Hill & Smith Plc · LSE:HILS
Hill & Smith — FY2025 Earnings Presentation
28 slides from Hill & Smith's earnings presentation, March 2026
Slide 1: Preliminary results for the year ended 31 December 2025
Hill & Smith PLC Preliminary results For the year ended 31 December 2025
Slide 2: Highlights
Hill & Smith PLC 2 Highlights Strong US performance underpins good results; well placed for further progress in 2026 Two highly complementary acquisitions agreed Strong trading performance Disciplined capital allocation • 3% OCC revenue growth, accelerating to 4% in • £35m organic growth capital inv
Slide 3: Operating and Financial Review
Hill & Smith PLC 3 Operating and Financial Review
Slide 4: 2025 results
Hill & Smith PLC 4 2025 results Good results underpinned by strong performance in US businesses Revenue Underlying operating profit * £868.8m +3% OCC £151.3m +6% OCC (2024: £855.1m) (2024: £143.5m) Underlying operating margin * Return on invested capital * 17.4% +60bps 26.7% +190bps (2024: 16.8%) (2
Slide 5: Group overview
Hill & Smith PLC 5 Group overview Focused on structurally growing US infrastructure markets Revenue Operating profit By geography 2% 2% FY FY 19% 3% 24 25 2% 35% ▪ US 22% 38% 59% ▪ UK 79% 63% 76% ▪ India By division 24% FY FY 24 25 23% 37% ▪ US Engineered 35% 46% 48% Solutions 48% 49% 31% ▪ UK & Ind
Slide 6: US Engineered Solutions
Hill & Smith PLC 6 US Engineered Solutions Strong performance reflecting continued demand growth across platform businesses Constant 2025 2024 Currency OCC Revenue (£m) 416.6 390.3 +10% +6% • Good demand for composite solutions Operating profit (£m) 75.0 69.4 +12% +8% across a range of end markets,
Slide 7: Galvanizing Services
Hill & Smith PLC 7 Galvanizing Services Strong performance in both the US and UK, with good operational and commercial execution Constant 2025 2024 Currency OCC Revenue (£m) 212.8 197.8 +10% +10% US Operating profit (£m) 55.4 50.3 +13% +13% • Record results despite slower start due to Operating marg
Slide 8: UK & India Engineered Solutions
Hill & Smith PLC 8 UK & India Engineered Solutions Lower revenue and profitability reflect challenging UK market conditions; progressive decline in demand in H2 Constant 2025 2024 Currency OCC • Lower activity in road safety businesses Revenue (£m) 239.4 267.0 -10% -6% • Subdued market conditions fo
Slide 9: Cash generation and financial position
Hill & Smith PLC 9 Cash generation and financial position Group continues to be highly cash generative, with a strong balance sheet and significant funding capacity £m 2025 2024 Underlying operating profit 151.3 143.5 Strong free cash flow generation and returns Depreciation and amortisation 31.9 32
Slide 10: Adoption of US dollar for reporting from 2026
Hill & Smith PLC 10 Adoption of US dollar for reporting from 2026 Providing greater transparency and reduced foreign exchange volatility • The significance of the Group’s US dollar earnings and cash flows has increased over time; 63% of revenue and 79% of operating profit were generated by our US bu
Slide 11: Performance against financial framework
Hill & Smith PLC 11 Performance against financial framework Solid organic revenue growth, continued margin expansion, high return on invested capital, low leverage Framework FY25 FY24 FY23 Organic revenue growth 5-7% 3% flat 5% Total revenue growth 10%+ 2% 3% 13% Operating profit margin 18%+ 17.4% 1
Slide 12: Strategic Update
Hill & Smith PLC 12 Strategic Update
Slide 13: Increased exposure to higher-growth end market segments
Hill & Smith PLC 13 Increased exposure to higher-growth end market segments Targeted strategic actions drive progress in end-market mix US UK & India Group (63% of revenue) (37% of revenue) 8% 7% 9% 20% 1% 29% 4% 4% 5%1% 19% 23% 32% 26% 31% 46% 45% 40% 49% 44% 45% 42% 33% 37% 2025 High growth emergi
Slide 14: Continued discipline in capital allocation
Hill & Smith PLC • HY 2025 Results 14 Continued discipline in capital allocation Strong balance sheet and excellent cash generation provide significant flexibility • Capacity expansion in US Engineered Supports 1. Organic growth completed in 2025 • Disciplined investment in capital projects, talent
Slide 15: Allocating capital to organic growth
Hill & Smith PLC 15 Allocating capital to organic growth Focused investment to capitalise on strong long-term structural growth dynamics With current facilities operating at higher levels of utilisation, investing £35m to grow existing networks over the next two years V&S Utilities V&S Galvanizing •
Slide 16: Freeberg Industrial Fabrication acquisition
Hill & Smith PLC 16 Freeberg Industrial Fabrication acquisition Strong exposure to priority end markets Business background • A leading designer and manufacturer of custom enclosures and other engineered solutions, located in California • Strong exposure to attractive end markets including data cent
Slide 17: Freeberg is strongly aligned with our operating company framework
Hill & Smith PLC 17 Freeberg is strongly aligned with our operating company framework Market Dynamics Business Model Management & Culture Strong US data centre exposure, a priority high- Strong and consistent relationships with key Experienced and highly capable management growth end market customer
Slide 18: Outlook
Hill & Smith PLC 18 Outlook Confident of making further good progress in FY26 and beyond Positive trading momentum in US expected to continue • Underpinned by investment to upgrade and onshore vital infrastructure and support technology change • £35m organic growth capital to be deployed in platform
Slide 19: Appendices
Hill & Smith PLC 19 Appendices
Slide 20: Our investment case
Hill & Smith PLC 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 track record A strong balan
Slide 21: Divisional analysis
Hill & Smith PLC 21 Divisional analysis Constant 2025 Organic M&A FX 2024 currency OCC US Engineered Solutions Revenue (£m) 416.6 21.9 16.2 (11.8) 390.3 +10% +6% Operating profit (£m) 75.0 5.5 2.5 (2.4) 69.4 +12% +8% Operating margin 18.0% 17.8% Galvanizing Services Revenue (£m) 212.8 18.6 - (3.6) 1
Slide 22: 2026 guidance
Hill & Smith PLC 22 2026 guidance Key financial modelling assumptions (excluding March 2026 acquisitions) Capital expenditure Interest c.£50m (of which c.£25m relates to c.£10m US capacity expansion projects) Assumes base rates are maintained at end Feb 2026 rates. Includes aggregate c.£4m for IFRS1
Slide 23: Significant financing headroom
Hill & Smith PLC 23 Significant financing headroom £m Net debt Facility Principal debt facilities Committed 82.8 353.4 • Revolving credit facility: £300m maturing November 2029 (increased On demand - 6.2 and extended during the year, with a further one-year extension option) Cash (69.7) - • Senior n
Slide 24: Non-underlying items
Hill & Smith PLC 24 Non-underlying items 2025 2024 Amortisation of acquisition related intangibles (10.8) (9.9) Business reorganisation costs (3.7) - Impairments of assets (14.7) (13.2) Profit/(loss) on disposals of subsidiaries 1.1 (3.1) Expenses relating to acquisitions and disposals (3.1) (1.9) (
Slide 25: Hentech Fabrication acquisition
Hill & Smith PLC 25 Hentech Fabrication acquisition Highly complementary with existing operations Business background • Hentech designs, manufactures and installs engineered steel solutions focused on access flooring and other industrial fabrication • Located in Wexford, Ireland • Strong relationshi
Slide 26: Sustainability
Hill & Smith PLC 26 Sustainability Sustainability underpins our growth strategy Protecting the world Focus areas: Health and safety • Greenhouse gas emissions and • 9% reduction in Lost Time Incident Rate in 2025 energy efficiency • “I Own Safety” cultural change programme launching early 2026 • Sus
Slide 27: Disclaimer
Hill & Smith PLC 27 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 reasonable, but they may be
Slide 28: Hill & Smith PLC
Hill & Smith PLC