Hill & Smith (LON:HILS) Posts Earnings Results

Hill & Smith (LON:HILS) announced its quarterly earnings results on Wednesday. The company reported GBX 132.20 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Hill & Smith had a net margin of 9.36% and a return on equity of 16.99%.

Here are the key takeaways from Hill & Smith’s conference call:

• The group delivered a robust FY25 with organic constant‑currency revenue +3% (accelerating to +4% in H2), underlying operating profit +6% OCC, underlying margin up 60bps to 17.4%, ROIC 26.7%, EPS +8%, dividend +8%, cash conversion 91% and net debt £51m (covenant leverage ~0.1x).
• The operating split is increasingly US‑driven (now ~63% of revenues and ~79% of profits) with strong US momentum expected into 2026, while UK & India Engineered Solutions weakened (revenue -6%, profit -17% OCC) and management is cautious on UK recovery.
• Capital allocation is focused on growth — £35m committed organic investment in US capacity over two years, acquisitions agreed (Freeburg: $36m for 80% with earn‑out; Hentec: €7.3m) and a £100m share buyback program (≈£32m executed to date).
• Galvanizing Services outperformed with 10% OCC revenue growth and 13% OCC profit growth (H2 revenue +14%), US volumes up high‑teens and further margin expansion, underpinning a favorable medium‑term outlook.
• The Freeburg earn‑out (up to $50m for the remaining 20%) requires ambitious profit growth (roughly from ~$5m current EBIT to ~ $25m at the top end), offering material upside if delivered but dependent on execution and market demand.

Hill & Smith Trading Up 1.1%

Shares of HILS stock opened at GBX 2,285 on Thursday. Hill & Smith has a fifty-two week low of GBX 1,463.97 and a fifty-two week high of GBX 2,455. The company has a 50 day moving average price of GBX 2,291.80 and a 200 day moving average price of GBX 2,193.74. The stock has a market capitalization of £1.81 billion, a P/E ratio of 22.99 and a beta of 1.22. The company has a debt-to-equity ratio of 26.57, a quick ratio of 0.92 and a current ratio of 1.87.

Wall Street Analyst Weigh In

A number of research analysts have commented on HILS shares. Shore Capital Group reaffirmed a “hold” rating on shares of Hill & Smith in a research report on Wednesday. Jefferies Financial Group reiterated a “buy” rating and issued a GBX 2,530 target price on shares of Hill & Smith in a report on Thursday, November 20th. Three investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, Hill & Smith presently has a consensus rating of “Moderate Buy” and an average target price of GBX 2,601.67.

About Hill & Smith

Our purpose is to create sustainable infrastructure and safe transport through innovation.

Hill & Smith PLC is an international group with leading positions in the supply of infrastructure products and galvanizing services to global markets. Through a focus on leading positions in niche markets we aim to consistently deliver strong returns and shareholder value.

Supplying to, and located in, global markets the Group serves customers from facilities in Australia, India, Sweden, the UK and the USA, building a presence in international markets, where countries are upgrading or improving their infrastructure as their economies grow.