Halma Beats Expectations with Raised Profit Margin Outlook

Halma, a health and safety device maker, has raised its outlook for annual adjusted operating profit margin due to strong first-half progress. The company now expects an adjusted EBIT margin of 23.5% to 24% for the year through March 2027, up from its previous guidance of around 22.7%. This positive news has led to a 2.6% rise in shares in early London trading.

The company's strong first-half performance was driven by favorable contributions from recent acquisitions and disposals across its three business sectors. Halma completed six acquisitions so far this financial year, investing a record £515 million on a cash- and debt-free basis. It also completed three disposals during the period, realizing approximately £83 million net of costs.

The company maintained its forecast for low double-digit percentage organic constant-currency revenue growth for the year, including roughly five percentage points of premium growth from its photonics business. Order intake remains ahead of both this year's revenue and the comparable period last year, supporting the guidance. However, Halma flagged that a recent appreciation of sterling against the dollar and euro could weigh on results through currency translation if it persists.