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| 10-11 CHARTERHOUSE SQUARE, LONDON EC1M 6EE TELEPHONE: +44 (0)20 7549 5700 | 18 November 2025
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
Very strong results - ahead of expectations. Great momentum | | FY25 | FY24 | Change | | Revenue | £1,524.5m | £1,363.4m | +12% | | Organic revenue growth | 11% | 6% |
| | Adjusted operating profit | £342.7m | £285.0m | +20% | | Adjusted operating margin | 22.5% | 20.9% | +160bps | | Statutory operating profit | £283.7m | £207.4m | +37% | | Free cash flow | £247.2m | £197.9m | +25% | | Free cash flow conversion | 105% | 101% |
| | Adjusted earnings per share | 176.0p | 145.8p | +21% | | Basic earnings per share | 137.9p | 96.5p | +43% | | Leverage | 0.8x | 1.3x |
| | Total dividend per share | 62.3p | 59.3p | +5% | | ROATCE1 | 20.9% | 19.1% | +180bps | All alternative performance measures are defined in note 15 to the Condensed Consolidated Financial Statements 1 Return on adjusted trading capital employed as defined in note 15
| ● | Very strong organic revenue growth of 11%, ahead of expectations. Volume-led growth in all three Sectors. Reported growth of 12%, including +3% net acquisitions partially offset by FX | | ● | Differentiated value-add model and strong execution: Margin up 160 basis points to 22.5%, ahead of expectations | | ● | Strong earnings growth reflects ambition, building on long-term track record: FY25 EPS growth of 21% | | ● | Disciplined returns: 20.9%, up 180 basis points | | ● | Acquisition momentum: Six deals since start of Q4 for £92m at average 8x multiple. Total of seven since start of FY25 in attractive markets like aerospace, defence and IVD. Healthy acquisition pipeline | | ● | Financial firepower: Strong cash generation, modest leverage at 0.8x | | ● | Quality and diversity of portfolio: attractive end markets driving structural growth | | ● | Positive start to new year. FY26 guidance: organic revenue growth of 6%, significantly weighted to H1, and operating margin of c.22.5% | | ● | Sustainable Quality Compounding | Commenting, Johnny Thomson, Diploma's Chief Executive said: | "It's been another great year. I'd like to thank my brilliant Diploma colleagues for their skill, dedication and passion. They make it happen. "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. "We have great momentum into the new year. The quality and diversity of our portfolio positions us well for structural organic growth. Our acquisition pipeline is healthy. And the team is in great shape. We're just getting started."
| | Sector performance | ● | Controls +20% organic growth: Strong execution and attractive end market exposures. Double-digit growth in Windy City Wire and International Controls. Peerless exceeded expectations | | ● | Seals +2% organic growth: Sequential improvement in H2. North American Seals strong, International Seals recovered well in Europe while UK remains challenging. Well-positioned for growth | | ● | Life Sciences +6% organic growth: Strong growth in a tough healthcare market, driven by share gains across medtech and in vitro diagnostics (IVD) markets in Canada and Australia | | | FY26 guidance | ● | Organic revenue growth of 6% - with growth from all three Sectors | | ● | Significantly H1 weighted performance - reflecting very strong H2 comparators | | ● | Acquisitions announced to date add +2% to reported growth - this will increase if further acquisitions are made | | ● | Maintaining operating margin at c.22.5% | | | | Preliminary results
Diploma's preliminary results for the year ended 30 September 2025 have been submitted in full unedited text to the Financial Conduct Authority's National Storage Mechanism and will be available shortly for inspection at National Storage Mechanism | FCA. The results are also available at http://www.rns-pdf.londonstockexchange.com/rns/8832H_1-2025-11-17.pdf and the corporate website: www.diplomaplc.com. Dividends For the financial year ended 30 September 2025 (FY25), the Board has recommended a final dividend of 44.1p per share (FY24: 42.0p) making the proposed full year dividend 62.3p (FY24: 59.3p), up 5%, in line with the Board's dividend policy. The final dividend for FY25 is subject to approval by shareholders at the Annual General Meeting on 14 January 2026 and, if approved, will be paid on 30 January 2026 to shareholders on the register at 16 January 2026. Shares will trade ex-dividend from 15 January 2026. | Notes: 1. Diploma PLC uses alternative performance measures as key financial indicators to assess the underlying performance of the Group. These include organic revenue growth, adjusted operating profit/adjusted operating margin, adjusted earnings per share, free cash flow/free cash flow conversion, leverage and ROATCE. Definitions of these metrics are set out in note 15 to the Condensed Consolidated Financial Statements in this Announcement. 2. Certain statements contained in this Announcement constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of Diploma PLC, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such statements. Such risks, uncertainties and other factors include, among others, exchange rates, general economic conditions and the business environment.
A presentation of the results to analysts and investors will be held at 09:00 GMT. This will be streamed live via webcast and audio conference call and webcast.
Register your attendance for the webcast at: https://brrmedia.news/DPLM_FY25 Conference call dial in details: | ● | Dial in: UK-Wide: +44 (0) 33 0551 0200 / UK Toll Free: 0808 109 0700 | | ● | Password: Diploma | | For further information please contact: |
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| | Diploma PLC - | +44 (0)20 7549 5700 | | Johnny Thomson, Chief Executive Officer | | | Wilson Ng, Acting Chief Financial Officer |
| | Holly Gillis, Head of Investor Relations |
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| | Teneo - | +44 (0)20 7353 4200 | | Martin Robinson |
| | Camilla Cunningham |
| NOTE TO EDITORS: Diploma PLC is a group of specialist businesses that provide critical products and value-added services to customers across a wide range of markets - where quality, reliability and expertise matter most. We help our customers run smarter, safer and stronger. We provide the bolts that hold planes and race cars together, design the seals that make wind turbines work, and help surgeons find the best solutions to save lives. We employ c.3,400 colleagues across the Group. Our businesses primarily operate across the US, Canada, the UK, Europe and Australia. Diploma delivers sustainable quality compounding. Over the last seven years, the Group has grown adjusted earnings per share (EPS) at an average of c.18% p.a. through a combination of organic growth and acquisitions. Diploma is a member of the FTSE 100. Further information on Diploma PLC can be found at www.diplomaplc.com The person responsible for releasing this Announcement is Anna Lawrence, Company Secretary. LEI: 2138008OGI7VYG8FGR19 |
