Bodycote (BOY) Trading update summary

Trading performance and revenue growth

• Core revenue grew 9.0% at constant currency, led by Specialist Technologies and strong Aerospace & Defence and Industrial Gas Turbines growth.

• Group revenue increased 1.9% at constant currency, with Core business growth offset by plant exits under the Optimise programme.

• Specialist Technologies saw organic revenue growth of 16.5%, while Precision Heat Treatment rose 4.8%.

• Industrial Markets revenue was flat, with European strength offset by weaker US volumes; Automotive revenue declined due to lower global light vehicle production.

• Excluding the Spectrum acquisition, Core revenue grew 8.4% organically.

Strategic initiatives and operational progress

• Optimise programme on track, with 21 of 31 Non-Core plants exited and further 3 ceased operations.

• Spectrum acquisition integration largely completed, enhancing Aerospace & Defence capabilities.

• Operational excellence programme progressing at key plants; sales and marketing changes implemented.

• Major investment projects underway, focused on Aerospace & Defence, IGT, and Specialist Technologies.

• Ongoing evaluation of additional bolt-on M&A opportunities.

Share buyback and financial outlook

• £80m share buyback programme announced, with £6.6m spent on 1.0m shares between March and April 2026.

• Full year outlook maintained, expecting Core organic revenue growth and improved operating margins.

• Anticipates moderation in Core revenue growth in H2 due to tougher comparators.

• Elevated geopolitical and economic uncertainty acknowledged; focus on cost management and agility.