Oxford Instruments (OXIG) H2 2025 earnings summary

Executive summary

• Achieved record revenue of £500.6m, up 6.5% year-over-year at constant currency, with double-digit profit growth and significant margin expansion.

• Strong commercial traction in semiconductors and materials analysis offset healthcare & life science weakness.

• Sale of the quantum-focused NanoScience business for £60m announced, supporting strategic focus and higher group margins, with most proceeds returned to shareholders via a £50m buyback.

• Simplified structure into two divisions: Imaging and Analysis, and Advanced Technologies, focusing on core markets.

• Robust order book and strong balance sheet with £84.4m net cash.

Financial highlights

• Adjusted operating profit rose to £82.2m (+10.8% OCC), with margin at 17.8% (+70bps OCC).

• Cash conversion rebounded to 89% from a low prior year result, exceeding the >85% target.

• Free cash flow improved to nearly £32m from £13.5m last year.

• Statutory profit before tax fell 44.2% to £39.8m due to non-recurring items and impairments.

• Imaging and Analysis margin improved by 60 bps to 24.7%; Advanced Technologies margin up 360 bps.

Outlook and guidance

• FY26 guidance: low to mid-single digit revenue growth OCC, margin progression of +30-60bps OCC, and adjusted effective tax rate ~25.5%.

• Continued FX headwind anticipated, especially in USD earnings, with projected impact of ~£9m on revenue and ~£4.5m on operating profit.

• CapEx to be £10-12m in FY26, declining further in FY27.

• R&D investment to remain at 8-9% of revenue.