UK Heatwave Spending Is Creating New Interest In Hill And Smith Stock

Repeated UK heatwaves have already erased an estimated £4.4b of economic output in 2026, and the debate is shifting from weather to hard cash. As employers wrestle with overheated offices, stressed infrastructure and calls for tighter rules, money is starting to follow solutions that keep cities and workers cooler. This article walks through three UK stocks exposed to that story and how the same trend could either help or hurt your portfolio.

The stocks covered below are just a starting sample, and the full screen surfaced 9 more UK companies tied to cooling, insulation and heat resilience that are not covered here but have equally compelling stories. If you want to identify the ideas that best fit your own risk, income and growth preferences, head straight into the Climate Adaptation & Cooling Infrastructure Stocks (UK-focused) screener.

Hill & Smith (LSE:HILS)

Hill & Smith is a long established infrastructure group that supplies everything from road safety barriers and hostile vehicle mitigation to galvanizing services that extend the life of steel used in bridges, lighting columns and other critical assets. The business is broadly split between US Engineered Solutions at about £416.6 million of revenue, UK & India Engineered Solutions at £239.4 million and Galvanizing Services at £212.8 million. The stock sits in mid cap territory with a market value of roughly £2.4b.

Investors looking at climate adaptation may wish to pay attention to Hill & Smith because a large part of its portfolio sits in areas where spending on cooler, safer cities is likely to be directed, including road safety hardware, urban structures and galvanizing that supports longer lasting infrastructure. The company has reported earnings growth, improving profit margins and recently guided 2026 operating profit to the top end of analyst expectations. It also carries a premium P/E, funding that relies fully on external borrowing and a board still bedding in after several new appointments. That mix of quality, climate linked exposure and valuation and governance questions makes Hill & Smith a stock that some investors may want to study in more detail before deciding how it fits into a heat resilience theme.

Hill & Smith’s earnings growth and premium P/E suggest a story that many investors might only be half seeing. Scan the analyst forecasts for Hill & Smith to see how that optimism lines up with one underappreciated twist in the outlook.

Build your own heat resilience shortlist around Hill & Smith

Hill & Smith and the other two stocks in this article came from a single screen, but the real value is in tailoring your own filters. Use our flexible Screener to mix valuation, growth, balance sheet and dividend factors to suit your style, or tap into our curated Investing Ideas for ready made starting points.

Marshalls (LSE:MSLH)

Marshalls is a long established UK manufacturer of paving, kerbs, drainage, roofing and street furniture that you see across public spaces, housing developments and commercial sites. Its products support everything from cooler, greener streets to water management and roof integrated solar systems, and the company currently carries a market value of about £435.2 million.

Marshalls sits at the intersection of several powerful shifts. Repeated UK heatwaves and the push for cooler cities point directly to its paving, water management and urban design products. Government backed green building standards and solar ready roofs highlight its Viridian Solar arm. At the same time, earnings have been affected by weak UK construction markets, higher costs and an unstable dividend. The company now trades below some estimated fair value metrics after being removed from major FTSE indices. For investors who can accept that mix of opportunity and pressure, Marshalls offers a focused way to gain exposure to climate adaptation that still divides opinion on how much recovery is already reflected in the price.

Marshalls looks caught between pressure on earnings and a cooler cities story that many investors may be underpricing. Scan the 2 key rewards and 2 important warning signs to see how that tension could be masking one crucial twist

Accsys Technologies (AIM:AXS)

Accsys Technologies produces high performance acetylated wood used in windows, doors, decking and cladding, aimed at builders and architects who want durable timber for exposed outdoor and urban environments. The business is highly focused on its Accoya segment, which delivered about €153 million of revenue, with sales spread across the UK and Ireland, the rest of Europe, the Americas and other international markets. The stock currently sits in small cap territory with a market value of roughly £176 million.

Accsys Technologies operates in climate resilient construction, offering durable timber that can replace tropical hardwoods in hotter, more weather-exposed cities. Recent results show the company moved from loss making to a modest €6.5 million profit on about €153 million of revenue. Analysts expect faster earnings growth than the wider UK market, even though the P/E is already higher than peers. However, the balance sheet leans entirely on external borrowing and the management team is still relatively new, so execution and financing risk are considerations. For investors who are comfortable with that trade off, Accsys provides exposure to both the heat adaptation theme and the shift to low carbon building materials, with several parts of the story still easy to miss at a quick glance.

Accsys Technologies has earnings that are starting to move, while risks around debt and execution still hang over the story. Pull up the analyst forecasts for Accsys Technologies to see what analysts might be factoring in that the market has not fully priced in yet.

Seeking Alternatives Before The Crowd

Fresh stock ideas often move from quiet to flying once the crowd catches on. Consider using this moment while it matters and, before momentum gets away from you, take time to evaluate your options.

• Spot companies building durable leadership while others hesitate by scanning 7 resilient stocks with low risk scores, which have already been filtered for balance sheet strength and measured risk profiles.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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