Renishaw (RSW) H2 2026 earnings summary

Executive summary

• Achieved strong and record revenue and profit growth across all business areas, driven by AI-fueled semiconductor investment, innovation, and successful new product launches.

• Innovation-led strategy, targeted capacity investments, and disciplined investment position the group well for future growth in cyclical industries.

• Focus remains on organic growth, with selective, small, bolt-on M&A to complement the core business.

Financial highlights

• Revenue increased 14% year-over-year to £816 million (17% at constant FX).

• Adjusted operating profit rose 36% to £153 million, with margin up 3 points to 18.7%.

• EPS grew 30% year-over-year to 179.5p; proposed total dividend per share up 5% to 82.0p, plus a special dividend of £0.70 per share.

• Net cash increased by £17 million to £291 million; adjusted cash flow conversion at 79%.

• Return on invested capital improved to 17.5%, exceeding the 15% target.

Outlook and guidance

• Continued investment in capacity, especially for encoders, with CapEx set to double in FY 2027 (£65m–£75m planned).

• Order book continues to grow, especially in Position Measurement and additive manufacturing.

• Expect further strong progress in revenue, profit, and operating margin, but remain mindful of cyclical and macroeconomic risks.

• Long-term opportunities driven by structural market growth and robust R&D pipeline.