Oxford Instruments (OXIG) H1 2025 earnings summary

Executive summary

• Achieved 10.4% constant currency revenue growth in H1, driven by strong demand in semiconductors and materials analysis, offsetting healthcare and life science weakness.

• Both Imaging & Analysis and Advanced Technologies divisions delivered revenue growth; Imaging & Analysis up 6.0% and Advanced Technologies up 21.4% at constant currency.

• Strategic transformation, including operational improvements, divisional restructuring, and regional rebalancing, is delivering results and underpinning confidence in improved medium-term returns.

• Strong order book and positive book-to-bill ratio provide good visibility for H2.

• Interim dividend increased by 4.1% to 5.1p per share, reflecting confidence in future performance.

Financial highlights

• Group revenue rose to £225.8m (up 10.4% constant currency, 7.7% reported); adjusted operating profit at £33.9m (up 3.6% constant currency); statutory operating profit up 8.7% to £31.1m.

• Adjusted operating margin at constant currency decreased by 110bps to 16.3%; reported margin after currency effects was 15%.

• Adjusted EPS down 9.5% to 44.7p; basic EPS 41.6p (+7.8%).

• Net cash at period end was £39.3m, down from £83.8m, mainly due to working capital and acquisition payments; normalised cash conversion 17%.

• Currency headwinds reduced revenue by £5.8m and adjusted operating profit by £3.9m in H1.

Outlook and guidance

• Full-year outlook remains in line with expectations on a constant currency basis, supported by a strong order book and ongoing improvement actions.

• H2 expected to be stronger, supported by larger Advanced Technologies orders and efficiency gains.

• Net cash expected to increase in H2 as working capital reduces and cash conversion improves.

• Further currency headwinds anticipated in H2.

• Medium-term margin targets remain intact despite FX headwinds.