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1. Company Snapshot

1.a. Company Description

Halma plc, through its subsidiaries, provides technology solutions in the safety, health, and environmental markets.It operates through three segments: Safety, Environmental & Analysis, and Medical.The Safety segment provides fire detection, specialist fire suppression, elevator safety, security sensors, people and vehicle flow technologies, specialized interlocks that control critical processes safely, and explosion protection and corrosion monitoring systems.


This segment serves elevator safety, fire suppression, people and vehicle flow, fire detection, pressure management, industrial access control, and safe storage and transfer markets.The Environmental & Analysis segment offers optical, optoelectronic, and spectral imaging systems; water, air and gases monitoring technologies; instruments that detect hazardous gases and analyses air quality; and systems for water analysis and treatment.It serves the optical analysis, water analysis and treatment, gas detection, and environmental monitoring markets.


The Medical segment provides critical fluidic components used by medical diagnostics and original equipment manufacturers; laboratory devices and systems that provide information to understand patient health and enable providers to make decisions across the continuum of care; technologies and solutions to enable in-vitro diagnostic systems and life-science discoveries and development; and technologies that enable positive outcomes across clinical specialties.This segment serves the life sciences, health assessment, and therapeutic solutions market.The company was incorporated in 1894 and is headquartered in Amersham, the United Kingdom.

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1.b. Last Insights on HLMA

Halma's recent performance was driven by robust revenue and EBIT growth, strategic investments, and a strong dividend outlook. The company raised its full-year guidance on strong US data centre demand, particularly from a large-scale cloud service provider. Analysts point to sustained revenue growth and strong core market performance as key drivers. The company's Fair Value Estimate has inched higher, reflecting optimism about its prospects. A significant revenue contributor, a single large-scale cloud service provider, accounted for 19% of group revenue, up from 14% last year.

1.c. Company Highlights

2. Halma's Strong H1 2026 Results Driven by Record Revenue and Profit

Halma reported a robust set of half-year results for 2026, with revenue growing 15% to a record level, driven by 16.7% organic growth, 1.6% from acquisitions, and a 3.2% currency headwind. EBIT grew 27%, with a 22.3% margin, up 160 basis points. Earnings per share (EPS) came in at 0.553, beating analyst estimates of 0.4753. The company's investment in R&D, acquisitions, and CapEx was GBP 300 million in the first half, with a cash conversion of 79%, expected to improve to around 90% for the full year.

Publication Date: Nov -21

📋 Highlights
  • Revenue & Profit Growth:: Record revenue grew 15% (16.7% organic, 1.6% acquisitions) and EBIT surged 27%, with a 22.3% margin (up 160 bps).
  • E&A Sector Performance:: Environmental & Analysis (E&A) drove 36% organic revenue and 38% profit growth, fueled by Photonics’ hyperscaler customer demand.
  • Strategic Acquisitions:: GBP 130m spent on acquisitions, including Brownline (largest in 20 years), with net debt/EBITDA under 1x and returns at 16.2%.
  • Investment & Guidance:: GBP 300m invested (GBP 60m R&D, GBP 130m acquisitions) and upgraded full-year guidance to mid-teens organic growth and 22% EBIT margin.

Segment Performance

The company's three sectors - Safety, Environmental & Analysis (E&A), and Healthcare - all delivered strong performances. E&A saw exceptionally strong organic revenue and profit growth of 36% and 38%, respectively, driven by businesses such as Photonics, which benefited from its long-standing relationship with a hyperscaler customer. The Safety sector reported strong margins, driven by continued momentum from double-digit growth in the past two years. Healthcare saw good execution against a background of steady recovery in healthcare markets.

Outlook and Guidance

The company upgraded its full-year guidance, expecting mid-teens percentage organic constant currency revenue growth and an adjusted EBIT margin of around 22%. Halma's sustainable growth model enables the company to invest ahead of the opportunity, think in decades, and seize new opportunities quickly. The company's net debt to EBITDA is just over 1x, and returns have increased significantly to 16.2%.

Valuation

Halma's current valuation metrics indicate a 'P/E Ratio' of 62.56, 'P/B Ratio' of 7.12, and 'EV/EBITDA' of 36.62. The 'ROE (%)' is 11.88, and 'ROIC (%)' is 8.06. The 'Dividend Yield (%)' is 0.65. These metrics suggest that the market has priced in a certain level of growth and profitability, and the company's ability to deliver on its guidance will be crucial in justifying its current valuation.

Growth Drivers

The company's growth drivers, including its strong relationships with customers, investment in R&D, and disciplined approach to M&A, are expected to continue to drive growth. The acquisition of Brownline, one of the company's largest deals in 20 years, reflects its appetite for medium-sized acquisitions. Orders are growing year-over-year, with a positive book-to-bill across the company, including Photonics.

3. NewsRoom

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What Developments Are Shaping the Narrative for Halma Shares?

Dec -02

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FTSE 100 up but mixed US jobs data tempers gains

Nov -20

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Halma PLC (HLMAF) (Half Year 2026) Earnings Call Highlights: Record Growth and Strategic ...

Nov -20

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Halma Shares Jump After Guidance Raise, Strong First-Half Results

Nov -20

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Halma lifts annual revenue forecast on strong US data centre demand

Nov -20

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How the Story Behind Halma Is Evolving Amid Mixed Analyst Sentiment and Upward Valuations

Nov -18

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Is It Too Late To Consider Buying Halma plc (LON:HLMA)?

Nov -17

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Are Industrial Products Stocks Lagging Enersys (ENS) This Year?

Nov -10

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Safety

Expected Growth: 8.9%

Halma plc's 8.9% growth is driven by its diversified portfolio of safety products and services, strong demand from industrial and healthcare sectors, and strategic acquisitions. The company's focus on innovation, operational efficiency, and expansion into emerging markets also contribute to its growth momentum.

Healthcare

Expected Growth: 8.37%

Halma plc's Healthcare segment growth of 8.37% is driven by increasing demand for medical devices, expansion into emerging markets, and strategic acquisitions. Additionally, investments in R&D and innovative products, such as diagnostic equipment and patient care solutions, contribute to the segment's growth.

Environmental & Analysis

Expected Growth: 8.1%

Halma plc's 8.1% growth in Environmental & Analysis segment is driven by increasing demand for water and air quality monitoring, growth in environmental consulting services, and expansion in emerging markets. Additionally, stringent regulations and rising concerns about climate change are fuelling investments in sustainable technologies, contributing to the segment's growth.

Inter-segmental

Expected Growth: 4.85%

Halma plc's 4.85% inter-segmental growth is driven by increasing demand for safety and environmental solutions, expansion into emerging markets, and strategic acquisitions. The company's diversified portfolio, including medical, infrastructure safety, and environmental & analysis segments, also contributes to growth. Additionally, investments in digitalization and innovation enable Halma to capitalize on trends such as IoT and sustainability.

7. Detailed Products

Sensors and Optics

Halma's sensors and optics products are used in a variety of applications, including medical, industrial, and environmental monitoring.

Safety and Analysis

Halma's safety and analysis products provide critical safety solutions for industries such as oil and gas, chemical processing, and power generation.

Water and Waste

Halma's water and waste products provide solutions for water and wastewater treatment, as well as waste management and recycling.

Medical

Halma's medical products provide diagnostic and therapeutic solutions for healthcare professionals and patients.

Environmental and Analysis

Halma's environmental and analysis products provide solutions for environmental monitoring, testing, and analysis.

8. Halma plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Halma plc operates in a niche market with specialized products, reducing the threat of substitutes. However, the company's products are not entirely unique, and some customers may find alternative solutions.

Bargaining Power Of Customers

Halma plc's customers are largely dependent on the company's products, giving them limited bargaining power. The company's strong relationships with customers also reduce the risk of customer switching.

Bargaining Power Of Suppliers

Halma plc has a diverse supplier base, reducing dependence on individual suppliers. However, some suppliers may have significant bargaining power due to the specialized nature of their products.

Threat Of New Entrants

The barriers to entry in Halma plc's markets are relatively high, due to the need for specialized expertise and significant investment in research and development.

Intensity Of Rivalry

Halma plc operates in a competitive market, but the company's strong brand reputation and differentiated products help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.37%
Debt Cost 3.95%
Equity Weight 69.63%
Equity Cost 6.90%
WACC 6.00%
Leverage 43.63%

11. Quality Control: Halma plc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Poste Italiane

A-Score: 7.5/10

Value: 6.2

Growth: 4.7

Quality: 6.2

Yield: 8.8

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
ENAV

A-Score: 6.3/10

Value: 4.1

Growth: 5.8

Quality: 4.9

Yield: 8.1

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Halma

A-Score: 5.7/10

Value: 0.2

Growth: 7.3

Quality: 7.2

Yield: 1.2

Momentum: 9.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Griffon

A-Score: 5.5/10

Value: 3.4

Growth: 7.3

Quality: 4.8

Yield: 5.0

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Lifco

A-Score: 4.7/10

Value: 0.5

Growth: 8.0

Quality: 6.9

Yield: 1.9

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Odet

A-Score: 4.6/10

Value: 9.8

Growth: 1.4

Quality: 3.6

Yield: 0.0

Momentum: 3.0

Volatility: 9.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

36.58$

Current Price

36.58$

Potential

-0.00%

Expected Cash-Flows