Diploma ups outlook for third time in five months after strong quarter

Diploma PLC on Thursday raised its guidance once again after a "very strong" third quarter, supported by its Controls business.

The London-based supplier of specialised technical products and services now expects organic revenue growth of 14% in the financial year ended September, raised from 12%.

In March, the FTSE 100 listing lifted its full-year organic revenue growth expectations to 9% from 6% previously. In May, it increased its forecast further to 12%.

Diploma also raised projections for full-year operating margin to around 26.5% from around 25% before. It had left margin guidance unchanged in May, after boosting it from 22.5% in March.

Diploma said this represents a further around 7% upgrade to consensus for adjusted operating profit of £454 million. In the financial year ended September 30, 2025, Diploma reported adjusted operating profit of £342.7 million.

Shares in Diploma rose 3.6% to 7,010.00 pence each in London, the biggest riser in the FTSE 100 index, which was down 0.5%. The stock has risen 44% in the past 12 months.

Diploma reported organic growth of 15% in the nine months ended June 30, driven by a "very strong" third quarter, building on the momentum seen in the first half of the financial year.

It highlighted "excellent" execution in "favourable" market conditions in Controls, with continued double-digit growth in IS Group, Clarendon, Peerless and Windy City Wire, while Seals performance was a little stronger than the first half. Performance in "challenging" Life Sciences markets was described as "resilient".

Diploma said acquisitions completed to date will add 6% to reported revenue growth and noted it has a strong acquisition pipeline and significant balance sheet capacity.

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