RWS (RWS) H1 2025 earnings summary

Executive summary

• Revenue grew 1.4% at organic constant currency to £344.3m, with three of four divisions expanding and strong client retention at 94% repeat services revenue.

• Strategic transformation underway, including a technology-first repositioning, reorganization into three divisions (Generate, Transform, Protect), and key leadership hires.

• AI and technology-driven solutions now account for 26% of group revenues, with a strong focus on SaaS, automation, and operational efficiency.

• Interim dividend maintained at 2.45p per share, reflecting confidence in future prospects.

Financial highlights

• H1 2025 revenue reached £344.3m (+1.4% OCC), but reported revenue declined 2% YoY; adjusted EBITDA was £38.1m (down 41%), and adjusted PBT £18.0m (down 61%).

• Gross margin declined 240bps to 43.3%, mainly due to business mix, Regulated Industries' performance, and AI investment.

• Adjusted basic EPS fell 60% to 3.6p; cash conversion rose to 171%; net debt increased to £27.0m as of March 2025.

• CapEx was 3.4% of revenue, down from 6.4% in FY24.

Outlook and guidance

• Modest organic constant currency growth and gross margin expansion expected in H2 2025, with adjusted PBT guidance for FY25 at £60–70m, assuming GBP/USD rate of 1.33–1.35.

• Medium-term guidance and new KPIs to be shared at full-year results in December.

• Regulated Industries remains a drag, but specific large client issues are being addressed.