Rotork (ROR) H2 2025 earnings summary

Executive summary

• Achieved strong order growth of 6% OCC and sales growth of 3.7% OCC, with all divisions contributing and outperforming mixed end markets through focus on target segments and service expansion.

• Adjusted operating profit rose 10% OCC, with margin expanding to 24.6% due to mix and operational efficiencies.

• ROCE increased to 38.4%, reflecting disciplined capital allocation and higher margins.

• Target Segments and Rotork Service outperformed underlying end markets, driving long-term growth.

• Accelerated capital deployment with £167m spent in 2025, maintaining a strong balance sheet.

Financial highlights

• Orders received: GBP 783 million, up 6% OCC year-over-year; revenue: GBP 777 million, up 3.7% OCC and 3% reported, with a GBP 15.9 million FX headwind.

• Adjusted operating profit: GBP 191.5 million, up 10% OCC; margin at 24.6%, up 140 bps.

• Adjusted EPS: GBP 0.17, up 6.9% reported; proposed dividend: GBP 0.083 per share, up 7.1%.

• Cash conversion remained robust at 101%, with closing net cash at GBP 65 million.

• Free cash flow: GBP 106.8 million, reflecting strong operational performance and disciplined investment.

Outlook and guidance

• Expect continued momentum in target segments and service for 2026, with mixed underlying end markets.

• Oil & gas expected to be stable with higher H2 weighting; CPI and water & power to see continued growth.

• Capital expenditure guidance for 2026: GBP 15 million; business transformation investment: GBP 25 million.

• FX impact expected to be neutral for 2026.