Renishaw PLC announced its second‑half fiscal‑2026 results, showing revenue up 14% to GBP 816 million (17% on a constant‑currency basis). Adjusted operating profit rose 36% to GBP 153 million, lifting the operating margin to 18.7% from 15.7% a year earlier. Earnings per share increased 30% year‑over‑year.
Adjusted operating cash flow for the period was GBP 121 million and cash‑and‑deposit balances reached GBP 291 million, a GBP 17 million increase. Cash conversion stood at 79%, below the prior‑year 91% but above the 70% target, while the current ratio was 4.57. Return on invested capital moved back above 15% and return on equity was 8% over the trailing twelve months.
The board proposed a special dividend of GBP 0.70 per share and raised the regular dividend by 5%, noting that the special payout will reduce cash flow in the first half of FY2027 by roughly GBP 51 million.
Segment‑level performance showed Position Measurement revenue climbing 26% (29% at constant FX), with operating profit increasing more than 50% and margins expanding to 27.4%. Specialized Technologies revenue jumped 43% (46% FX‑adjusted), driving its operating margin up to 4.4% after an 18‑point gain. Industrial Metrology revenue grew 4% (7% FX‑adjusted) and maintained a margin just above 17%.
Capital expenditure is slated to roughly double in fiscal 2027, primarily to expand encoder manufacturing capacity, with new lines expected to be operational by the end of FY2027. The company reaffirmed medium‑term targets of high single‑digit revenue growth, operating margins at or above 20%, cash conversion of at least 70% and ROIC above 15%, citing an addressable market of up to GBP 7 billion.
Renishaw shares rose 3.61% to $5,735, trading near the 52‑week high of $5,810 within a range of $3,290 to $5,810. The market capitalization stands at approximately $5.5 billion.
CEO Will highlighted AI‑driven semiconductor investment as the primary growth catalyst, while CFO John cautioned that cyclical trends could reverse and emphasized a focus on sustainable, through‑cycle improvement across key performance metrics.
