Speedy Hire (SDY) H1 2026 earnings summary

Executive summary

• Achieved significant strategic and operational progress, with the Velocity Strategy's enable phase concluding this year and a transformational commercial agreement with ProService, the largest in company history, now live.

• Secured over £90 million in annualized revenue opportunity through new long-term contracts, including ProService, providing greater revenue visibility.

• Maintained resilient H1 performance despite subdued market conditions, with an interim dividend of 0.30p per share recommended.

• Gained market share and secured major long-term contracts, including a new framework with Thames Water.

• Divested non-core and loss-making operations to focus on core business.

Financial highlights

• Revenue increased 0.8% year-over-year to £205.2m for the six months ended 30 September 2025; hire revenue declined 1.7-1.8% while services revenue (excluding fuel) rose 10.6%.

• Adjusted EBITDA declined 12.4% to £38.7m, with margin down to 18.9% from 21.7%.

• Operating profit (EBITA) fell to £3.6m from £9.3m, with EBITA margin down to 1.8% from 4.6%.

• Free cash flow improved to £3.7m from a £1.6m outflow; net debt increased to £118.9m, with leverage at 2.2x.

• Gross margin slightly declined to 54.8% due to product mix; overheads increased by 4%.

Outlook and guidance

• Board expectations for FY2026 remain unchanged, with a strong second half weighting to revenue and profits anticipated.

• Recent contract wins, including ProService and Thames Water, are expected to offset subdued market conditions.

• Anticipate meaningful deleveraging over the next 12-24 months, targeting leverage in the 1.0-2.0x range.

• Free cash flow for the full year expected at £7-8 million.

• October and November trading in line with expectations; group is well positioned for market recovery.