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Bodycote (BOY) investor relations material
Bodycote H2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Delivered stable core revenues in 2025, down 0.3% organically, with stronger momentum in the second half, especially in Aerospace & Defense.
Achieved return to organic revenue growth in H2 FY25 despite mixed end market conditions, with strong execution of the Optimise, Perform & Grow strategy and improved portfolio quality through non-core closures and disposals.
Aerospace & Defence growth accelerated, now comprising 34% of core revenues, while Automotive & Industrial markets remained challenging and Oil & Gas demand slowed.
Significant portfolio actions: 10 site disposals in France, 8 closures, and a strategic aerospace acquisition in the U.S.
Healthy balance sheet with leverage at 0.6x and GBP 100 million returned to shareholders via dividends and buybacks.
Financial highlights
Core revenue declined 0.3% year-over-year; H2 core revenue up 3.2% year-over-year.
Core operating profit fell 8.5% to GBP 113 million; core margin down 160 bps to 16.8%.
Adjusted EPS down 8.6% to GBP 0.444, impacted by lower profit and higher tax.
Group revenues GBP 727 million, down just over 2% organically; group margin at 15.7%.
Cash conversion at 78%; free cash flow GBP 47.5 million; net debt/EBITDA at 0.6x.
Outlook and guidance
Expect return to core organic revenue growth and margin expansion in 2026, led by Aerospace & Defense and industrial gas turbines.
Operating margins anticipated to improve with volume growth and further Optimise benefits, partly offset by normalisation of variable remuneration.
CapEx to remain elevated, with 60% for maintenance and 40% for growth; FY26 guidance is GBP 80–90 million.
Oil and gas headwinds to diminish, supporting growth in Specialist Technologies.
Confident in medium-term targets and margin improvement from ongoing initiatives despite geopolitical uncertainty.
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