Renishaw (RSW) H2 2025 earnings summary

Executive summary

• Achieved record revenue and increased adjusted profit before tax despite challenging market conditions.

• Launched several key new products, including Equator-X gauge, MODUS IM software, and ASTRIA™ inductive encoder, targeting growth opportunities and new markets.

• Implemented cost reduction actions, reducing annualized operating costs by around 3% of revenue through business closures and cost programs.

• Maintained focus on profitable growth, a leaner business structure, and improving operating margins and return on capital.

• Strong cash generation supported ongoing investment and margin improvement initiatives.

Financial highlights

• Revenue rose 3.1% to £713 million at reported exchange rates; constant currency growth was 3.7%.

• Adjusted profit before tax was £127.2 million, up 3.8% year-over-year.

• Adjusted operating profit margin held steady at 15.7%.

• Gross margin (excluding engineering) improved by 0.7% to 61.7%.

• Full year dividend increased by 2.5% to £0.781 per share (78.1p).

• Cash and equivalents at year-end were £273.6 million.

Outlook and guidance

• Expecting steady revenue growth in FY 2026, with a steady start to the year.

• Targeting operating profit margins in excess of 20% over time.

• Confident in long-term sustainable growth model and structural market drivers.

• Continued focus on innovation, productivity improvements, IT investment, and cost control to achieve financial targets.