Rotork (ROR) H1 2026 earnings summary

Executive summary

• Delivered resilient H1 2026 performance with 1.3% OCC revenue growth and margin expansion, despite oil and gas disruptions and a challenging macro environment, driven by the Growth+ strategy and strong Target Segment, CPI, and Service growth.

• Service revenue increased to 24% of group revenue, supporting recurring, higher-quality income.

• Board agreed to a recommended cash acquisition by ABB at 506p per share, a 73% premium to the undisturbed share price, valuing the company at £4.1 billion, with completion expected in H1 2027.

Financial highlights

• Revenue: £367.2m, up 1.3% OCC; adjusted operating profit: £82.2m, up 4.1% OCC; adjusted operating margin: 22.4%, up 60bps OCC.

• Adjusted EPS: 7.4p, up 4.2%; cash conversion: 79%; ROCE: 36.5%.

• Interim dividend: 3.00p per share, up 1.7%; £40m returned via share buybacks.

• Net cash position at period end: £25.3m.

• Free cash flow: £22.4m; order intake: £371.8m, down 4.9% year-over-year.

Outlook and guidance

• Group outlook unchanged; further OCC progress expected in 2026.

• Oil & Gas recovery from Middle East disruption to be gradual; full-year divisional revenue expected slightly lower year-on-year.

• CPI expected to outperform original expectations, driven by strong data center and target segment demand.

• Water & Power outlook remains positive with robust order momentum and infrastructure investment.

• Ambition to deliver mid to high single-digit revenue growth and mid-20s adjusted operating margins over time.