Shares in Diploma PLC (LSE:DPLM) surged to a new high as the FTSE 100-listed engineer reported third-quarter revenue growth well above expectations.
The international distribution group also raised its full-year organic growth guidance to 10%, up from the previous 8%, citing continued positive trading momentum.
Organic growth for the nine months to 30 June 2025 stood at 10%, with reported growth at 12%, including a 4% contribution from acquisitions.
Operating margin remains in line with guidance of approximately 22% for the full year.
The group, which specialises in the distribution of controls and seals, also announced two acquisitions totalling around £39 million.
These were Haagensen A/S, which strengthens the Seals division’s presence in Denmark; and Alpha Laboratories, marking the group’s entry into the UK in-vitro diagnostics market through its Life Sciences segment.
Analysts at Jefferies said the 12% organic revenue growth was materially above expectations of around 8%, driven by continued strength in aerospace fasteners business Peerless, and an improving trajectory in the Seals division.
With organic revenue growth guidance upgraded above the current consensus forecast of 7.8%, the analysts said average EPS estimates are "likely to move higher today, and given Peerless continued strength, we continue to see upside on consensus EBITA margin".
The shares flew 8% higher to 5,625p in early trading, a new all-time high.