Full Year 2025 Hill & Smith PLC Earnings Call Transcript
Key Points
- Hill & Smith PLC (FRA:7HL) reported a 3% organic constant currency revenue growth for 2025, with an acceleration to 4% in the second half.
- The company achieved a 6% increase in underlying operating profit, with operating margins improving by 60 basis points to 17.4%.
- The US businesses performed strongly, contributing 63% of group revenues and 79% of profits, with significant growth in the US engineered solutions and Galvanizing services.
- Hill & Smith PLC (FRA:7HL) remains highly cash generative with a cash conversion rate of 91%, well above their target of 80%.
- The company announced strategic acquisitions, including Freeberg Industrial Fabrication in the US and Hentech Fabrication in Ireland, to enhance their market position in high-growth sectors.
- The UK market remains challenging, with a cautious outlook on the degree of recovery in UK market conditions.
- The UK & India Engineered Solutions division experienced a decline in revenue and profit, down by 6% and 17% respectively on an OCC basis.
- The off-grid solar business underperformed due to a challenging market, leading to a strategic restructuring.
- The company faces uncertainties related to the UK Roads Investment Strategy (RIS 3), impacting their transport infrastructure business.
- There is a cautious approach towards the potential impacts of geopolitical tensions and energy price fluctuations on their operations.
Good morning, and welcome to the 2025 full year results presentation for Hill & Smith. First, I would like to officially welcome Chris McLeish, who joined as CFO in October 2025, and also to thank Mark Else, who acted as Interim CFO for the period, Hannah stepped down and when Chris joined. Mark has done a very good job, and I would like to take this opportunity to thank him for that.
In terms of the structure of this morning's presentation, I will first take you through the highlights. Chris will then focus on the financials and operating review, and I will finish with a strategic update and the outlook.
So let me start with the highlights. I'm very pleased to say that the group delivered good full year 2025, results, underpinned in particular by the strong performance of our US businesses, whilst the UK market backdrop remains challenging. Organic constant currency revenue growth for the year was 3% and accelerated to 4% in the second half.
And underlying operating profit increased
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