Trump announces trade deal with EU following months of negotiations
LONDON - Hill & Smith PLC (LSE:HILS), a provider of infrastructure solutions, reported a positive start to 2025 with revenue up 3% on a constant currency basis for the four-month period ended April 30.
On Thursday, the company maintained its full-year operating profit outlook in line with analyst consensus.
The infrastructure solutions provider saw robust demand in the U.S. and resilient performance in the U.K. despite a subdued market backdrop.
The company also reported further operating margin expansion against a strong prior-year period.
Hill & Smith’s U.S. Engineered Solutions division delivered good growth, driven by strong demand across its larger platform businesses.
The division maintained an operating margin similar to the same period last year. The UK & India Engineered Solutions division experienced subdued demand in the U.K. but improved profitability due to project activity and cost management efforts.
The Galvanizing Services segment demonstrated robust performance, with modest volume increases in the U.S. despite poor weather early in the year, and good volume growth in the U.K.
Alan Giddins, CEO of Hill & Smith, commented, "Our positive start to the year reflects the continuing robust market demand for infrastructure solutions in the U.S. and our resilient performance in the U.K. We remain confident in our full-year outlook."
The company reported good cash generation and a strong balance sheet, providing significant headroom for both organic and inorganic growth opportunities. Hill & Smith also noted that its M&A pipeline remains active.
Regarding the impact of tariffs, the company stated it has low direct exposure, with about 95% of materials sourced in the U.S. and less than 1% of revenue from U.S. exports. Where raw material cost increases have occurred, the company has been able to mitigate this by raising prices.
Hill & Smith maintains its expectation for full-year 2025 operating profit to be in line with current analyst consensus.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.