Capital Goods U.K. Community

Update as of 13 May: Amidst the tariff chaos and thus increased uncertainty about underlying growth trends, and after Balfour's recent quarterly report, I lowered exp. revenue growth to 12 per cent p.a., increased profit margins just a notch to 3.5 per cent and reduced the discount rate slightly to 9 per cent, still resulting in a fair value close to 600p.

Key Takeaways EU hydrogen strategy could boost ITM's revenues due to increased demand for their technology as electrolyzer capacity expands. Operational improvements and strategic initiatives enhance margins, revenue growth, and competitiveness while preserving cash flow.

Key Takeaways Revenue growth remains vulnerable to delays in government projects and rapid regulatory or technological change, potentially leading to stranded assets and margin erosion. Rising competition, compliance costs, and digitization threaten to compress rental rates, restrict market share gains, and pressure long-term profitability.

Key Takeaways Advanced digitalization and AI-driven strategies position Speedy Hire for expanded margins, organic growth, and outsized market share as infrastructure and decarbonization trends accelerate. Diversification into higher-margin, less cyclical business streams and specialist services boosts earnings resilience and supports sustained returns amid evolving market and regulatory pressures.

Key Takeaways A robust secured work pipeline indicates a stable, long-term revenue stream, bolstering confidence in growth and profitability. Strategic focus on expanding markets and key contracts in various sectors drives anticipated revenue and profit increases by 2027.

Key Takeaways Strong backlog and focus on high-growth sectors like energy infrastructure position Balfour Beatty for long-term revenue and margin improvement. Strategic diversification and investment in digitalization enhance operational efficiency and support sustainable earnings growth, particularly in the U.S. market.

Key Takeaways Refocus on higher-margin engineered components and investments in advanced manufacturing should drive margin expansion and long-term profitability. Strengthened position in aerospace, defense, and electrified vehicle markets diversifies revenue streams, supporting resilience and above-market growth.

Key Takeaways Strategic acquisitions and sector diversification are set to enhance revenue, market position, and long-term financial growth. In-house supply and innovative client services could improve margins and differentiation from competitors.

Key Takeaways Robust infrastructure and climate adaptation spending, combined with operational improvements, are supporting revenue growth and recovery in profitability across key regions. Diversification into new markets and investments in efficiency and digitalization are expected to reduce earnings volatility and drive sustainable margin growth.