Hill & Smith Plc · LSE:HILS
Hill & Smith — H1 2025 Earnings Presentation
24 slides from Hill & Smith's earnings presentation, Jun 30, 2025
Slide 1: Interim Results
Interim Results For the six months ended 30 June 2025 Hill & Smith PLC
Slide 2: Highlights
Hill & Smith PLC • HY 2025 Results 2 Highlights Positive trading and outlook, active M&A pipeline, share buyback announced Positive trading performance Portfolio evolution • 4% revenue and 11% profit growth at constant • Active M&A pipeline with multiple ongoing currency discussions • Continued stro
Slide 3: H1 2025 results
Hill & Smith PLC • HY 2025 Results 3 H1 2025 results Positive results, underpinned by continued demand in the US and better profitability in the UK Revenue Operating profit £431.6m +4% £73.5m +11% (H1 2024: £422.7m) constant currency (H1 2024: £68.4m) constant currency Operating margin Profit before
Slide 4: Group overview
Hill & Smith PLC • HY 2025 Results 4 Group overview Focused on structurally growing US infrastructure markets By geography 2% 2% 22% 37% US Operating Revenue £431.6m UK profit 76% £73.5m 61% India By division 24% US Engineered 34% Solutions Revenue Operating 47% profit 50% £431.6m UK & Ind
Slide 5: US Engineered Solutions
Hill & Smith PLC • HY 2025 Results 5 US Engineered Solutions Strong performance, reflecting continued demand growth across larger platform businesses and Constant H1 2025 H1 2024 Currency OCC contribution from recent acquisitions Revenue (£m) 203.6 190.9 +10% +3% Operating profit (£m) 36.4 33.5 +13%
Slide 6: UK & India Engineered Solutions
Hill & Smith PLC • HY 2025 Results 6 UK & India Engineered Solutions Better profitability and margin improvement from portfolio mix, Constant project activity and operational H1 2025 H1 2024 Currency OCC efficiencies Revenue (£m) 125.5 132.8 -5% -1% Operating profit (£m) 12.0 10.2 +19% +12% • Lower
Slide 7: Galvanizing Services
Hill & Smith PLC • HY 2025 Results 7 Galvanizing Services Good performance driven by volume growth in both the US and UK Constant H1 2025 H1 2024 Currency OCC US Revenue (£m) 102.5 99.0 +6% +6% • Record first half despite slower start due to Operating profit (£m) 25.1 24.7 +4% +4% adverse weather Op
Slide 8: Cash generation and financial position
Hill & Smith PLC • HY 2025 Results 8 Cash generation and financial position Hill & Smith continues to be highly cash generative, with a strong balance sheet and significant funding capacity £m H1 2025 H1 2024 Underlying operating profit 73.5 68.4 Depreciation and amortisation 16.1 16.0 Strong cash g
Slide 9: Strategic progress: priority end markets and market cyclicality
Hill & Smith PLC • HY 2025 Results 9 Strategic progress Focus on priority end markets 3 Transport 2 products Low Public construction Data centres Other Semiconductors Transport T&D Infrastructure & gigafactories infrastructure infrastructure Water infrastructure 1 Market cyclicality Renewables Comme
Slide 10: Increasing exposure to higher growth, less cyclical markets
Hill & Smith PLC • HY 2025 Results 10 Increasing exposure to higher growth, less cyclical markets Group US UK & India 7% 6% 8% 20% 2% 30% 25% 45% H1 2025 H1 2025 40% H1 2025 45% 34% 38% High growth emerging markets Resilient growth anchors Stable growth markets Cyclically sensitive markets Good over
Slide 11: US Galvanizing
Hill & Smith PLC • HY 2025 Results 11 US Galvanizing Close alignment with operating company and financial framework Market Dynamics Business Model Management & Culture Growing exposure to priority end markets, Strong customer relationships with a high Strong management team with many years’ with a p
Slide 12: Performance against financial framework
Hill & Smith PLC • HY 2025 Results 12 Performance against financial framework Continued margin expansion, higher return on invested capital, further deleveraging Framework H1 25 FY24 FY23 Organic revenue growth 5-7% 2% flat 5% Total revenue growth 10%+ 2% 3% 13% Operating profit margin 18%+ 17.0% 16
Slide 13: Significant capital allocation flexibility for growth and returns
Hill & Smith PLC • HY 2025 Results 13 Significant capital allocation flexibility for growth and returns £100m share buyback reflecting balance sheet strength 1. Organic growth • Expect to invest c.£40m in capital projects in 2025 • Disciplined investment in capital projects, talent and innovation •
Slide 14: Our investment case
Hill & Smith PLC • HY 2025 Results 14 Our investment case Structural growth High and improving underpinned by the need for returns profile infrastructure investment in delivering superior value our core markets for shareholders Market leader Strong balance sheet with a strong track record supported
Slide 15: Outlook
Hill & Smith PLC • HY 2025 Results 15 Outlook Positive trading to continue in the second half Full year expectations unchanged Strong momentum in larger US platform businesses • Underpinned by investment to upgrade and onshore vital infrastructure and support technology change UK outlook remains cha
Slide 16: Appendices
Hill & Smith PLC • HY 2025 Results 16 Appendices
Slide 17: 2025 guidance
Hill & Smith PLC • HY 2025 Results 17 2025 guidance Key financial modelling assumptions Capital expenditure Interest c.£40m c.£9m Assumes base rates are maintained at end June 2025 rates. Includes aggregate c.£3m for IFRS16 lease, pension deficit interest and amortisation of refinancing fees Cash co
Slide 18: Divisional analysis
Hill & Smith PLC • HY 2025 Results 18 Divisional analysis Constant H1 2025 Organic M&A FX H1 2024 currency OCC US Engineered Solutions Revenue (£m) 203.6 6.0 12.6 (5.9) 190.9 +10% +3% Operating profit (£m) 36.4 2.2 1.9 (1.2) 33.5 +13% +7% Operating margin 17.9% 17.5% UK & India Engineered Solutions
Slide 19: Financial capacity: facilities and usage
Hill & Smith PLC • HY 2025 Results 19 Financial capacity: facilities and usage £m Net debt Facility Principal debt facilities Committed 85.2 302.9 • Revolving credit facility: £250m maturing November 2027 On demand - 6.1 • Senior notes: $70m unsecured notes maturing 2026/29 Cash (71.4) - • c.60% of
Slide 20: Non-underlying items
Hill & Smith PLC • HY 2025 Results 20 Non-underlying items H1 2025 H1 2024 Amortisation of acquisition related intangibles (5.5) (4.3) Profit on disposal of subsidiaries 1.1 - Expenses relating to acquisitions and disposals (1.1) (1.1) (5.5) (5.4) Comprising Cash in period (net) (1.0) (0.6) Future c
Slide 21: Our purpose and operating company framework
Hill & Smith PLC • HY 2025 Results 21 Our purpose and 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 & C
Slide 22: Sustainability
Hill & Smith PLC • HY 2025 Results 22 Sustainability Sustainability underpins our growth strategy Protecting the world Focus areas: Health and safety • Greenhouse gas emissions and • Expanded tooling to support risk identification and corrective actions energy efficiency • KPI dashboards implemented
Slide 23: Disclaimer
Hill & Smith PLC • HY 2025 Results 23 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 reasonabl
Slide 24: Hill & Smith PLC
Hill & Smith PLC