Renishaw (RSW) H1 2025 (Q&A) earnings summary

Executive summary

• Interim results for H1 FY2025 show 3% revenue growth to £341.4m, with improved order intake in semiconductors, consumer electronics, and aerospace, but challenges in German and Taiwanese machine tool markets.

• Operating profit increased 9% to £51.6m, profit before tax up 2% to £57.5m, and EPS rose to 63.2p.

• Strong cash flow conversion at 100% and cash/bank deposits of £233.2m, with record-level cash conversion and lower CapEx after major investments.

• Interim dividend maintained at 16.8p per share.

• Passing of Sir David McMurtry noted, with succession planning and continued family involvement in governance.

Financial highlights

• H1 FY2025 revenue was £341.4m (+3% year-over-year); Americas +8%, EMEA +5%, APAC flat.

• Operating profit: £51.6m (+9%); profit before tax: £57.5m (+2%); EPS: 63.2p.

• Gross margin (excluding engineering costs) improved by 1% to 61.5%; operating margin at 15.1%.

• H1 included £5.5m in one-off costs: £2m supply chain, £1.8m restructuring, £1.7m currency losses.

• Adjusted cash flow from operating activities: £51.5m (+125%).

Outlook and guidance

• FY2025 revenue expected between £695m and £735m; adjusted profit before tax £105m–£135m.

• H2 2025 revenue guidance is £354–394m, representing -2% to +9% year-over-year.

• H2 adjusted profit guidance is £47.5–77.5m, with a wide range due to revenue sensitivity and high fixed costs.

• Focus on growth opportunities, productivity improvements, and driving operating margins above 20% medium-term.

• No expectation of recurring supply chain or restructuring costs in H2, but contingency for unexpected costs remains.