Judges Scientific (JDG) H2 2025 earnings summary

Executive summary

• FY2025 began strongly with robust Q1 performance, but was impacted by U.S. federal funding cuts, leading to lower order intake from Q2 onward, though long-term fundamentals remain intact.

• Growth in Asia and Europe, as well as industrial applications and new products, helped offset U.S. weakness.

• Management team strengthened with new CEO, succession planning, and additions to the acquisitions and portfolio executive teams.

• Portfolio remains diversified with robust cash conversion and a 10% dividend increase.

Financial highlights

• Total revenue up 9.1% year-over-year to £146m, with 6% organic growth and full-year contribution from 2024 acquisitions.

• Like-for-like organic revenue growth was only 2% excluding the Geotek coring expedition.

• Adjusted operating profit flat at £28m; adjusted EPS down 3% to 275.3p; Geotek contributed positively, but other organic businesses declined by a third.

• Cash from operations was £33m, with cash conversion at 118%; adjusted net debt reduced to £42.6m–£43.6m; leverage at 1.5x.

• Proposed final dividend of 82.3p per share, up 10%, for a full-year dividend of 115p.

• Statutory PAT fell to £6.0m from £10.8m due to higher adjusting items.

Outlook and guidance

• 2026 expected to remain challenging with lower order book and subdued order intake; geopolitical turbulence and U.S. federal funding uncertainties persist.

• U.S. federal funding restored to prior levels, but timing of fund flow remains uncertain.

• 2026 EPS guidance unchanged at 200–250p, excluding any Geotek coring expedition; next expedition expected in early 2027.

• Long-term demand drivers for scientific instrumentation remain robust.