Halma has released strong FY25 results (modestly ahead of consensus) which delivered record profits (22nd consecutive record year), and also the 46th year of 5% or more dividend growth. Cash conversion was strong and there should be modest upward pressure to FY26 consensus Results summary H2’25 continued in a positive trajectory with organic growth supported by order intake which remains ahead of revenue y-t-d and y-o-y. Margins have expanded, driven by all divisions, mix, and operational improvements. Revenues grew 10.5% y-o-y (+9.4% at OCC) to £2,248m (consensus £2,220m / INVe £2,204m), driven by Safety and Environmental & Analysis. The adjusted EBIT margin expanded 80bps to 21.6%, giving adjusted EBIT of £486.3m (consensus £475.1m / INVe £464.5m) – a 14.7% increase (+12.6% OCC). EPS grew 14.4% to 94.2p (consensus 92.2p / INVe 89.6p) and the dividend is increased 7.0% to 23.1p (46th consecutive year of >5% growth). ROCE of 15.0% is 60bps lower y-o-y. Cash conversion of 112% is a highlight, and the balance sheet remains strong with net debt/EBITDA is 0.97x (FY24 1.35x). Outlook Order intake is ahead of revenue and up y-o-y. Management expects to deliver upper single-digit % organic cc revenue growth in FY26; this includes an expected benefit from further very strong growth in photonics within the Environmental & Analysis Sector. This adjusted EBIT margin is expected to be modestly above the middle of its target range of 19-23%. This implies low single-digit upward pressure to FY26 consensus. The M&A pipeline is also healthy, and the balance sheet has headroom to facilitate further deals in FY26 (FY25 – £158m spent on 9 acquisitions).