Halma Q1’27 Trading Update - First Take - Adj. EBIT margin guidance upgraded but Photonics organic growth (c.30%) unchanged

Our Take: Halma's trading update upgrades the Adj. EBIT margin guidance (from ~22.7% to 23.5-24%), however it reiterates organic revenue growth guidance of "LDD%" which includes a c.5pp contribution from Photonics. Photonics is still expected to grow c.30% this year, which we expect will be a disappointment to some investors. The margin guidance upgrade, driven primarily by positive mix, alongside M&A and operational delivery, should result in consensus moving up c.4% for FY27 (at the midpoint). While this is a good update, we expect the absence of a Photonics growth upgrade to be the focus this morning and expect shares to underperform. Halma made "strong progress" in H1, delivering broad-based growth;