Hill & Smith (LSE:HILS) reported steady results for 2025, with revenue rising slightly by 2% to £868.8m while underlying operating profit increased 5%. The improvement was largely driven by strong demand across its U.S. infrastructure operations, which helped offset softer trading conditions in the UK.
Group profitability also improved during the year, with underlying operating margins reaching 17.4%. Earnings per share advanced 8%, reflecting both operational progress and disciplined cost management. The company’s U.S. businesses now account for nearly four-fifths of total operating profit, highlighting the growing importance of the region within the group’s earnings mix.
Hill & Smith generated strong cash flow in 2025, supporting a return on invested capital of 26.7% while maintaining very low leverage. The financial strength allowed the company to increase its dividend by 8%, initiate a £100m share buyback programme and allocate £35m toward expanding production capacity in its higher-growth U.S. platforms.
The group also continued to pursue targeted acquisitions to enhance its infrastructure portfolio. It has agreed two bolt-on deals during the year — Freeberg in the United States and Hentech in Ireland — reinforcing its strategy of selective M&A to broaden its engineered solutions offering. Despite the strong U.S. momentum, management remains cautious about the timing of any meaningful recovery in the UK market during 2026.
Overall, the company’s outlook remains constructive thanks to solid financial performance and shareholder-friendly capital allocation initiatives such as the buyback programme. Technical indicators currently suggest bullish momentum, although a relatively high price-to-earnings valuation could temper upside expectations.
More about Hill & Smith Holdings
Hill & Smith PLC is a UK-listed provider of engineered products and services designed to strengthen critical infrastructure and the built environment. The group operates through U.S. and UK & India Engineered Solutions as well as Galvanizing Services divisions, supplying composite and steel systems, seismic protection technologies, safety solutions and galvanizing services. Its products support sectors including energy, transportation, data centres and industrial markets, and the company employs around 4,500 people with an increasing focus on growth in the United States.
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