Diploma Shares Jump: Sees Double-Digit Growth, Bolstered by Strategic Acquisitions

Diploma PLC (DPLM) saw its share price rise over 2% on Wednesday morning after the company announced a robust start to its fiscal year 2026, marked by double-digit organic revenue growth and a series of strategic acquisitions.

The value-add solutions group reported a 14% surge in organic revenue for the three months ended December 31, 2025, signaling strong market demand and effective execution.

The company's acquisition strategy continues to be a key driver of growth. Diploma completed four acquisitions in the first quarter, investing approximately £75 million to expand its reach in attractive end markets. These include Swift Aerospace, Hydraulic Seals Australia, WDS, and Spring Solutions, each contributing unique capabilities and market access.

Specifically, Swift Aerospace extends Diploma's presence in aerospace fasteners, particularly in Europe. Hydraulic Seals Australia bolsters the company’s aftermarket offering across diverse end markets. WDS adds machining capabilities for OEM applications, and Spring Solutions supports growth in the UK and European defense sectors.

The momentum from acquisitions is considerable, with eight deals completed across the last two quarters, totaling around £130 million. These acquisitions are expected to contribute approximately £20 million in annualized operating profit. The company also indicates a healthy pipeline for future deals, suggesting continued expansion through strategic acquisitions.

Diploma has reaffirmed its FY26 guidance, projecting organic revenue growth of 6% and a margin of approximately 22.5%. The company notes that organic growth is significantly weighted towards the first half of the fiscal year. Net acquisition growth is now projected at 3%, up from the previous estimate of 2%, reflecting the impact of recent acquisitions. This figure may increase further if additional acquisitions are completed.