Renishaw plc (LON:RSW) has announced its preliminary announcement of results for the year ended 30 June 2025
FY2025 highlights
Record revenue and increased adjusted profit in challenging market conditions
· 3.7% constant currency revenue growth from diversified portfolio against a tough economic backdrop
· Accelerating innovation with new product introductions in established, emerging and new markets to underpin future growth
· Stable adjusted operating profit margins, with productivity initiatives and growth supporting improved gross margin (excl. engineering).
· Confidence in further progress towards margin improvement objective, supported by £20m annualised payroll reduction to take effect in FY26 H1, alongside £3m of annualised benefit from exiting Neurological drug delivery
· Continued strong cash generation and balance sheet
· Proposed full year dividend increased by 2.5%
Performance highlights
| Adjusted* | Statutory | ||||||
| FY2025 | FY2024 | Change | FY2025 | FY2024 | Change | ||
| Revenue (£m) | 713.0 | 691.3 | +3.1% | 713.0 | 691.3 | +3.1% | |
| Operating profit (£m) | 112.3 | 108.7 | +3.3% | 107.9 | 108.7 | -0.7% | |
| Operating profit margin (%) | 15.7% | 15.7% | – | 15.1% | 15.7% | -0.6% | |
| Profit before tax (£m) | 127.2 | 122.6 | +3.8% | 118.0 | 122.6 | -3.7% | |
| Earnings per share (pence) | 137.8 | 133.2 | +3.5% | 115.2 | 133.2 | -13.5% | |
| Dividend per share (pence) | 78.1 | 76.2 | +2.5% | ||||
Revenue was 3.1% higher at a record £713.0m (FY2024: £691.3m):
· Revenue at constant exchange rates, excluding the impact of forward contracts, was £25.8m (3.7%) higher than the previous year;
· Manufacturing technologies revenue was 3.6% higher at £671.5m, with good revenue growth from position encoders and 5-axis co-ordinate measuring machine systems, whilst demand for additive manufacturing (AM) systems was weaker; and
· Analytical instruments and medical devices revenue was 3.8% lower at £41.5m, with growth in neurological products being offset by lower sales of spectroscopy systems;
· 7.2% constant currency growth in APAC, including good growth in China; 2.2% growth in Americas, whilst EMEA revenues were flat.
Adjusted profit before tax was 3.8% higher at £127.2m (FY2024: £122.6m):
· Gross margin excluding engineering costs improved to 61.7% (FY2024: 61.0%);
· Gross engineering costs increased by 8.3% to £115.7m (excluding non-recurring costs) as we continue to invest in innovation, with distribution and administration costs both 3.0% and 2.7% higher respectively; and
· Adjusted operating profit was up 3.3% to £112.3m (FY2024: £108.7m), with adjusted operating profit margin flat at 15.7%; cost reduction plans and productivity initiatives implemented to move towards our 20% target.
Statutory profit before tax was 3.7% lower at £118.0m (FY2024: £122.6m).
· Non-recurring costs included in statutory profit before tax include a total of £4.4m relating to the closure of our Edinburgh research facility and the drug delivery aspect of our Neurological business, as well as £4.9m of provisions relating to other interest payable on historical and non-recurring tax matters.
Adjusted earnings per share were 3.5% higher at 137.8 pence (FY2024: 133.2 pence), whilst statutory earnings per share were 13.5% lower at 115.2 pence (FY2024: 133.2 pence).
· £9.2m of provisions relating to historical and non-recurring tax matters are included in statutory profit after tax.
Strong balance sheet with cash and cash equivalents and bank deposit balances of £273.6m, (FY2024: £217.8m):
· Invested £46.3m (FY2024: £65.2m) in capital expenditure, mostly plant and equipment to support manufacturing automation and capacity growth;
· Return on invested capital* increased to 12.6% (FY2024: 12.3%);
· Adjusted cash flow conversion from operating activities* exceeded target at 91% (FY2024: 70%); and
· Attention is increasingly focused on capital allocation priorities to support the next phase of the company’s development
Proposed final dividend of 61.3 pence per share.
*Note 29, Alternative performance measures, defines how each of these measures is calculated.
Will Lee, Chief Executive Officer, commented:
“I am pleased to report record revenue in FY2025, combined with an increase in adjusted profit before tax in what remain challenging market conditions. We continue to make solid progress with our innovation-led growth strategy, introducing many exciting new products this year and equipping our expanded manufacturing facilities for future growth.
There has been a steady start to FY2026, in line with our expectations. Despite the continued global uncertainty, the structural drivers that underpin our markets are presenting growth opportunities across our businesses and at this stage we are expecting to achieve further steady revenue growth in the year ahead.
We are focused on achieving our financial targets over time of high, single-digit average through-cycle revenue growth and adjusted operating profit margins of 20%. To improve our margins, we are continuing to invest in our IT transformation and productivity improvements, and we are reducing our fixed costs in relation to the size of the business with clear targets for production, engineering, distribution and administration costs.
The Board remains confident in our long-term sustainable growth model to drive shareholder value. This is built on solving customer problems with innovative products, global service and world-class in-house manufacturing.”
Strategic progress
Our ambition is to deliver high single-digit growth through the business cycle, combined with 20% operating margins, strong cash conversion and 15% return on invested capital. Our long-term value creation model explains how we will achieve these goals, including three areas of strategic focus:
1. Growing in our existing markets – aiming to increase revenue by driving up probe fitment levels, offering higher value sensors, and by winning more customers that build machinery.
• Introduced Opti-Logic™ technology in our twin probe system for machine tools, making it easier and faster to set up using a smartphone app.
• We saw strong demand for laser encoders for semiconductor wafer inspection this year. We launched our next generation of laser encoders with improved metrology performance and ‘plug-and-play’ functionality, making them easier to install and service.
2. Increasing the value of the technology we sell – aiming to provide our end-user customers with complete solutions to capture a greater proportion of their investment.
• Growth in sales of our AGILITY CMMs and Equator™ gauges, helped by the continuing trend for automation of process control on the shop-floor.
• Launched the RenAM 500D dual laser AM machine which, when fitted with our TEMPUS™ technology, prints up to three times faster than other single laser systems.
• Introduced the Equator-X™ dual method gauging system and MODUS IM Equator software at the end of the year, with full launch at the EMO Hannover exhibition in September 2025. The software will make Equator systems easier to use and help reduce distribution costs, with less need for applications support.
3. Extending into new, high-growth markets – aiming to diversify into close-adjacent markets where we have strong market understanding and brand awareness.
• Launched our ASTRiA™ inductive encoder line, which offers robust and accurate position measurement in harsh environments, including robotics, defence and medical devices.
Other strategic progress this year includes:
· First use of our new minimum viable product (MVP) approach which enables us to bring products to market faster and gain confidence before committing more development costs. This enabled us to rapidly develop and launch the ASTRiA encoder.
· Actively managed our portfolio, exiting the drug delivery aspect of our Neurological business, and continue to seek a new owner for the remaining neurosurgical activities.
· Initiated an operating cost reduction programme to achieve annualised payroll savings of £20m, taking effect in the first half of FY2026. Additional initiatives to help achieve our ambition include more manufacturing automation, prioritisation of R&D projects, and investments in IT systems and AI to increase productivity across the business.
Results presentation
See below a video presentation of these results, presented by Will Lee, Chief Executive Officer, and Allen Roberts, Group Finance Director.
Live Q&A session
There will be a live audio-only question and answer session with Will and Allen at 10:30 BST on 18 September 2025. Details of how to register for this webcast are available at the following link:
https://www.renishaw.com/en/register-for-the-2025-full-year-results-webcast–49863
Questions can be submitted during the webcast or in advance to communications@renishaw.com (if sending by email, please submit by 09:30 BST on 18 September).
A recording of the Q&A session will be made available by 19 September 2025 at: www.renishaw.com/investors.
