Renishaw (RSW) investor relations material

Strategic direction and market trends

• Focus on accelerating growth in both established and emerging businesses, underpinned by innovation, productivity, and disciplined R&D investment.

• Three key strategic themes: growing in existing markets, increasing technology value, and expanding into new markets, supported by a portfolio approach from early-stage R&D to market leadership.

• Addressable market has grown to over £7 billion, with diversification into sectors such as harsh environment encoders and additive manufacturing, and annual market growth exceeding 5%.

• Strong market presence in China and the USA, with tailored strategies for local demand, compliance, and evolving competition.

• Benefiting from positive investment cycles in semiconductors, defence, and electrification, with strong positions in aerospace, defence, medical, and electronics.

Financial guidance and performance

• Targets reaffirmed: high single-digit through-cycle revenue growth, >20% operating margin, >70% operating cash conversion, and >15% post-tax return on invested capital.

• Revenue growth is on track, driven by core and emerging businesses, with future upside from pricing strategies, focused R&D, and capacity expansion.

• Operating margins remain flat at 16% but are expected to improve through efficiency, automation, smarter pricing, and business simplification.

• Cash generation is a priority, with increased management focus, incentives, and disciplined CapEx and working capital management.

• Segment growth in FY26: Industrial Metrology 8%, Position Measurement 23%, Specialised Technologies 25%.

Innovation and product development

• Strong pipeline of innovations across machine tool probes, CMM sensors, position encoders, and shop floor metrology, with new products like Equator-X and MODUS IM driving customer value.

• New metrology sensors and advanced probing systems launching in FY27 to enhance machine tool capabilities.

• Next-generation optical and laser encoders target semiconductor and precision motion markets, with expansion into adjacent markets via inductive encoders.

• Shop-floor process control and software innovations are driving market share gains in metrology.

• AI tools are being adopted internally to boost software development productivity and strengthen software offerings.