Rotork (ROR) H1 2025 earnings summary

Executive summary

• Orders grew 6.3% OCC year-over-year, with all divisions ahead and a book-to-bill ratio of 1.06x, driven by the Growth Plus strategy and robust execution.

• Group revenue increased 3.3% OCC to £367.3m, with sales momentum accelerating late in the half.

• Adjusted operating margin rose to 22.0% (+140bps OCC), and return on capital employed remained high at 37%.

• Interim dividend increased 7.3% to 2.95p, reflecting confidence in ongoing performance.

• Outlook for end markets remains supportive, with full-year expectations unchanged.

Financial highlights

• Orders received were £391 million, up 6.3% OCC; revenue was £367.3 million, up 3.3% OCC and 1.6% reported, with a £10 million FX headwind.

• Adjusted operating profit was £80.8 million, up 10.1% OCC; adjusted EPS rose to 7.1p; interim dividend increased 7.3% to 2.95p.

• Cash conversion was 89%, down from prior year due to working capital investment; net cash at period end was £43 million.

• M&A and shareholder returns exceeded £100 million, including £42 million for Noah acquisition and £50 million buyback (of which £30 million by July).

• Working capital to sales: 26.4%.

Outlook and guidance

• Entering H2 with strong order book and improved sales momentum; full-year expectations unchanged.

• Currency headwinds expected at 3% of sales; capex and business transformation spend tracking to guidance.

• Growth Plus strategy and supportive end markets in water, power, and oil & gas expected to drive above-market growth.