Diploma PLC (LSE:DPLM) shares jumped 11% after the technical products engineer impressed with half-year results that included an upgrade to full-year guidance.
The six months ended 31 March 2025 saw a 14% year-on-year increase in revenue to £728.5 million, with organic revenue growth of 9%, compared with 5% for the same period last year.
Adjusted operating profit rose by 25% to £156.9 million, with the margin improving by 190 basis points to 21.5%. Adjusted earnings per share grew by 23% to 80.2p, while free cash flow reached £83.8 million with a conversion rate of 78%.
The interim dividend was raised to 18.2p per share, up 5% from the prior year.
The FTSE 100-listed company upgraded its guidance for the full year, guiding to 8% organic revenue growth, up from 6%, and an operating margin of approximately 22%, up from 21%.
Analysts said this implied around a £330 million adjusted operating profit, which was around 5% ahead of the City analyst consensus.
CEO Johnny Thomson said: "Despite the uncertain environment, I feel confident in our ability to deliver on our upgraded guidance this year."
The strongest growth came from the Controls segment, with 16% organic growth, driven by Windy City Wire and Peerless Aerospace. Life Sciences grew 6%, while the Seals segment was flat and described as a "resilient performance in challenging markets".