Diploma Plc · LSE:DPLM
Diploma — FY2025 Earnings Presentation
36 slides from Diploma's earnings presentation, Nov 18, 2025
Slide 1: Very Strong Results. Great Momentum.
VERY STRONG RESULTS. GREAT MOMENTUM. FULL YEAR RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 18 NOVEMBER 2025 1 DIPLOMA PLC FULL YEAR RESULTS 2025
Slide 2: Agenda
AGENDA OVERVIEW 01 FINANCIAL PERFORMANCE 02 STRATEGY AND BUSINESS 03 REVIEW 2 DIPLOMA PLC FULL YEAR RESULTS 2025
Slide 3: Overview
OVERVIEW 3 DIPLOMA PLC FULL YEAR RESULTS 2025
Slide 4: Very strong results, ahead of expectations. Great momentum
01 OVERVIEW VERY STRONG RESULTS, AHEAD OF EXPECTATIONS. GREAT MOMENTUM STRONG VERY AMBITION POSITIVE PORTFOLIO IN COMPOUNDING STRONG WITH MOMENTUM ATTRACTIVE ACQUISITIONS PERFORMANCE DISCIPLINE INTO FY26 MARKETS Guidance Attractive end markets ↑11% ↑21% Structural support 6 +6% Organic growth EPS gr
Slide 5: A long track record of compounding
01 OVERVIEW A LONG TRACK RECORD OF COMPOUNDING ACCELERATED UNDER CURRENT STRATEGY 7-year CAGR: 19% revenue 7% organic growth 18% EPS 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Adjusted EPS Revenue We’re just getti
Slide 6: 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: People and culture
01 OVERVIEW PEOPLE AND CULTURE Developing A powerful, thriving the next decentralised generation culture of leaders Highly engaged Energetic mood colleagues We are down to earth 7 DIPLOMA PLC FULL YEAR RESULTS 2025
Slide 8: Financial Performance
FINANCIAL PERFORMANCE 8 DIPLOMA PLC FULL YEAR RESULTS 2025
Slide 9: Strong full year performance
02 FINANCIAL PERFORMANCE STRONG FULL YEAR PERFORMANCE AMBITION… FY25 FY24 …WITH DISCIPLINE FY25 FY24 Organic revenue growth 11% 6% Free cash flow conversion 105% 101% Revenue growth 12% 14% Return on capital1 20.9% 19.1% Adjusted operating profit margin 22.5% 20.9% Leverage2 0.8x 1.3x Adjusted EPS g
Slide 10: Revenue growth
02 FINANCIAL PERFORMANCE REVENUE GROWTH Year ended 30 September +2% +6% £1,525m +20% Life Net FX Seals Sciences acquisitions £1,363m Controls Organic growth: 11% 12% reported revenue growth FY24 FY25 Very strong organic growth 10 DIPLOMA PLC FULL YEAR RESULTS 2025
Slide 11: Margin expansion
02 FINANCIAL PERFORMANCE MARGIN EXPANSION Year ended 30 September £343m FX Opex Net £285m reinvestment acquisitions Inflation Volume Pricing Value-add Margin formula 20% operating profit growth FY24 FY25 20.9% 22.5% 160bps operating margin expansion All profit metrics are adjusted and stated before
Slide 12: Compounding EPS growth
02 FINANCIAL PERFORMANCE COMPOUNDING EPS GROWTH Year ended 30 September 49.7 (0.1) (14.3) Interest (5.1) 176.0p Tax FX 145.8p Operating profit growth 21% EPS growth FY24 FY25 Continuing our long-term track record All profit and earnings metrics are adjusted and stated before acquisition related and
Slide 13: Disciplined stewardship of capital
02 FINANCIAL PERFORMANCE 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
Slide 14: Strong cash conversion
02 FINANCIAL PERFORMANCE STRONG CASH CONVERSION Year ended 30 September £247.2m Free cash flow 342.7 (16.5) (80.9) FX (29.6) (22.6) (98.2) Dividend Net 43.0 acquisitions (13.1) (4.6) FY24 FY25 Net debt Adjusted Depreciation Net Working Interest Other Net debt £419.6m operating capex capital & tax £2
Slide 15: Financial firepower
02 FINANCIAL PERFORMANCE FINANCIAL FIREPOWER Strong capacity for self-funded growth Funding (£m) USPP RCF 1,000 Significant leverage headroom 800 Plans to increase • 0.8x in FY25 facilities to fund • Balance sheet ambitious growth naturally de-levers at 600 over the long term 0.4x per annum 400 Incr
Slide 16: Acquisition momentum
02 FINANCIAL PERFORMANCE ACQUISITION MOMENTUM Q4 Haagensen Electramed Spring Solutions1 International Seals Life Sciences International Controls Denmark Ireland UK Alpha Laboratories Astro Industries WDS Components1 Life Sciences International Controls International Controls UK US UK 6 £92m c.8x bol
Slide 17: Disciplined returns
02 FINANCIAL PERFORMANCE DISCIPLINED RETURNS High returns represents the Return on capital1 (%) Optimal returns range discipline of 15-20% compounding £1.4bn capital deployed on acquisitions High teens returns 22.9 is our sweet spot 20.9 19.1 19.1 17.4 18.1 17.3 Acquisitions must reach 20% FY25 refl
Slide 18: FY26 Guidance
02 FINANCIAL PERFORMANCE FY26 GUIDANCE Significantly H1 weighted FY26 Organic revenue growth +6% reflecting strong H2 comparators Current acquisitions net of disposals to reported growth +2% Operating margin c.22.5% H1 H2 H1 H2 All at constant currency 2025 2026 Continuing compounding outcomes 18 DI
Slide 19: Our financial model
02 FINANCIAL PERFORMANCE 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 teen
Slide 20: Strategy and Business Review
STRATEGY AND BUSINESS REVIEW 20 DIPLOMA PLC FULL YEAR RESULTS 2025
Slide 21: 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 22: Attractive growth markets
03 STRATEGY AND BUSINESS REVIEW ATTRACTIVE GROWTH MARKETS SOME EXAMPLES…. ESTABLISHED EARLY STAGE EXPLORATORY Aerospace Datacentres Water Defence Automation Energy storage Infrastructure Clean energy Nuclear IVD Scientific Supporting long-term structural growth 22 DIPLOMA PLC FULL YEAR RESULTS 2025
Slide 23: Significant white space
03 STRATEGY AND BUSINESS REVIEW 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
Slide 24: Targeted acquisitions accelerate growth
03 STRATEGY AND BUSINESS REVIEW TARGETED ACQUISITIONS ACCELERATE GROWTH STRONG TRACK RECORD HEALTHY ACQUISITION PIPELINE Long term Active Average size 48 pipeline opportunities by enterprise value Acquisitions >4,000 >50 c.£25m £1.4bn Well diversified (by number of opportunities) Invested By sector
Slide 25: A buyer of choice
03 STRATEGY AND BUSINESS REVIEW A BUYER OF CHOICE 25 DIPLOMA PLC FULL YEAR RESULTS 2025
Slide 26: Controls: excellent performance
03 STRATEGY AND BUSINESS REVIEW CONTROLS: EXCELLENT PERFORMANCE FY25 FY24 Change PERCENTAGE OF GROUP REVENUE * Revenue £836.4m £652.4m +28% 55% Organic growth +20% +10% SECTOR REVENUE MIX Adjusted operating profit £250.6m £169.9m +47% 41% Wire & cable 62% 37% North America Specialty fasteners Adjust
Slide 27: Peerless: exceptional performance
03 STRATEGY AND BUSINESS REVIEW PEERLESS: EXCEPTIONAL PERFORMANCE ATTRACTIVE MARKET DYNAMICS STRONG MODEL AND EXCELLENT LEADERSHIP POSITIVE OUTLOOK AND ATTRACTIVE LONG TERM PROSPECTS Exceptional year. Positive outlook 27 DIPLOMA PLC FULL YEAR RESULTS 2025
Slide 28: Seals: sequential improvement
03 STRATEGY AND BUSINESS REVIEW SEALS: SEQUENTIAL IMPROVEMENT FY25 FY24 Change PERCENTAGE OF GROUP REVENUE * Revenue £456.0m £489.1m (7%) 29% Organic growth +2% +1% SECTOR REVENUE MIX Adjusted operating profit £88.1m £90.7m (3%) 45% 46% North America Seals Adjusted operating margin 19.3% 18.5% +80bp
Slide 29: Life Sciences: market outperformance
03 STRATEGY AND BUSINESS REVIEW LIFE SCIENCES: MARKET OUTPERFORMANCE FY25 FY24 Change PERCENTAGE OF GROUP REVENUE * Revenue £232.1m £221.9m +5% 16% Organic growth +6% +6% SECTOR REVENUE MIX Adjusted operating profit £45.3m £46.8m (3%) 43% 54% Europe inc. UK Medtech Adjusted operating margin 19.5% 21
Slide 30: Sustainable quality compounding
03 STRATEGY AND BUSINESS REVIEW DELIVERING SUSTAINABLE QUALITY COMPOUNDING STRONG VERY AMBITION POSITIVE PORTFOLIO IN COMPOUNDING STRONG WITH MOMENTUM ATTRACTIVE ACQUISITIONS PERFORMANCE DISCIPLINE INTO FY26 MARKETS We’re just getting started 30 DIPLOMA PLC FULL YEAR RESULTS 2025
Slide 31: Appendix
APPENDIX 31 DIPLOMA PLC FULL YEAR RESULTS 2025
Slide 32: Consistent strong performance
04 APPENDIX CONSISTENT STRONG PERFORMANCE Seven-year trends 7yr average FY25 FY24 FY23 FY22 FY21 FY20 FY19 Reported revenue growth +18%1 +12% +14% +19% +29% +46% (1%) +12% Organic revenue growth +7% +11% +6% +8% +15% +12% (7%) +5% Adjusted operating margin 19.3% 22.5% 20.9% 19.7% 18.9% 18.9% 16.2% 1
Slide 33: Income statement
INCOME STATEMENT Year ended 30 September £m FY 25 FY 24 Change Revenue 1,524.5 1,363.4 +12% Adjusted operating profit 342.7 285.0 +20% Operating margin (%) 22.5% 20.9% Financial expense, net (27.3) (27.0) Profit before tax 315.4 258.0 +22% Effective tax rate 25% 24% Minority interests (0.6) (0.7) Ad
Slide 34: Sector revenue and profit
04 APPENDIX SECTOR REVENUE AND PROFIT Revenue Organic growth FY 25 FY 24 Change FY 25 FY 24 £m £m % % Controls 836.4 652.4 +28% +20 +10 Seals 456.0 489.1 -7% +2 +1 Life Sciences 232.1 221.9 +5% +6 +6 Group 1,524.5 1,363.4 +12% +11 +6 Adjusted operating profit Adjusted operating margin FY 25 FY 24 Ch
Slide 35: Balance sheet
04 APPENDIX BALANCE SHEET £m, as at 30 September FY25 FY24 Goodwill and acquisition intangible assets 1,042.6 1,048.9 Tangible, other intangible, and other financial assets 71.2 66.0 Net lease liabilities (7.7) (6.4) Net working capital 245.7 276.5 Trading capital employed 1,351.8 1,385.0 ROATCE 20.
Slide 36: Delivering value responsibly
04 APPENDIX DELIVERING VALUE RESPONSIBLY DELIVERING FOR DELIVERING FOR DOING BUSINESS THE ENVIRONMENT OUR PEOPLE RESPONSIBLY CLIMATE WASTE DIVERSITY, EQUITY COLLEAGUE SUPPLY HEALTH ACTION REDUCTION & INCLUSION ENGAGEMENT CHAIN & SAFETY Scope 1 & 2 Waste sent Women in senior Employee Survey Key suppl