Hill & Smith (LON:HILS) Issues Earnings Results

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

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 1.3%

Hill & Smith stock opened at GBX 2,275 on Wednesday. The company has a market cap of £1.80 billion, a price-to-earnings ratio of 22.89 and a beta of 1.22. The firm has a 50-day moving average of GBX 2,289.40 and a 200-day moving average of GBX 2,193.27. The company has a debt-to-equity ratio of 26.57, a current ratio of 1.87 and a quick ratio of 0.92. Hill & Smith has a one year low of GBX 1,463.97 and a one year high of GBX 2,455.

Analyst Ratings Changes

A number of research firms have weighed in on HILS. Jefferies Financial Group reaffirmed a “buy” rating and set a GBX 2,530 price target on shares of Hill & Smith in a research report on Thursday, November 20th. Shore Capital Group reiterated a “hold” rating on shares of Hill & Smith in a report on Wednesday, November 19th. Three investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of GBX 2,601.67.

Hill & Smith Company Profile

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.