Halma Earnings: Recovery in Environmental and Analysis Segment Underpins Strong Performance

Narrow-moat Halma’s impressive first-half fiscal 2025 result showcases its high-quality, defensive business models with long-term growth drivers. First-half revenue grew 13.0%, of which 11.5% was organic, to GBP 1.1 billion and beat company-compiled consensus by 2%. Adjusted operating profit margin also improved by 70 basis points to 20.7%, which is tracking in line with our full-year estimate of 20.9%. Full-year guidance was unchanged. Shares are trading 8% higher intraday and are fairly valued to our GBX 2,600 fair value estimate, which we maintain.