Diploma (DPLM) investor relations material

Financial performance and guidance

• Upgraded full-year organic growth guidance to 10%, with year-to-date organic growth at 10%.

• Reported revenue year-to-date increased by 12%, with 4% from acquisitions, partially offset by FX.

• Operating margins remain strong, in line with full-year guidance of 22%.

• Seals and controls segments are showing sequential improvement, especially in North America.

• Peerless and Windy City Wire continue to perform strongly, particularly in aerospace and data centers.

Acquisitions and growth strategy

• Acquired Haagensen A/S for £11 million and Alpha Laboratories for £28 million, totaling nearly £39–40 million at a blended eight times multiple.

• Both acquisitions are expected to deliver high single-digit growth and contribute to future organic growth.

• Haagensen A/S will be integrated with upgraded M-Seals facility, providing cost and growth synergies.

• Alpha Laboratories acquisition provides a platform for IVD market entry in the UK, leveraging expertise from other regions.

• Combined revenue from the two deals is around $30 million, with $5–6 million profit.

Market trends and operational highlights

• North American aftermarket seals business and industrial end markets are showing positive sequential trends.

• Dixa’s growth rates have improved to mid-single digits after management transition.

• Peerless maintains strong margins (mid-30s) and around 10% growth, with expectations of normalization next year.

• Windy City Wire benefits from strong data center and digital antenna system demand; copper price volatility is managed via pass-through pricing.

• UK industrial market remains challenging, but overall momentum is improving quarter by quarter.