Renishaw (RSW) H2 2024 earnings summary

Executive summary

• Achieved record revenue of £691.3m, up 0.4% year-over-year, with H2 revenue 9% higher than H1 and a strong final quarter despite challenging semiconductor market and currency headwinds.

• Adjusted profit before tax fell 13% to £122.6m, mainly due to higher employee pay and adverse currency effects.

• Solid strategic progress with growth in systems sales and record Spectroscopy revenue.

• Maintained investment in engineering, sales, and manufacturing infrastructure to support long-term growth while focusing on efficiency and cost control.

Financial highlights

• Revenue increased 0.4% year-over-year to £691.3m; at constant currency, revenue would have been 3.7% higher.

• Adjusted operating profit margin was 15.7%, down from 18.9% last year.

• Adjusted EPS was 133.2p, down from 155.1p last year; statutory EPS also 133.2p.

• Final dividend per share maintained at 59.4p.

• Gross margin (excluding engineering costs) was 61%, down from 64% last year.

Outlook and guidance

• Expecting solid revenue growth and improved profitability in FY2025, driven by recovery in the semiconductor sector and growth in metrology and additive manufacturing.

• Anticipate improved operating profit margins through higher sales volumes and productivity focus, though inflationary pressures, especially people costs, may moderate near-term gains.

• Continued investment in long-term organic growth strategy.