Halma PLC (LSE:HLMA) shares jumped 10.5% to a new all-time high of 3,688p after the safety products group raised its full-year outlook after delivering record first-half revenue and profit.
Helped by stronger demand for its photonics business from a major 'hyperscaler' company, the FTSE 100 group reported revenue of £1.24 billion, up 15.2% on the previous year.
Organic revenue growth was 16.7%, including photonics premium growth of circa eight percentage points.
Halma photonics solutions and safety/environmental monitoring equipment are critical in the construction and operation of massive AI datacentres.
In its results, the company said increased demand from a long-standing hyperscaler technology company to support the development of its data centre capabilities accounted for 19% of group revenue in the period, up from 14% a year ago.
Adjusted earnings before interest and tax was increased 26.7% to £282 million, with an EBIT margin of 22.8% – or 22.3% if excluding one-off gains. Staturory profit before tax was up 39% to £241.8 million and earnings per share 29% to 55.32p.
Although cash conversion dipped slightly to 79%, as expected, the group said it remains on track to hit 90% for the full year.
Halma completed two acquisitions during the period for a combined total of £129 million, and maintains a strong balance sheet with net debt at one times EBITDA.
Guidance for the full year was lifted, with the company now expecting mid-teens organic revenue growth – up from the previous "low double digits" outlook – and an EBIT margin of around 22%, excluding one-offs.
The board proposed a 7% increase in the interim dividend to 9.63p per share, payable on 30 January 2026 to shareholders on the register by 19 December 2025.
Order intake is ahead of revenue year-to-date and higher than the same period last year, reinforcing confidence in continued momentum.
"We made excellent progress in the first half, further extending our track record of delivering strong and compounding growth and returns," said CEO Marc Ronchetti.
"The strength and breadth of our first half performance and our current expectations for the remainder of the year support a further upgrade to our guidance."
Analysts at Stifel said: "Following swiftly on Nvidia's results last night, Halma, one of the UK's few AI/ datacentre beneficiaries, has again beaten expectations and raised guidance.
"What is impressive is that group performance is not just about exceptional growth in Avo Photonics (where sales appear to be up around 55% YoY) - there is strong growth across the portfolio, and an upside margin surprise at Safety (27% margin)."