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1 DIPLOMA PLC HALF YEAR RESULTS 2026
A GREAT FIRST HALF
HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2026
AGENDA
OVERVIEW 01 FINANCIAL PERFORMANCE 02 STRATEGY AND BUSINESS 03 REVIEW3 DIPLOMA PLC HALF YEAR RESULTS 2026
OVERVIEW
01
OVERVIEW
GREAT H1. FURTHER 6% FY26 UPGRADE.
STRONG GROWTH AND EXECUTION
↑15%
Organic growth
↑24.5%+300bps
Operating margin
↑33%
Operating profit growth
AMBITION WITH DISCIPLINE
↑36%
EPS growth
↑22.7% +360bps
Return on capital1
DIVERSE
PORTFOLIO
IN ATTRACTIVE MARKETS
ACQUISITIONS ACCELERATE GROWTH
15deals in LTM c.£310m invested 8x EBIT multiple
>4,000
opportunities in pipeline
Highly cash generative and significant balance sheet headroom
FURTHER
6% UPGRADE
+12%
+6%
c.25%
Driving operating
Organic growth
Net acquisition growth
Operating margin
profit growth
>30%
Sustainable quality compounding
1 Return on Adjusted Trading Capital Employed (ROATCE)
01
OVERVIEW
BUILDING ON OUR COMPOUNDING RECORD
A long track record of double-digit growth since 20001
Adjusted EPS
Revenue
Annualised TSR
Diploma PLC
FTSE All-Share
Last 5 years
21.4%
10.2%
Accelerated compounding
Five-year trends
Reported revenue growth | +23%2 |
Organic revenue growth | +10% |
Adjusted operating margin | 20.2% |
Adjusted EPS growth | +26%2 |
Free cash conversion | 100% |
Return on capital3 | 18.6% |
Leverage ratio4 | 1.1x |
1 Revenue and EPS CAGR | 2 5-year CAGR | 3 Return on Adjusted Trading Capital Employed (ROATCE) | 4 Net debt / EBITDA
01
OVERVIEW
DELIVERING
Intensely returns focused
Highly cash
generative
Disciplined capital allocation
Tight portfolio management
Depth and quality
of management
Powerful decentralised culture
SUSTAINABLE QUALITY COMPOUNDING
Differentiated value-add business model
Structurally growing
end market exposure
Significant white space
Quality and diversity of portfolio
Fragmented markets and
large acquisition pipeline
Strong M&A competitive advantage
AMBITIOUS GROWTH
DISCIPLINED DELIVERY
01
OVERVIEW
A POWERFUL, THRIVING, DECENTRALISED CULTURE
Energetic mood
Highly engaged
team
Hear from some of our business
leaders on Diploma's culture
8 DIPLOMA PLC HALF YEAR RESULTS 2026
FINANCIAL 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%
Revenue growth
17%
14%
Return on capital
+360bps
22.7%
19.1%
Adjusted operating profit margin
+300bps
24.5%
21.5%
Leverage
0.8x
1.1x
Adjusted EPS growth
36%
23%
Dividend growth
5%
5%
Sustainable quality compounding
02
FINANCIAL PERFORMANCE
REVENUE GROWTH
Six months ended 31 March
£728m
+26%
H1 25
Controls
+2%
Seals
+4%
Life Sciences
Net FX
acquisitions
£851m
Organic growth: 15%
H1 26
17% reported revenue growth
Very strong organic growth
02
FINANCIAL PERFORMANCE
MARGIN EXPANSION
Opex
reinvestment
Inflation
Volume
Pricing
Six months ended 31 March
£157m
Net FX
acquisitions
£209m
Value-add
Margin formula
24.5%
H1 26
21.5%
H1 25
33% operating profit growth
+300bps operating margin expansion
All profit metrics are adjusted and stated before acquisition related and other charges
02
FINANCIAL PERFORMANCE
COMPOUNDING EPS GROWTH
Six months ended 31 March
38.7 0.8 (10.4)
Interest
(0.1)
H1 26
109.2p
80.2p
H1 25
Operating profit growth
Tax FX
36% EPS growth
Continuing our long-term track record
All profit and earnings metrics are adjusted and stated before acquisition related and other charges and acquisition related finance charges
02
FINANCIAL PERFORMANCE
STRONG CASH CONVERSION
Six months ended 31 March
£110.7m Free cash flow
208.9
FY 25
4
Net debt
£299.4m
Adjusted operating profit
22.7
Depreciation
(1.3)
Net capex
(58.9)
Working capital
(50.6)
Interest and tax
(10.1)
Other
(91.8)
Acquisitions
(59.5)
Dividend
(3.9)
H1 26
FX
Net debt
£343.9m
0.8x Leverage
0.8x Leverage
Strong FCF despite significant investment
02
FINANCIAL PERFORMANCE
ACQUISITION PROGRESS
15
acquisitions in LTM
c.£310m
invested
c.£40m
profit contribution (annualised)
c.8x
EBIT average
multiple1
1. At the time of acquisition
Q2 to date7
acquisitions for c.£180m
8
acquisitions for c.£130m
Q1 26 Q4 25CDM awaiting completion subject to regulatory approval Acquired Sinus Electronic's adhesives and silicone business
02
FINANCIAL PERFORMANCE
DISCIPLINED RETURNS
Return on capital (%)
£1.6bn capital deployed on acquisitions
22.7
FY21
FY22
FY23
FY24
FY25
H1'26
Optimal returns range
15-20%
High returns represents the discipline of compounding
17.4 17.3 18.1 19.1 | 20.9 |
High teens returns
is our sweet spot
Acquisitions must reach 20%
Strong returns - ahead of optimal 'high teens' range
Recent returns reflect strong performance and lower-than-typical acquisition spend
02
FINANCIAL PERFORMANCE
FURTHER 6% UPGRADE TO FY26
Very strong H1 performance
Excellent execution in favourable market
conditions
Further contribution from recent acquisitions
Great momentum into H2
Lapping strong H2 comparator
Organic revenue growth
Net acquisition growth
Operating margin
+12%up from 9%
+6%up from 3%
c.25%unchanged
Continued compounding
All at constant currency
17 DIPLOMA PLC HALF YEAR RESULTS 2026
STRATEGY AND BUSINESS REVIEW
03
STRATEGY AND BUSINESS REVIEW
A CLEAR STRATEGY FOR GROWTH
Complementary acquisitions to drive future organic growth
PRODUCT EXTENSION
03
GEOGRAPHIC EXPANSION
02
END MARKET EXPOSURE
01
GROW
Organic growth in 3 buckets:
SCALE
Value-add business model at scale
Powerful decentralised Group at scale
Deliver value responsibly
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
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
c.$170mRevenue
c.$80mEBIT multiple
c.11xAcquisition subject to regulatory approval
03
STRATEGY AND BUSINESS REVIEW
Well diversified
(by number of opportunities)
By sector
By geography
Seals
Controls
Life Sciences
North America UK & Ireland Europe
Australia
HEALTHY ACQUISITION PIPELINE
Active opportunities
>60
Long-term pipeline
>4,000
STRONG
TRACK RECORD
57
Acquisitions
£1.6bn
Invested
>20%
Return on capital
FY 19 - present
Includes CDM; awaiting completion subject to regulatory approval
TARGETED ACQUISITIONS ACCELERATE GROWTH
03
STRATEGY AND BUSINESS REVIEW
* Pro forma revenues adjusted for acquisitions to date
Defence
Energy
Automation
Aerospace
Datacentres
ATTRACTIVE GROWTH MARKETS:
38%
Specialty fasteners
34%
Wire & cable
23%
Interconnect solutions
3%
Specialty adhesives
2%
Industrial automation
59%
North America
17%
Europe
16%
United Kingdom
8%
Australasia / other
SECTOR REVENUE MIX
60%
PERCENTAGE OF GROUP REVENUE*
H1 26 HIGHLIGHTS
Double digit growth in four largest businesses
Excellent execution with attractive market exposures
7 acquisitions - increasing aerospace & defence exposure
Positive outlook
CONTROLS: EXCELLENT PERFORMANCE
H1 26 | H1 25 | Change | |
Revenue | £495.3m | £391.3m | +27% |
Organic growth | +26% | +16% | |
Adjusted operating profit | £165.7m | £114.4m | +45% |
Adjusted operating margin | 33.5% | 29.2% | +430bps |
03
STRATEGY AND BUSINESS REVIEW
Strong defence and energy
exposure
Acquisitions and investment in facilities supporting growth in defence
Recent A&D acquisitions
supporting growth
Attractive aerospace & defence exposure
CONTROLS SPOTLIGHT
FAVOURABLE MARKET DYNAMICS
Strong performance consistent with longterm record
Growing datacentre and DAS exposure
Investing in US and European business development
Outstanding performance
POSITIVE OUTLOOK AND ATTRACTIVE LONG TERM PROSPECTS
EXCELLENT EXECUTION AND STRONG LEADERSHIP
Double-digit organic growth
03
STRATEGY AND BUSINESS REVIEW
H1 26 HIGHLIGHTS
Sector back in growth
North America: Strong performance - improving market conditions and strong execution
International: UK market challenging
3 acquisitions in US, Australia and Ireland
Improving outlook
* Pro forma revenues adjusted for acquisitions to date
Infrastructure
Nuclear
Clean energy
ATTRACTIVE GROWTH MARKETS:
Water treatment
45%
Seals
25%
Gaskets
23%
Hoses & fittings
7%
Pumps & valves
44%
North America
23%
United Kingdom
20%
Europe
13%
Australasia / other
SECTOR REVENUE MIX
25%
PERCENTAGE OF GROUP REVENUE*
SEALS: IMPROVING MOMENTUM
H1 26 | H1 25 | Change | |
Revenue | £224.9m | £226.7m | -1% |
Organic growth | +2% | 0% | |
Adjusted operating profit | £42.5m | £42.4m | +0% |
Adjusted operating margin | 18.9% | 18.7% | +20bps |
03
STRATEGY AND BUSINESS REVIEW
H1 26 HIGHLIGHTS
Consistent performance in challenging healthcare markets
Focus on business development across medtech and IVD
1 acquisition in Norway
Confidence in outlook
PERCENTAGE OF GROUP REVENUE*
15%
SECTOR REVENUE MIX
45%
Europe inc. UK
38%
North America
17%
Australasia
56%
Medtech
38%
IVD
6%
Scientific and other
ATTRACTIVE GROWTH MARKETS:
In vitro diagnostics
Scientific
* Pro forma revenues adjusted for acquisitions to date
LIFE SCIENCES: CONSISTENT PERFORMANCE
H1 26 | H1 25 | Change | |
Revenue | £130.9m | £110.5m | +18% |
Organic growth | +4% | +6% | |
Adjusted operating profit | £25.9m | £21.9m | +18% |
Adjusted operating margin | 19.8% | 19.8% | - |
03
STRATEGY AND BUSINESS REVIEW
DELIVERING
SUSTAINABLE QUALITY COMPOUNDING
STRONG GROWTH AND EXECUTION
AMBITION WITH DISCIPLINE
DIVERSE
PORTFOLIO
IN ATTRACTIVE MARKETS
ACQUISITIONS ACCELERATE GROWTH
FURTHER
6% UPGRADE
We're just getting started
27 DIPLOMA PLC HALF YEAR RESULTS 2026
APPENDIX
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% | +18% | +26% | +51% |
Free cash conversion | 100% | 105% | 101% | 100% | 90% | 103% |
Return on capital2 | 18.6% | 20.9% | 19.1% | 18.1% | 17.3% | 17.4% |
Leverage ratio3 | 1.1x | 0.8x | 1.3x | 0.9x | 1.4x | 1.1x |
Dividend growth | 17% | 5% | 5% | 5% | 26% | 42% |
04
APPENDIX
OUR FINANCIAL MODEL
AMBITION…
…WITH DISCIPLINE
Organic revenue growth
is our first priority
5%
Capital-light business model drives strong cash conversion
90%
Total revenue growth accelerated
by quality acquisitions*
10%
Capital stewardship focused
on strong returns
High teens
Value-add drives strong operating margins
20%+
Balance sheet discipline maintains prudent leverage
<2.0x
Compounding EPS growth
Double
digit
Return to shareholders with a progressive dividend
5%
Sustainable quality compounding
04
APPENDIX
SIGNIFICANT "WHITE SPACE"
US | CANADA | UK&I | GERMANY | FRANCE | SPAIN | OTHER EU | ANZ | |||
CURRENT ADDRESSABLE MARKET | CONTROLS | Wire & cable | ||||||||
Interconnect | ||||||||||
Specialty fasteners | ||||||||||
Specialty adhesives | ||||||||||
Industrial automation | ||||||||||
SEALS | Seals | |||||||||
Gaskets | ||||||||||
Hoses & fittings | ||||||||||
Pumps & valves | ||||||||||
LIFE SCIENCES | IVD | |||||||||
Medtech | ||||||||||
Scientific | ||||||||||
GROWING ADDRESSABLE MARKET | New product verticals | Market Significant Moderate Small White space share | ||||||||
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 / EBITDA | |||
(c.2% capex / revenue) | 20% return on capital1 | 5% annual growth | < 2.0x | |||
drives 90% cash | over time | |||||
conversion |
Return on capital
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 interests | (0.3) | (0.3) | |
Adjusted earnings | 146.6 | 107.5 | +36% |
Weighted average no. shares (m) | 134.2 | 134.1 | |
Adjusted earnings per share | 109.2p | 80.2p | +36% |
Interim dividend per share | 19.1p | 18.2p | +5% |
04
APPENDIX
SECTOR REVENUE AND PROFIT
Revenue | Organic growth | |||||
H1 26 £m | H1 25 £m | Change | H1 26 % | H1 25 % | ||
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 £m | H1 25 £m | Change | H1 26 % | H1 25 % | Change | ||
Controls | 165.7 | 114.4 | +45% | 33.5 | 29.2 | +430bps | |
Seals | 42.5 | 42.4 | +0% | 18.9 | 18.7 | +20bps | |
Life Sciences | 25.9 | 21.9 | +18% | 19.8 | 19.8 | - | |
Central costs | (25.2) | (21.8) | +16% | - | - | - | |
Group | 208.9 | 156.9 | +33% | 24.5 | 21.5 | +300bps | |
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% | 19.1% |
Retirement benefit assets, net | 1.7 | 1.6 |
Acquisition liabilities and assets, net | (38.5) | (23.4) |
Net debt | (343.9) | (373.5) |
Minority interests and deferred tax, net | (45.4) | (49.6) |
Total shareholders' funds (excluding minority interests) | 1,052.2 | 944.2 |
DIPLOMA PLC HALF YEAR RESULTS 2026