Diploma: Q3 strength drives another guidance upgrade

Research evidence excerpt

Diploma: Q3 strength drives another guidance upgrade

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Buy Diploma 16 July 2026

Company Update

Europe

United Kingdom

Reuters Bloomberg Exchange Ticker Price at 15 Jul 2026 (GBP) 6,770.00

DPLM.L DPLM LN LSE DPLM

Price Target (GBP) 7,500.00

Business Services

Distributors ADR ISIN 52-week range (GBP) 7,225.004,904.00-

DPMAY US25455X1046

Q3 strength drives another guidance

Valuation & Risks upgrade

David Brockton

Q3 organic growth +15%, continuing H1 momentum, despite a tougher comp Research Analyst

Diploma delivered another period of strong organic growth in Q3 +15%, continuing +44-20-754-11721

the +15% momentum achieved in H1, despite a prior year comparative that was

James Beard

c.2ppts tougher. Research Analyst

+44-20-754-56765

Strong trading in Controls, improvement in Seals, resilient Life Sciences Steve Woolf

Controls continued to perform strongly with broad-based double-digit organic Research Analyst

growth across its businesses in IS Group, Clarendon, Peerless and Windy City Wire +44-20-754-54604

(vs. +26% organic growth in H1). Seals has seen some improvement (vs. +2%

Bharat Rajesh, CFA

organic growth in H1). Life Sciences delivered a resilient performance in

Research Associate

challenging markets (vs. +4% organic growth in H1). 5 previously disclosed

acquisitions completed in the quarter, including CDM in June that establishes a US

interconnect platform with strong position in defence. Furthermore, the pipeline for Key changes

future acquisitions is described as strong.

7,200.00 to

TP ↑ 4.2%

7,500.00

Guidance increase implies a further 7% upgrade vs. consensus 234.31 to

DB EPS (GBP) ↑ 7.5%

Having already materially raised guidance twice this year, Diploma has again raised 251.78