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Bodycote (BOY) investor relations material
Bodycote H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Revenue improved sequentially from the previous half despite challenging end markets, with Aerospace and Defense growth offsetting Automotive and Industrial weakness.
Strategic initiatives, including the expanded Optimize/Optimise program and new investments, progressed well, targeting future growth and cost benefits.
Announced a further £30m share buyback, supported by a strong balance sheet and low leverage.
Full-year outlook remains unchanged, with profit improvement expected in H2 and confidence in medium-term targets.
Statutory operating profit increased due to lower exceptional charges, despite lower revenues.
Financial highlights
Group revenue fell 7.5% year-over-year to £369.0m, but grew 4% sequentially; core revenue down 3.6% year-over-year.
Adjusted operating profit dropped to £55.1m (margin 14.9%), with adjusted EPS down to 21.3p.
Cash conversion remained healthy at 68%, with free cash flow at £18m and leverage at 0.6x net debt/EBITDA.
Interim dividend held at 6.9p per share; total shareholder returns for the period reached £60m.
Net debt (excluding leases) at £112.5m.
Outlook and guidance
Full-year outlook unchanged and in line with market expectations; H2 profit improvement expected from Optimize/Optimise benefits, Aerospace recovery, and new contracts.
Macro environment remains uncertain, but momentum improved in H1 with sequential growth in most end markets.
Optimize/Optimise program expected to deliver £4m–£5m profit benefit in FY25 and at least £15m run-rate benefit by mid-2027.
FX headwind now expected to be £3m for the year, with over half realized in H1.
FY25 operating profit consensus range: £115.7–123.0m.
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