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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.
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H1 2025 earnings summary30 Jul, 2025

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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Frequently asked questions

Bodycote plc provides heat treatment and thermal processing services worldwide. The company operates in two Aerospace, Defence & Energy; and Automotive & General Industrial segments. It offers heat treatment services, including altering the microstructure of metals and alloys to impart properties comprising surface hardness, temperature resistance, ductility and strength; metal joining services consisting of electron beam welding, HIP diffusion bonding, hydrogen brazing, induction brazing and vacuum brazing; and hot isostatic pressing (HIP).

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