Oxford Instruments (OXIG) H1 2027 earnings summary

Executive summary

• H1 orders rose 44.3% OCC to £296.0m and revenue grew 9.0% OCC to £201.1m; adjusted operating profit increased 21.5% reported to £30.0m.

• Advanced Technologies demand and improving margins support FY27 delivery; FY28 revenue growth expectations were raised to ~20%.

Financial highlights

• Adjusted operating margin rose 160 bps reported to 14.9%; adjusted PBT increased 21.7% to £30.9m.

• Adjusted diluted EPS from continuing operations increased 29.1% to 42.2p; growth would have been 23.0% excluding the buyback-related share-count reduction.

• Free cash flow increased to £19.1m from £0.2m; net cash was £74.8m at H1 FY27 versus £45.1m a year earlier.

• Interim dividend increased 7.4% to 5.8p per share.

Outlook and guidance

• FY27 expectations remain on track; Advanced Technologies expects high-teens revenue growth and a high-single-digit adjusted operating margin, with FY27 revenue covered by orders.

• Advanced Technologies FY28 revenue growth is expected at ~20%, with margins in the 12%–15% medium-term range, assuming lead times remain stable.

• Imaging and Analysis expects low-single-digit FY27 revenue growth and broadly steady FY27 margin on an OCC basis, with ~120 bps FX headwind.

• Imaging and Analysis H2 revenue is expected to exceed H1 by 25% or more, supported by order-book cover.