Renishaw (RSW) H2 2025 earnings summary

Executive summary

• Achieved record revenue and increased adjusted profit before tax in FY 2025 despite challenging market conditions.

• Strong cash generation and focus on improving operating margins and return on capital.

• Innovation and new product launches, such as Equator X gauge, Modus I'm software, and ASTRIA™ inductive encoder, targeted specific market opportunities and new markets.

• Strategic focus on profitable growth, cost reduction, and operational efficiency to underpin future performance.

Financial highlights

• Revenue rose by 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%.

• Adjusted cash flow conversion from operating activities improved by 21% to 91%, exceeding the 70% target.

Outlook and guidance

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

• Confident in long-term sustainable growth, supported by structural market drivers and accelerated innovation.

• Focused on achieving financial targets and further productivity improvements, including continued investment in IT.