Oxford Instruments (OXIG) H1 2026 earnings summary

Executive summary

• Strategic progress achieved through operational simplification, commercial execution, and regional realignment, despite significant Q1 disruption from tariffs and US academic funding cuts; order momentum recovered in Q2.

• Advanced Technologies division delivered 25%+ order growth, driven by compound semiconductor demand and commercial customer focus, with new cleanroom capacity supporting growth.

• Imaging & Analysis faced Q1 order and revenue drop due to tariffs and funding cuts, but Q2 saw stabilization and cost restructuring.

• Sale of NanoScience business progressing, with proceeds expected in H2/Q3 to strengthen balance sheet and focus on higher-margin segments.

• Share buyback program extended by £50m to £100m, with £32m completed by 31 October, reflecting confidence in financial position.

Financial highlights

• H1 revenue declined 7.9%–9.2% OCC to £185.5m, with order intake flat at £205.2m; adjusted operating profit fell 22.9%–30% to £24.7m.

• Gross margin stable at 55%; adjusted operating margin declined to 13.3%; free cash flow improved to £0.2m from a £7.1m outflow.

• Interim dividend increased 5.9% to 5.4p per share.

• Net cash at period end was £45.1m, with £57m from NanoScience sale pending.

• Statutory profit after tax from continuing operations dropped 40.6% to £15.1m.

Outlook and guidance

• H2 expected to be stronger, with margin improvement from cost actions and order recovery; Advanced Technologies H2 revenue projected to grow in the mid-teens, Imaging & Analysis H2 revenue expected flat year-over-year.

• Full-year adjusted operating profit anticipated broadly in line with prior year on OCC basis, with a reported decline of 6–9% due to FX headwinds.

• Margin improvement supported by £4m cost benefits from Belfast restructuring; currency headwinds expected to impact full-year results by £5.5m, but hedging limits further risk.

• Confident in achieving medium-term targets, with operational leverage and cost actions supporting margin expansion.

• Macro and tariff uncertainties persist; further trading update scheduled for January 2026.