HALMA (=) : After the (Photonics) call - FY2026

Research evidence excerpt

HALMA (=) : After the (Photonics) call - FY2026

EQUITIES

CAPITAL GOODS

HALMA NEUTRALPRICE* 4,642p  TARGET PRICE 4,450p (DOWNSIDE 4%)

FLASH NOTE

After the (Photonics) call - FY2026

11 JUNE 2026 Securities Research Report Production time: 11:23* (London time)

Research Analyst & Publishing Entities

Stephan Klepp, CFA BNP Paribas London Branch (+44) 734 573 1907 stephan.klepp@uk.bnpparibas.com

What happened?

Halma reported its FY26 results this morning (see HALMA: First glance - FY 2026: Small profit beat, low teens growth

for FY27) and its conference call just ended. Unsurprisingly, the majority of the Q&A session was spent on Photonics.

Photonics – Product offering…: Management outlined that they have been working with their undisclosed hyperscaler

for a decade and supported the client with regard to multi-generations of optical switches. No commentary was given

on further product details, but Halma sees a great opportunity in the very dynamic market due to hyperscalers’ need to

further improve power efficiency and reduce latency.

Photonics – Relationship to its client: Halma stated that they co-design and produce the equipment for the client

and that the relationship is very strong as support not only in production, but also regarding inventory management and

research & development. Management implied that the strong relationship of Avo Photonics and its client is

safeguarding the single source supply relationship.

Photonics – Growth outlook of 30%…: Photonics is guided to grow 30% in FY27 (which gives a 3Y CAGR since

FY25 of c40%). Management pointed out that this guidance differs from last year (when guidance was increased two

times) by having now proven that they can scale their photonics business at pace. Their guidance is based on the