Hill & Smith Shares Climb as Guidance Raised, US Strength Offsets UK Weakness

Shares in Hill & Smith (LON: HILS) edged lower on Wednesday morning, slipping around 0.3% to trade near 3,075p, even after the infrastructure products group raised its full-year profit guidance on the back of a strong first half.

The FTSE 250 constituent reported unaudited results for the six months to 30 June 2026, showing underlying revenue up 8% to $606.7m and underlying operating profit rising 8% to $102.9m, with operating margin held steady at 17.0%.

Growth was driven by a standout performance from its US operations, which delivered 14% organic constant-currency revenue growth across both Engineered Solutions and Galvanizing, as demand from power transmission, distribution and data-centre markets remained robust.

UK Engineered Solutions businesses, by contrast, continued to struggle, with management taking “decisive portfolio and operational actions,” including the May disposal of its permanent steel road barrier business.

Statutory figures painted a weaker picture, with operating profit down 13% to $76.5m and earnings per share falling 21% to 60.2c, reflecting one-off and disposal-related costs. The interim dividend was raised 7% to 25.0c, and the group continues to execute a £100m share buyback, with £58.6m completed to date. Return on invested capital rose to 26.7%, comfortably above its 22% target, while leverage remained low at 0.4 times.

Encouraged by sustained US momentum, Hill & Smith said FY26 underlying operating profit is now expected to come in “modestly ahead” of prior guidance of around $212m.

The shares initially jumped over 1% at the open before reversing, extending a choppy but broadly positive run that has seen the stock climb from around 2,850p in late July to above 3,000p, as investors appear to be booking profits despite the upgraded outlook.