUISITIONS ACCELERATE GROWTH STRONG TRACK RECORD HEALTHY ACQUISITION PIPELINE Long-term pipeline Active opportunities 57 Acquisitions >4,000 >60 £1.6bn Well diversified (by number of opportunities) Invested By sector By geography Seals North America >20% Co
Slide 22: Controls: Excellent Performance
03 STRATEGY AND BUSINESS REVIEW CONTROLS: EXCELLENT PERFORMANCE H1 26 H1 25 Change PERCENTAGE OF GROUP REVENUE * Revenue £495.3m £391.3m +27% 60% Organic growth +26% +16% SECTOR REVENUE MIX Adjusted operating profit £165.7m £114.4m +45% 38% Specialty fasteners 59% 34% North America Wire & cable Adju
Slide 23: Controls Spotlight
03 STRATEGY AND BUSINESS REVIEW CONTROLS SPOTLIGHT FAVOURABLE MARKET PEERLESS Attractive aerospace Strong defence and energy & defence exposure exposure DYNAMICS Acquisitions and investment Recent A&D acquisitions in facilities supporting supporting growth growth in defence EXCELLENT EXECUTION AND S
Slide 24: Seals: Improving Momentum
03 STRATEGY AND BUSINESS REVIEW SEALS: IMPROVING MOMENTUM H1 26 H1 25 Change PERCENTAGE OF GROUP REVENUE * Revenue £224.9m £226.7m -1% 25% Organic growth +2% 0% SECTOR REVENUE MIX Adjusted operating profit £42.5m £42.4m +0% 44% 45% North America Seals Adjusted operating margin 18.9% 18.7% +20bps 23%
Slide 25: Life Sciences: Consistent Performance
03 STRATEGY AND BUSINESS REVIEW LIFE SCIENCES: CONSISTENT PERFORMANCE H1 26 H1 25 Change PERCENTAGE OF GROUP REVENUE * Revenue £130.9m £110.5m +18% 15% Organic growth +4% +6% SECTOR REVENUE MIX Adjusted operating profit £25.9m £21.9m +18% 45% 56% Europe inc. UK Medtech Adjusted operating margin 19.8
Slide 26: Delivering Sustainable Quality Compounding
03 STRATEGY AND BUSINESS REVIEW DELIVERING SUSTAINABLE QUALITY COMPOUNDING DIVERSE STRONG AMBITION ACQUISITIONS PORTFOLIO FURTHER GROWTH AND WITH ACCELERATE IN ATTRACTIVE 6% UPGRADE EXECUTION DISCIPLINE GROWTH MARKETS We’re just getting started 26 DIPLOMA PLC HALF YEAR RESULTS 2026
Slide 27: Appendix
APPENDIX 27 DIPLOMA PLC HALF YEAR RESULTS 2026
Slide 28: Consistent Strong Performance
04 APPENDIX CONSISTENT STRONG PERFORMANCE Five-year trends 5yr average FY25 FY24 FY23 FY22 FY21 Reported revenue growth +23%1 +12% +14% +19% +29% +46% Organic revenue growth +10% +11% +6% +8% +15% +12% Adjusted operating margin 20.2% 22.5% 20.9% 19.7% 18.9% 18.9% Adjusted EPS growth +26%1 +21% +15%
Slide 29: Our Financial Model
04 APPENDIX OUR FINANCIAL MODEL AMBITION… …WITH DISCIPLINE 5% 90% Organic revenue growth Capital-light business model is our first priority drives strong cash conversion High 10% Total revenue growth accelerated Capital stewardship focused by quality acquisitions* on strong returns teens 20%+ <2.0x
Slide 30: Significant "White Space"
04 APPENDIX SIGNIFICANT “WHITE SPACE” US CANADA UK&I GERMANY FRANCE SPAIN OTHER EU ANZ CURRENT CONTROLS Wire & cable ADDRESSABLE MARKET Interconnect Specialty fasteners Specialty adhesives Industrial automation SEALS Seals Gaskets Hoses & fittings Pumps & valves LIFE IVD SCIENCES Medtech Scientific
Slide 31: Disciplined Stewardship of Capital
04 APPENDIX DISCIPLINED STEWARDSHIP OF CAPITAL CAPITAL ALLOCATION PRIORITIES 1 2 3 4 SELECTIVE TARGETED RETURNS TO BALANCE SHEET INVESTMENT FOR ACQUISITIONS SHAREHOLDERS PRUDENCE ORGANIC GROWTH TO DRIVE FUTURE ORGANIC GROWTH Capital-light model Acquisitions deliver Progressive dividend Net debt / EB
Slide 32: Income Statement
04 APPENDIX INCOME STATEMENT Six months ended 31 March £m H1 26 H1 25 Change Revenue 851.1 728.5 +17% Adjusted operating profit 208.9 156.9 +33% Operating margin (%) 24.5% 21.5% Financial expense, net (13.0) (14.1) Profit before tax 195.9 142.8 +37% Effective tax rate (%) 25.0% 24.5% Minority intere
Slide 33: Sector Revenue and Profit
04 APPENDIX SECTOR REVENUE AND PROFIT Revenue Organic growth H1 26 H1 25 Change H1 26 H1 25 £m £m % % Controls 495.3 391.3 +27% +26 +16 Seals 224.9 226.7 (1%) +2 - Life Sciences 130.9 110.5 +18% +4 +6 Group 851.1 728.5 +17% +15 +9 Adjusted operating profit Adjusted operating margin H1 26 H1 25 Chang
Slide 34: Balance Sheet
04 APPENDIX BALANCE SHEET £m, as at 31 March H1 26 H1 25 Goodwill and acquisition intangible assets 1,104.6 1,039.3 Tangible, other intangible, and other financial assets 68.1 62.0 Net lease liabilities (8.7) (3.7) Net working capital 314.3 291.5 Trading capital employed 1,478.3 1,389.1 ROATCE 22.7%