A British manufacturer of health and safety technology equipment saw its stock value plummet nearly 15% on Thursday after announcing reduced revenue growth projections for fiscal 2027.
Halma, which produces health and safety devices, announced it anticipates low double-digit percentage organic revenue growth in constant currency for the year ending March 2027. This represents a significant slowdown from the 16% organic growth the company achieved in fiscal 2026.
The company has experienced strong performance largely due to its photonics division, which develops light-based technology for sensors and monitoring equipment. This includes systems used in data centers, where demand has surged due to artificial intelligence expansion.
However, analysts expressed concern about the future outlook. The company’s projections include approximately five percentage points of growth from the photonics division, which JP Morgan analysts indicated would likely disappoint investors.
Morningstar analyst Matthew Donen noted that Halma’s forecast suggests declining revenue growth rates for both the photonics division and other company segments.
Trading on the FTSE 100 index showed Halma shares falling to 3,962 pence as of 0825 GMT, making it the worst performer among blue-chip stocks that day.
Despite the concerning projections, the company reported strong results for the year that concluded March 31, with adjusted pretax profit climbing 23% to reach £564.5 million ($755.2 million).
