Flowtech Fluidpower Reports 23.7% Revenue Growth in H1 2026 Driven by Acquisitions and Strong Organic Expansion

Strong Organic Growth and Acquisition Impact Drive H1 2026 Revenue

Flowtech Fluidpower plc, a specialist supplier of hydraulic, pneumatic, and process engineering products across the UK, Ireland, and Benelux, recorded H1 2026 revenue of a370.4 million, a 23.7% increase from a356.9 million in H1 2025. The Board confirmed the performance aligned with expectations and showed significant improvement year-over-year. Growth was driven by both organic expansion and acquisitions, with like-for-like revenue rising 13.2%, underscoring robust demand across the core customer base and service offerings.

Regionally, Great Britain, the largest market, generated a348.2 million in H1 2026, up 15.6% from a341.7 million in H1 2025. Excluding acquisitions, Great Britain revenue grew 12.8% to a346.2 million. Ireland posted a312.2 million revenue, reflecting 20.7% growth on both reported and like-for-like bases. Benelux saw the most significant reported increase, with revenue nearly doubling to a310.0 million from a35.0 million, though like-for-like revenue stood at a35.1 million, indicating much of the growth stemmed from acquisitions. Market share gains across all regions highlight the group's expanding customer appeal despite macroeconomic headwinds.

Acquisition Integration Ahead of Schedule; Helipebs Secures Over a32 Million in Orders Post-Acquisition

Over the past 18 months, Flowtech completed five acquisitions totaling approximately a36 million: Thorite (fully integrated), Allswage (March 2025), Thomas Group (May 2025), Q Plus (February 2026), and Helipebs (June 2026). These acquisitions are expected to add around a330 million in annualized revenue and over a33 million in EBITDA, signaling significant earnings accretion. Integration efforts are progressing well, with Thorite fully embedded and ongoing advancements at Allswage and Thomas Group.

Q Plus has outperformed expectations since acquisition, with integration ahead of plan. Notably, Helipebs has already secured more than a32 million in new orders shortly after acquisition, demonstrating its strategic value and potential for cross-selling opportunities. These acquisitions not only contribute financially but also offer avenues for accelerated organic growth through expanded customer reach, regional penetration, and procurement efficiencies. Investors will likely track the realization of these synergies and their impact on earnings growth.

Supply Chain and Inflation Challenges Mitigated Amid Middle East Conflict

Flowtech has actively managed supply chain disruptions and inflationary pressures stemming from the Middle East conflict through commercial and operational initiatives. While specific measures were not detailed, the company indicated actions such as pricing adjustments, supply chain optimization, and procurement strategies have helped control margin pressures, maintain product availability, and uphold customer service standards. The group’s ability to sustain double-digit organic growth and market share gains despite these challenges reflects operational resilience and effective management.

However, the company cautions that market conditions are expected to remain difficult in H2 2026. The upcoming interim results on 8 September 2026 will provide detailed insights into EBITDA, operating profit, and pre-tax profit, clarifying the extent of margin impact and mitigation effectiveness.

Bridge Infrastructure Projects to Boost H2 2026 Revenue

Two major bridge infrastructure projects, initially anticipated to contribute in H1 2026, are now expected to be weighted towards H2 2026, suggesting a shift in revenue timing. Although project values and exact contributions were not disclosed, the group anticipates strong cash generation in H2 driven by these projects, earnings growth, and seasonal working capital unwinding.

With a robust sales pipeline and forward order book supported by new contracts and supplier agreements, the group is confident in a stronger H2 2026 performance. Increased exposure to high-growth sectors such as infrastructure, defence, and transportation may provide structural growth advantages. Investors should watch the H2 trading update and interim results to confirm realization of these project contributions and order conversion.

Digital Platform Expansion in Ireland and Benelux to Enhance Growth in Q3 2026

Flowtech’s digital investment strategy is gaining momentum. Following the successful UK launch of its website and e-commerce platform in Q3 2025, which boosted customer engagement and revenue, the platform will be extended to Ireland and Benelux in Q3 2026. This expansion aims to strengthen the group’s digital customer proposition and support organic growth across all regions.

The digital platform is one of four strategic sales growth levers alongside product and service expansion, engineering projects, and acquisitions. Combined with sector diversification, these initiatives underpin confidence in continued revenue and profit growth in H2 2026. While the company has not provided revenue or profit forecasts linked to the digital rollout, forthcoming updates will shed light on its financial impact and return on investment.

Net Debt Declines to a316.5 Million, Enhancing Financial Flexibility

Pre-IFRS 16 net debt stood at a316.5 million as of 30 June 2026, down from a318.5 million a year earlier and a315.2 million at 31 December 2025. The group maintains a325 million in committed banking facilities through 2029, with a38.5 million available headroom, allowing capacity for further financing if needed. The year-on-year net debt reduction, despite five acquisitions, indicates strong cash flow generation and ongoing deleveraging.

Strong cash generation is expected in H2 2026, driven by earnings growth, infrastructure project inflows, and seasonal working capital release. The group anticipates a material net debt reduction by year-end, improving leverage alongside EBITDA growth. These factors suggest prudent capital management and low covenant risk in the near to medium term.

Market Consensus for FY 2026 Projects a3136.8 Million Revenue and a310.2 Million EBITDA

Market expectations compiled by Flowtech anticipate full-year 2026 revenue of a3136.8 million, underlying EBITDA of a310.2 million, and net debt of a311.3 million (excluding IFRS 16). This implies H2 2026 revenue of about a366.4 million, slightly below H1’s a370.4 million, though the timing of major infrastructure projects may influence this comparison.

The implied full-year EBITDA margin is approximately 7.5%. As H1 EBITDA figures are undisclosed, investors await the 8 September interim results for clarity on margin trends and profitability.

Strategic Outlook Highlights Scalable Platform and Long-Term Value Creation

Despite macroeconomic challenges, the Board expressed satisfaction with H1 2026 results and confidence in the group’s strategic positioning for the remainder of the year. With a stronger order book, advancing digital capabilities, and acquisitions exceeding expectations, Flowtech is well placed for continued growth in H2 and beyond.

The group emphasizes its scalable operating platform that drives market share gains, margin improvement, and successful acquisition integration, aiming to create sustainable shareholder value through organic and acquisition-led growth. Positioned within the a330 billion European hydraulics, pneumatics, and process engineering market, Flowtech’s strategy centers on digital investment and disciplined expansion. Investors should monitor progress on organic growth and earnings accretion from acquisitions.

Upcoming Interim Results and Investor Presentation on 8 September 2026

Flowtech will release unaudited interim results for the six months ended 30 June 2026 on Tuesday, 8 September 2026. Results will be accessible via the company website at https://flowtech.co.uk/investor-hub. A live presentation featuring CEO Mike England and CFO Russell Cash will be held on the Investor Meet Company platform at 10:00 am BST, with registration available through the portal.

Supported by Panmure Liberum (Nominated Adviser and Joint Broker) and Singer Capital Markets (Joint Broker), the investor relations program facilitates corporate access and queries. The live event will enable real-time engagement, allowing investors to question management’s outlook and financial projections.