Halma hits a record-breaking high

Halma, one of the top blue-chip companies in Britain, has set a new profit record

But might the outlook now be hampered by US tariffs?

Rober Lea of The Times claims that the "most consistent money-making machine" in the FTSE 100 has once again performed admirably. The stock of Halma, a conglomerate that prioritizes healthcare, safety, and environmental preservation, is close to its highest point ever.

There is "nothing to worry about" in the most recent results, despite earlier this year's concerns that US President Donald Trump's tariffs would affect the group 50 companies, which operate independently of one another. Profits increased by 16 percent and sales by 11 percent in the year ending March 31, 2025. Halma has now experienced "a 46th consecutive year of rising dividends and a 22nd consecutive year of profitable growth."

"Stellar across the board" is how Stephen Wright of The Motley Fool describes the most recent list of earnings figures. However, since the results only go through March 31st, they do not account for the effects of Trump's tariffs. Almost half of Halmas' sales come from the United States.

The majority of this revenue is generated by American businesses, who will not be directly impacted by tariffs. It may be more "challenging" to meet the group's projections, however, as the trade barriers will produce a "much more volatile trading environment" with a higher degree of uncertainty.

Diversification is what makes Halma strong.

According to Keith Bowman for Interactive Investor, the US tariffs' ripple effects on domestic businesses "may eventually result in reduced corporate spending," which could lower demand for Halmas products. Furthermore, changes in exchange rates are anticipated to impede advancements in the upcoming year.

However, a diverse range of products and geographical areas means that any shortcomings in one area could be offset by strengths in another. Furthermore, the fact that goods related to health and safety "are arguably required whatever the economic backdrop" gives this well-run company even more security. According to Matt Britzman of Hargreaves Lansdown, Halma is well-positioned to gain from "some resilient long-term growth drivers". These include "growing global efforts to address climate change, waste, and pollution, as well as tighter safety regulations and rising healthcare demand."

Even the AI boom has some bearing on it; one of its companies, which is essential to AI data centers, has seen especially robust growth. Together with the company's "stellar track record" of increasing dividends, Halmas' capacity to generate substantial sums of cash has also assisted in reducing debt, which should support future acquisitions.

According to Russ Mould of AJ Bells, however, an "enormous amount of good news" is now priced in because the stock is trading at 36 times forward earnings. Avoid "mistaking the reliability of Halmas business model for safety" if you're an investor. In the event of a wider, unanticipated market convulsion, the shares may be less safe the higher the valuation.