Rotork plc (LON:RTO) has announced its 2025 interim results.
Growth+ drives order intake, full year expectations unchanged
| Adjusted highlights | H1 2025 | H1 2024 | % change | OCC2 % change |
| Order intake | £391.1m | £374.4m | +4.5% | +6.3% |
| Revenue | £367.3m | £361.4m | +1.6% | +3.3% |
| Adjusted1 operating profit | £80.8m | £76.5m | +5.7% | +10.1% |
| Adjusted1 operating margin | 22.0% | 21.2% | +80bps | +140bps |
| Adjusted1 basic earnings per share | 7.1p | 6.9p | +3.5% | +7.7% |
| Cash conversion3 | 89% | 106% | ||
| Reported highlights | H1 2025 | H1 2024 | % change | |
| Revenue | £367.3m | £361.4m | +1.6% | |
| Operating profit | £64.7m | £66.9m | -3.1% | |
| Operating margin | 17.6% | 18.5% | -90bps | |
| Profit before tax | £65.1m | £69.7m | -6.6% | |
| Basic earnings per share | 5.7p | 6.0p | -5.8% | |
| Interim dividend | 2.95p | 2.75p | +7.3% |
Summary
· Good H1 order intake despite a volatile macro backdrop, with 6.3% OCC growth year-on-year (YoY). All divisions experienced good order growth in H1, as a result of our Growth+ strategy
· Sales increased by 3.3% OCC YoY. The H1 book-to-bill4 ratio was 1.06x (2024: 1.04x), with an expected second half phasing of deliveries
· Adjusted operating profit grew 10.1% OCC YoY, with the adjusted operating margin at 22.0%, supported by Target Segment growth, mix and operational efficiencies
· ROCE3 of 37.0% (2024: 36.9%) remained at a high level, reflecting strong margins and a disciplined approach to capital allocation. The acquisition of Noah was completed and £22m was returned to shareholders via a share buyback (£30m by the end of July)
· The Board has declared an interim dividend of 2.95 pence per share (7.3% YoY growth) and we expect to complete the remaining portion of the buyback by the end of the year
Kiet Huynh, Rotork Chief Executive, commenting on the results, said:
“We’re pleased to see good first-half order growth across all divisions, underpinned by our Growth+ strategy. There was a particularly strong order performance in Water & Power driven by the Target Segment focus on markets such as water infrastructure and treatment. Sales momentum accelerated during the period and we are confident of further growth in the second half, supported by order-book visibility and our project pipeline.
The Group continues to benefit from our strategic focus, business model and the dedication of our people. Growth+ is driving results, with Target Segment sales up 7% and Rotork Service growing ahead of the group, now contributing 23% of Group revenues. With a strong balance sheet, we’re confident that we will continue to grow shareholder returns and can pursue value-accretive opportunities through bolt-on M&A and share buybacks.
Looking ahead, our full year expectations are unchanged and we continue to anticipate 2025 to be another year of progress on an OCC basis.”
1 Adjusted3 figures exclude the amortisation of acquired intangible assets and other adjustments (see note 2).
2 OCC3 is organic constant currency results which exclude acquired businesses and are restated at 2025 H1 average exchange rates.
3 Adjusted figures, organic constant currency (‘OCC’) figures, cash conversion and ROCE are alternative performance measures and are used consistently throughout these results. They are defined in full and reconciled to the reported measures in note 2.
4 Book-to-bill ratio (BtB) is calculated as orders received in the period divided by revenue in the period.
