Rotork (ROR) H2 2024 earnings summary

Executive summary

• Achieved 8.2% organic constant currency sales growth in 2024, driven by the Growth Plus strategy and strong performance across all divisions.

• Adjusted operating margin increased to 23.6%, with return on capital employed rising to 37.3%.

• Rotork Service outperformed, contributing 23% of group revenues and growing faster than the group.

• Announced and completed the acquisition of NOAH Actuation, complementing the product portfolio and supporting target segment strategy.

• Announced a £50 million share buyback for 2025.

Financial highlights

• Group revenue reached £754 million, up 8.2% OCC and 4.9% reported, with a £24 million FX headwind.

• Adjusted operating profit rose 8.5% to £178 million; margin increased 70 bps to 23.6%.

• Adjusted EPS increased 8.7% to 15.9p; return on capital improved to 37.3%.

• Free cash flow after organic investment was £120 million, up 5.4% year-over-year.

• Net cash position of £125 million at year-end.

Outlook and guidance

• Entered 2025 with strong order intake and positive momentum across all divisions.

• Currency headwinds of 1–2% of sales expected in 2025.

• CapEx to normalize at £15 million post-China factory investment; business transformation spend to rise to £30 million in 2025.

• Confident in delivering mid to high single-digit revenue growth and mid-20s operating margin over time.