Diploma beats guidance, reports positive start to new year.


Industrial products group Diploma delivered better-than-expected results for the fiscal year to 30 September, with organic revenues and profit margins ahead of guidance, helped by higher volumes across all three divisions.

  • Diploma
  • 18 November 2025 07:28:39
Diploma

Source: Sharecast

Revenues totalled £1.53bn, 12% higher than last year and up 11% on an organic basis, beating the 10% target given in July.

The Controls division reported 20% organic growth, helped by attractive end-market exposures, the company said.

Seals improved organic revenues by 2%, with the second half performing better than the first, as strength in the North American arm and recovery internationally outweighing challenging conditions in the UK.

Meanwhile, the Life Sciences division reported 6% organic growth, which Diploma said was a "strong" outcome in a tough healthcare market.

Group adjusted operating margins improved 160 basis points to 22.5%, ahead of the 22% guidance, driving adjusted operating profits 20% higher to £342.7m.

Free cash flow improved by 25% to £247.2m. The company declared a final dividend of 44.1p per share, taking the total full-year payout to 62.3p, up 5% on last year.

"These strong results demonstrate how we balance ambitious earnings growth and disciplined returns - in good times and bad - to build on our long track record of sustainable quality compounding," said chief executive Johnny Thomson.

Looking ahead, Diploma said the new fiscal year has started "positively", though organic revenue growth is tipped to slow to 6%, weighted to the first half due to "very strong" comparatives in the second half. The operating margin is expected to be maintained at 22.5%.


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