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Hill & Smith PLC Interim results For the six months ended 30 June 2026
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Strong H1 delivery; modest upgrade to FY26 operating profit expectations Hill & Smith PLC – 2026 Interim Results 2 Strong trading performance • 5% OCC revenue growth, driven by robust US infrastructure demand • US businesses delivered 14% OCC revenue growth, supported by both Engineered Solutions and Galvanizing • Continued progress in higher-growth priority end markets • Operating margins maintained, with further US expansion offset by lower UK Engineered Solutions margin Strong balance sheet and returns • ROIC increased 90bps to 26.7%, reflecting growth in US Engineered Solutions businesses • Interim dividend of 25c per share, up 7% • Continued execution of share buyback programme • Covenant leverage remains low at 0.4 times Good strategic progress • US organic growth investments progressing well • Freeberg and Hentech acquisitions completed and performing well • Active and growing M&A pipeline, aligned to our strategic framework • Actions taken to improve strength and resilience of UK operations Full year expectations raised • Strong first half performance and sustained momentum in US businesses • FY26 operating profit expected to be modestly ahead of previous expectations, with small margin progression vs. FY25 • Continued confidence in the medium- term growth outlook
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Operating and Financial Review Hill & Smith PLC – 2026 Interim Results 3
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Dividend per share 25.0c +7% (H1 2025: 23.4c) H1 2026 results Hill & Smith PLC – 2026 Interim Results 4 Strong results led by double-digit US growth Revenue $606.7m +5% OCC (H1 2025: $561.1m) Underlying operating margin * 17.0% Unchanged (H1 2025: 17.0%) Underlying operating profit * $102.9m +3% OCC (H1 2025: $95.5m) Return on invested capital * 26.7% +90bps (H1 2025: 25.8%) Underlying earnings per share * 90.6c +9% (H1 2025: 82.9c) * Underlying operating profit excludes non-underlying charges totaling $26.4m, which included a net cash cost of $1.0m Further details provided in the Appendices.
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55% 7% 38% 84% 15% 1% Operating profit 51% 24% 25% Revenue and profit increasingly weighted towards faster-growth US Hill & Smith PLC – 2026 Interim Results 5 US businesses generated 66% of Group revenue and 84% of Group operating profit in H1 66% 32% 2% 76% 22% 2% Revenue 50% 16% 34% By geography By division 61% 37% 2% 47% 29% 24% ▪ Galvanizing Services ▪ US Engineered Solutions ▪ UK & India Engineered Solutions HY 26 HY 25 ▪ India ▪ US ▪ UK HY 26 HY 25
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US Engineered Solutions: structural growth accelerating across electrical grid, data centre and infrastructure markets • Solid demand for composite solutions across a range of end markets; margins slightly lower due to mix • Very strong growth in transmission & distribution substation business, with a record order book at the end of the period • Strong demand for engineered supports across several sectors • Integrated off-grid solar and message board businesses showing signs of improvement • Freeberg delivered strong performance: o H1 operating margins above expectations with revenue expected to accelerate in H2 o Commissioning of new Arizona facility on track Strong prospects, supported by positive long-term structural growth drivers 6% 50%28% 16% Revenue by end market Hill & Smith PLC – 2026 Interim Results 6 H1 2026 H1 2025 Constant Currency OCC Revenue ($m) 311.6 264.6 +18% +14% Operating profit ($m) 56.5 47.3 +20% +14% Operating margin 18.1% 17.9% 3% 48% 31% 18% Resilient growth anchors Stable growth markets Cyclically sensitive markets High growth emerging markets Outer: H1 2026 Inner: H1 2025
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Galvanizing Services: double-digit growth and margin expansion US (59% of revenue, +16% OCC) • Record results driven by strong volume growth • Good demand from a balanced mix of end markets • Margins above the prior period, reflecting excellent quality and service UK (41% of revenue, +6% OCC) • Volume growth ahead of the wider market • Pricing at similar levels to prior year • Margin ahead of prior year reflecting continuing strong commercial execution Good prospects underpinned by momentum across a broad range of end markets Hill & Smith PLC – 2026 Interim Results 7 H1 2026 H1 2025 Constant Currency OCC Revenue ($m) 150.9 133.3 +11% +11% Operating profit ($m) 38.7 32.6 +18% +18% Operating margin 25.6% 24.5% 15% 6% 33% 46% Revenue by end market 10% 8% 37% 45% Resilient growth anchors Stable growth markets Cyclically sensitive markets High growth emerging markets Outer: H1 2026 Inner: H1 2025
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UK & India Engineered Solutions: UK improvement actions initiated • As expected, lower revenue and profitability reflect challenging UK market conditions and non-repeat of prior year project benefit • Good demand and prospects within data centre markets • Lower activity in other markets, particularly road and industrial infrastructure and residential construction; margins reduced due to operational leverage • Hentech successfully integrated and performing well • Revenue growth in India with a robust pipeline of future business Decisive actions taken to strengthen UK portfolio: • Increased focus on higher-growth end markets • Steps to combine existing businesses to create larger, more efficient operations • Portfolio actions to reshape UK group Actions expected to improve resilience and support margin recovery over time Hill & Smith PLC – 2026 Interim Results 8 H1 2026 H1 2025 Constant Currency OCC Revenue ($m) 144.2 163.2 -14% -13% Operating profit ($m) 7.7 15.6 -52% -61% Operating margin 5.3% 9.6% 19% 1% 41% 39% Revenue by end market 11% 2% 50% 37% Resilient growth anchors Stable growth markets Cyclically sensitive markets High growth emerging markets Outer: H1 2026 Inner: H1 2025
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Cash generation and financial position Hill & Smith PLC – 2026 Interim Results 9 $m H1 2026 H1 2025 Underlying operating profit 102.9 95.5 Depreciation and amortisation 21.6 20.9 Underlying EBITDA 124.5 116.4 Working capital (44.8) (15.3) Capital expenditure (net) (23.1) (15.7) Repayments of lease liabilities (6.9) (6.2) Movements in provisions/other 1.9 1.5 Underlying operating cash flow 51.6 80.7 Underlying cash conversion 50% 85% Restructuring spend (net) (2.6) (0.4) Pension deficit payments (1.4) (2.5) Interest paid (incl. IFRS 16) (6.3) (5.2) Tax paid (14.9) (13.0) Free cash flow 26.4 59.6 Dividends (19.4) (17.2) M&A (53.2) 10.0 Lease movement under IFRS 16 (7.3) 2.3 Share issues/other (net) (5.5) (3.7) Share buyback (44.9) - Net cash flow (103.9) 51.0 FX impact 1.7 (5.6) Net debt 170.9 75.6 Lower cash conversion reflects short-term working capital build in faster-growing US businesses • 50% underlying cash conversion in H1 • Expect significant increase in H2 as working capital positions begin to reverse • Continue to expect cash conversion of 80%+ over time, in line with financial framework Strong return on invested capital • ROIC increased by 90bps to 26.7% • Reflects faster growth in larger US Engineered Solutions businesses Significant balance sheet capacity • Covenant leverage remains low at 0.4 times • $341m facility headroom provides significant capacity for further investment, dividend growth and returns to shareholders • £100m share buyback programme continues to be executed Note: net debt at 30 June 2026 includes lease labilities of $69.4m (June 25: $58.4m)
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50% 26.7% 17.0% 8% 5% 0.4 x H1 26 80%+ 22%+ 18%+ 10%+ 5-7% 1-2 x Framework Performance against financial framework Hill & Smith PLC – 2026 Interim Results 10 Organic revenue growth accelerating; continued strong returns Organic revenue growth Total revenue growth Operating profit margin Return on invested capital Cash conversion Covenant leverage • Accelerating organic revenue growth led by robust US infrastructure demand • Total revenue growth supported by contributions from acquired Freeberg and Hentech businesses • Margins maintained in H1; expected small year-on-year margin progression for full year 2026 (FY25: 17.4%) • Strong returns driven by faster-growing US businesses and disciplined capital allocation • Working capital build impacted H1 conversion; expect significant improvement in H2 • Covenant leverage remains low, providing significant capital allocation flexibility
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Strategic Update Hill & Smith PLC – 2026 Interim Results 11
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9% 41% 30% 20% 15% 1% 37% 47% Strategic actions continue to improve end market mix Hill & Smith PLC – 2026 Interim Results 12 UK & India (34% of revenue)Group US (66% of revenue) Positive progress • Share of revenue from high and resilient growth markets increased to 39% (H1 2025: 32%) • Data centre share at 9%, +400bps YoY with growth in both the US and UK • Electrical grid infrastructure revenues of $148m, 24% of Group revenues (+300bps YoY) US • Increase in high growth emerging markets driven by data centres, including positive impact from Freeberg • Strong performance in electrical grid infrastructure drives further increase in resilient growth anchors UK & India • Data centre-related growth, including Hentech acquisition, drives increase in high growth emerging markets • Reduction in stable growth markets primarily in transport infrastructure, with lower project activity and disposal of permanent road barrier business 12% 27% 32% 29% Progress across all geographies towards higher-growth end markets 7% 25% 38% 30% 6% 40% 34% 20% 8% 2% 45% 45% High growth emerging markets Resilient growth anchors Stable growth markets Cyclically sensitive markets Outer: H1 2026 Inner: H1 2025
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Exciting US power transmission & distribution market growth • Power outages are increasing due to ageing infrastructure and extreme weather – decades of under-investment being addressed • Additional growth is being driven by data centres, EVs and wider industrial electrification – significant increase in demand • Power is increasingly being supplied by a wider network of sources, leading to a higher number of grid interconnection points, necessitating grid balancing and storage • US regulators have shown willingness to allow utility companies to increase charges to fund investment programmes • Over the last 18 months, US utility companies have announced significant growth in five-year capex programmes • Capital expenditure on grid infrastructure over the period 2026-2030 is projected to be c.$1.4 trillion, of which c.45%-50% is expected to be on T&D • This implies T&D growth approaching a 10% CAGR over the same period US power T&D is expected to benefit from long-term structural growth drivers Hill & Smith PLC – 2026 Interim Results 13
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59% 33% 8% Strong positions in niche T&D segments V&S Utilities • Engineered tapered tubular steel structures and component packaging for substation construction • Operates through framework agreements with large state utilities (both public and private) and EPC contractors • Value-add services including warehousing, assembly and modular substation solutions Good exposure across our US platform businesses Group H1 T&D revenue $148m Creative Composites Group • Custom design composite material poles for distribution networks, offering many advantages over traditional materials • Growing order book with several state utilities, particularly in California where resistance to extreme weather offers significant benefits • Broad ancillary product suite augments overall value proposition Galvanizing / other Hill & Smith PLC – 2026 Interim Results 14
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V&S Utilities: A major growth driver c.15% of Group revenue, expected to grow by low double digits over the medium term Good alignment with operating company framework • Market leader in key operating geographies; proximity of supply to demand is advantageous • Strong relationships and reputation with large utilities and EPCs through long-term framework agreements • Shorter lead times provide significant source of competitive advantage • Investment in capacity expansion currently being delivered to address growth opportunity Strong financial performance • Organic revenue CAGR of 9% over the last ten years • Very strong double digit revenue growth in H1 26 • Record order book at June 2026 following strong order intake in the period • Above Group and divisional operating margins, with high ROIC • FY24 acquisitions (Capital Steel and Whitlow) performing well Elberton, GA Hill & Smith PLC – 2026 Interim Results 15
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Hill & Smith PLC – 2026 Interim Results 16 US organic growth investments Delivering additional capacity in faster growing markets The Paterson Group (TPG) (Waggaman, Louisiana) • Completed in 2025 at a total cost of c.$10m • Now supporting strong engineered supports markets • TPG delivered over 20% organic revenue growth in H1 2026, at record margins Freeberg (Eloy, Arizona) • c.$12m new facility to support demand from data centre and other faster growing priority end markets • Commissioning on track, with production building during H2 2026 V&S Utilities (Ohio & Oklahoma) • c.$10m expansion of Burton, OH site (online end 2026) • c.$20m relocation of Muskogee, OK to new purpose-built facility (online late 2027) • Increases capacity to meet demand growth across T&D markets V&S Galvanizing (Columbus, Ohio) • c.$20m expansion of existing Columbus galvanizing footprint, online from the end of 2026 • Broadens addressable market in key region
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Continued discipline in capital allocation Hill & Smith PLC – 2026 Interim Results 17 2. Inorganic growth • Structured approach based on operating company and financial frameworks • Target to invest $65m-$95m per year 3. Dividend growth • Provide a growing dividend to shareholders 4. Return surplus capital • Return surplus capital to shareholders if leverage is expected to fall below 0.5 times for a sustained period 1. Organic growth • Disciplined investment in capital projects, talent and innovation • Focus on higher growth, higher return end markets Group ROIC target: >22% through the cycle Strong balance sheet and returns provide significant flexibility • Freeberg and Hentech acquisitions successfully integrated and performing well • Active and growing M&A pipeline, focused on targets aligned with strategic and financial framework • Interim dividend 25c per share (+7%) • £100m share buyback programme ongoing, £58.6m delivered as at 10 August 2026 • Leverage remains low (0.4x on a covenant basis at 30 June 2026), providing significant funding capacity • Capacity expansion in US T&D and galvanizing progressing well, expected to come online from the end of 2026
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FY26 outlook raised: operating profit modestly ahead of previous expectations Hill & Smith PLC – 2026 Interim Results 18 US • Strong first half and sustained momentum in larger platform businesses • Demand supported by structural investment in infrastructure renewal, grid modernisation, water infrastructure, data centres and onshoring • We remain confident in our active and growing M&A pipeline, aligned to our strategic framework UK • Against backdrop of challenging market conditions, portfolio actions expected to improve resilience and support margin recovery over time FY26 operating profit expected to be modestly ahead of previous expectations, with small margin progression vs. FY25 Continued confidence in medium-term growth outlook reflects our strong positions in structurally high growth infrastructure markets
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Appendices Hill & Smith PLC – 2026 Interim Results 19
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Our investment case Hill & Smith PLC – 2026 Interim Results 20 Structural growth underpinned by the need for infrastructure investment in our core markets Entrepreneurial culture supported by an agile, autonomous operating model Market leadership with a strong track record in attractive niches with high barriers to entry High and improving returns profile delivering superior value for shareholders Sustainability at the core of our business model Disciplined capital allocation with a strong balance sheet and excellent cash generation, enabling us to take advantage of organic and inorganic growth opportunities
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Divisional analysis H1 2026 Organic M&A FX H1 2025 Constant currency OCC US Engineered Solutions Revenue ($m) 311.6 36.6 10.4 - 264.6 +18% +14% Operating profit ($m) 56.5 6.6 2.9 (0.3) 47.3 +20% +14% Operating margin 18.1% 17.9% Galvanizing Services Revenue ($m) 150.9 15.4 - 2.2 133.3 +11% +11% Operating profit ($m) 38.7 5.9 - 0.2 32.6 +18% +18% Operating margin 25.6% 24.5% UK & India Engineered Solutions Revenue ($m) 144.2 (22.4) (1.9) 5.3 163.2 -14% -13% Operating profit ($m) 7.7 (9.7) 1.4 0.4 15.6 -52% -61% Operating margin 5.3% 9.6% Group Revenue ($m) 606.7 29.6 8.5 7.5 561.1 +7% +5% Operating profit ($m) 102.9 2.8 4.3 0.3 95.5 +7% +3% Operating margin 17.0% 17.0% Hill & Smith PLC – 2026 Interim Results 21
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2026 guidance updates Hill & Smith PLC – 2026 Interim Results 22 Key financial modelling assumptions (changes in bold text) Cash conversion Towards 80% Capital expenditure c.$75m Includes capacity expansion projects in US transmission & distribution and galvanizing, and $9m in FY26 re: commissioning of Freeberg Arizona facility Effective tax rate c.25.5% Assumes no change in headline corporation tax rate in US or UK Interest c.$15m Assumes base rates are maintained at end July 2026 rates. Includes aggregate c.$5m for IFRS16 leases (including $3m re. Freeberg), pension interest, and amortisation of refinancing fees H1/H2 weighting Slightly higher H2 weighting than FY25 Translation impact of FX movements +/- 1 pence move in: FY revenue FY operating profit GBP +/- $5.0m +/- $0.3m
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99% 25.2% 16.8% 6% flat 0.3 x FY24 50% 26.7% 17.0% 8% 5% 0.4 x H1 26 91% 26.7% 17.4% 5% 3% 0.1 x FY25 80%+ 22%+ 18%+ 10%+ 5-7% 1-2 x Framework Performance against financial framework Hill & Smith PLC – 2026 Interim Results 23 Organic revenue growth Total revenue growth Operating profit margin Return on invested capital Cash conversion Covenant leverage 85% 25.8% 17.0% 5% 2% 0.1 x H1 25
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Significant financing headroom Hill & Smith PLC – 2026 Interim Results 24 $m Net debt Facility Committed 187.3 437.1 On demand - 8.2 Cash (83.4) - Net borrowings 103.9 445.3 IFRS 16 69.4 IFRS 9 (2.4) Reported net debt 170.9 49%51% USD GBP/Other On demand 2029 8.2 437.1 Principal debt facilities • Revolving credit facility: £300m (c.$400m) maturing November 2029 • Senior notes: second $35m tranche of unsecured notes matures June 2029; first $35m tranche repaid upon maturity in June 2026 • c.20% of drawn debt at period end subject to fixed interest rates • Average cost of debt in H1 26 c.4.7% Facilities provide significant headroom of $341m • Net debt: EBITDA 0.4 times (covenant 3 times) • Interest cover 26.1 times (covenant 4 times) • Target net debt : EBITDA range between 1 and 2 times Debt by currency (excl. IFRS16)
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Non-underlying items included in operating profit $m H1 2026 H1 2025 Business reorganisation costs (3.4) - Impairments of assets (2.0) - (Loss)/profit on disposals of subsidiaries (7.8) 1.5 Amortisation of acquisition intangibles (7.4) (7.2) Expenses relating to acquisitions and disposals (3.3) (1.5) Post-acquisition remuneration (2.5) - (26.4) (7.2) Comprising Cash (net) (1.0) - Non-cash (25.4) (7.2) (26.4) (7.2) Hill & Smith PLC – 2026 Interim Results 25
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Sustainability Hill & Smith PLC – 2026 Interim Results 26 Sustainability underpins our growth strategy Focus areas: • Greenhouse gas emissions and energy efficiency • Sustainable products Protecting the world Saving and enhancing lives Focus areas: • Health, safety and wellbeing • Talent, development and engagement • Equity, diversity and inclusion Sustainable governance Focus areas: • Climate risks (TCFD) • Ethical conduct Health and safety • “I Own Safety” cultural change programme launched in 2026 • Positive feedback from operating companies • Every employee will receive training by the end of the year Talent and engagement • Group-wide talent and succession planning process launched during the period • Continue to selectively recruit talent to strengthen and support our businesses as they grow Carbon reduction • Continued focus on carbon reduction measures at an operating company level • UK galvanizing operations transitioning vehicle fleet from diesel to Hydrotreated Vegetable Oil (HVO) in 2026
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Operating company framework Hill & Smith PLC – 2026 Interim Results 27 Management & Culture Our purpose We create value by providing solutions that enhance the resilience of vital infrastructure and the built environment Business Model Cultural fit and collaborationManufacturing with low/medium capital intensity High customer intimacy Management capability Value-add solutions Quality of employees Financial Framework Market Dynamics Potential for bolt-ons Leader in defensible niches Exposure to priority end markets Informing our portfolio management approach
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Focus on priority end markets Hill & Smith PLC – 2026 Interim Results 28 Transport infrastructure T&D infrastructureWater infrastructure Commercial construction Industrial construction Renewables Low High Market cyclicality LowHigh c.32% H1 26 revenue -600bps YoY c.27% H1 26 revenue +200bps YoY c.29% H1 26 revenue -100bps YoY c.12% H1 26 revenue +500bps YoY Oil & Gas Residential construction Transport products Public construction Data centres Semiconductors & gigafactories LNG liquefaction 1 23 4 CAGR (estimated 10 year) Other Infrastructure Group revenue by end market growth and cyclicality Increasing our exposure to high growth markets with low cyclicality 1: High growth emerging markets 2: Resilient growth anchors 3: Stable growth markets 4: Cyclically sensitive markets
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Disclaimer Hill & Smith PLC – 2026 Interim Results 29 Cautionary statement This presentation contains forward looking statements which are made in good faith based on the information available at the time of its publication. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of risks and uncertainties that are inherent in any forward-looking statement which could cause actual results to differ materially from those currently anticipated. Nothing in this document should be regarded as a profits forecast.