RWS (RWS) H1 2026 earnings summary

Executive summary

• Achieved 7% organic constant currency revenue growth and double-digit profit growth, with adjusted operating profit up 28% year-over-year and strong cash conversion.

• Strategic pivot to an AI-first operating model, with AI-related products and services now comprising 32% of revenue, up from 26% last year.

• Leadership refresh included a new CFO and key appointments in Americas and India, alongside efficiency improvements and a refreshed go-to-market approach.

• Launched Language Weaver Pro, now the top-ranked enterprise translation engine, in partnership with Cohere.

• Acquired Obviously, expanding IP and brand protection capabilities and addressable market by GBP 2 billion.

Financial highlights

• H1 revenue reached GBP 360 million (GBP 360.3m), up 5% reported and 7% constant currency year-over-year.

• Adjusted operating profit up 28% to GBP 26.4 million; adjusted EBITDA up 20% to GBP 46 million.

• EBITDA margin expanded to 12.7%; adjusted EPS up 34% to GBP 0.049.

• Interim dividend of GBP 0.0175 declared, with a payout ratio of 25% and a progressive dividend policy.

• Net debt at period end GBP 32.5–33 million, with leverage below 0.5x EBITDA.

Outlook and guidance

• Full-year organic constant currency revenue growth guided to mid-single digits, with margin expansion expected.

• FY 2026 profit expected to be more balanced between H1 and H2, with H2 still stronger due to seasonality.

• Currency headwinds expected to impact net profitability by GBP 2–3 million; FX headwinds reduced reported growth by 2%.

• Obviously acquisition to have a small negative impact on PBT in FY 2026, turning profitable next year.

• Operational FCF conversion to normalize at 60–70%; trading in line with expectations.