Hill & Smith raises 2026 guidance after strong first half

Hill & Smith on Tuesday lifted its 2026 financial guidance following a robust first-half performance, though its shares slipped in early trading.

The UK-based infrastructure and construction services group reported a 12% rise in first-half revenue to £547.2 million, driven by sustained demand in its core markets. Pre-tax profit increased 17% to £68.4 million, while operating profit rose 15% to £72.1 million. The company attributed the growth to strong order books and operational efficiencies across its divisions.

Management raised its full-year 2026 outlook, citing continued momentum in infrastructure spending and energy transition projects. The updated guidance assumes mid-single-digit percentage growth in revenue and operating profit compared with prior estimates. Analysts noted the revision reflects confidence in Hill & Smith’s ability to sustain margins amid inflationary pressures.

Despite the positive outlook, Hill & Smith’s shares fell 2.1% to 1,845 pence in early trading on the London Stock Exchange. The decline followed a broader market pullback in UK mid-cap stocks and a modest profit-taking move after the earnings update.

Hill & Smith, which operates in the UK, Europe, and North America, provides steel-based infrastructure solutions, including bridges, highways, and energy transition components. The company has benefited from increased public and private sector investment in critical infrastructure projects.

The group’s order book remains strong, with a pipeline of projects valued at £1.2 billion, supporting its upgraded guidance. Management emphasized disciplined capital allocation and a focus on high-margin segments to offset cost pressures.

Analysts at Peel Hunt maintained a ‘Buy’ rating on the stock, citing the improved outlook and valuation. However, they noted that macroeconomic uncertainties and potential delays in project commencements could pose risks to the revised guidance.