Renishaw plc        

 

11 February 2026

HALF YEAR RESULTS FY2026

 

Renishaw, a world leader in measuring and manufacturing systems, today announces its interim results for the six months ended 31 December 2025 (H1 FY2026).

 

Strong H1 performance and a growing order book

 

 

Will Lee, Chief Executive Officer, commented:

 

"We have made strong progress in the first half, with a notable pick-up in revenue and order intake in Q2 and improving profitability. It is pleasing to see revenue growth in all three business segments, with significant progress in our emerging product lines. Our markets present significant structural growth opportunities, and we are excited about the prospects for the innovative products that we have recently launched. We enter H2 with momentum and we expect to achieve strong revenue and profit growth in the remainder of the year."

 

Performance highlights

	Adjusted* (see note 12)						Statutory
	H1 FY2026	H1 FY2025	Growth	Constant FX growth		H1 FY2026		H1 FY2025		Growth
Revenue (£m)	365.6	341.4	7.1%	11.5%		365.6		341.4		7.1%
Operating profit (£m)	57.5	51.6	11.4%	49.6%		40.1		51.6		(22.3%)
Operating profit margin (%)	15.7%	15.1%	0.6%pt			11.0%		15.1%		(4.1%pt)
Profit before tax (£m)	64.1	57.5	11.5%			46.0		57.5		(20.0%)
Earnings per share (pence)	68.8	63.2	8.9%			49.9		63.2		(21.0%)
Dividend per share (pence)	16.8	16.8	-
Return on invested capital (%)	13.2%	12.6%	0.6%pt
Adjusted cash flow conversion from operating activities (%)	68%	100%	(32%pt)			Note: %pt = percentage points

 

·      Strong revenue growth: 7.1% at actual exchange rates, 11.5% at constant currency*.

·      Record Q2 revenue, 14.1% higher than Q1, with further strengthening of the order book.

·      Revenue growth in all segments, with strong growth in the Americas and APAC regions.

·      Strong growth in defence and semiconductor sectors.

·      Emerging product lines continue to gain traction, notably co-ordinate measuring machine and gauging systems, additive manufacturing (AM) systems, and enclosed optical encoders.

·      1.4% of H1 growth is attributable to higher pricing to wholly offset tariff duties in the USA.

·      Average through-cycle revenue growth rising to 7.8% (5-year CAGR since H1 FY2021).

·      Adjusted operating profit margin* rose 0.6%pt to 15.7%.

·      4.4%pt of organic margin improvement from fixed cost reduction, productivity initiatives and operational leverage, offset by (3.8%pt) of headwinds from currency and tariffs.

·      Adjusted profit before tax* growth: 11.5%.

·      Statutory profit before tax was 20.0% lower, including £18.0m of redundancy and impairment costs relating to previously announced restructuring activities, and other one-off costs.

·      Adjusted cash flow conversion from operating activities*: 68% (H1 FY2025: 100%), with lower capital expenditure offset by higher working capital to support record Q2 sales and a growing order book.

·      Strong balance sheet with cash and deposit balances of £240.9m (FY2025: £273.6m), reflecting full-year dividend, working capital investment and restructuring outflows.

·      Return on invested capital* increased by 0.6%pt to 13.2%.

·      Interim dividend maintained at 16.8 pence per share

* Refer to note 12, which defines how alternative performance measures are calculated.

 

 

Outlook for FY2026

We expect the market backdrop in the remainder of FY2026 to continue to be mixed, with ongoing strong demand across specific sectors and product lines offsetting more subdued conditions in general industrial markets. We built strong momentum through the first half of FY2026, with positive contributions from our emerging products, delivering growth in each segment and a significant further growth of our order book. Whilst we are mindful of ongoing economic and geopolitical uncertainties, our positive momentum has continued in the early part of Q3, and we are confident of achieving strong growth for the year as a whole.

 

Our second half is normally stronger than H1 and that pattern is likely to continue this year. We currently expect to deliver FY2026 full-year performance in the following ranges: 

·      Revenue:                                        £740m to £780m

·      Adjusted profit before tax*:             £132m to £157m

 

 

About Renishaw

We are a world leading supplier of measuring and manufacturing systems. Our products give high accuracy and precision, gathering data to provide customers and end users with traceability and confidence in what they're making. This technology also helps our customers to innovate their products and processes. We are a global business, with customer-facing locations across our three sales regions; the Americas, EMEA, and APAC. Most of our R&D work takes place in the UK, with our largest manufacturing sites located in the UK, Ireland and India. Further information can be found at www.renishaw.com.

 

Results webcast

Will Lee, Chief Executive Officer, and Marc Saunders, Director of Group Strategic Development, will host a results presentation and Q&A session at 08:30 GMT today, which will be broadcast live via a webcast. Details of how to register for this webcast are available at: https://stream.brrmedia.co.uk/broadcast/6968c43021449c0013b7966c

A recording of the presentation and Q&A session will be made available by 12 February 2026 at: www.renishaw.com/investors.

 

Enquiries: [email protected]

 

 

Group operating performance review

Strong first half performance, carrying momentum into H2

We delivered strong revenue and profit growth combined with a substantially higher order intake in the first half of the 2026 financial year. Following steady sales in Q1, demand picked up notably in Q2, resulting in record quarterly revenue and a further significant strengthening of our order book. Against a backdrop of mixed market conditions and continuing uncertainty in the economic and geopolitical environment, we have achieved record revenue for a H1 period, and we enter H2 with momentum.

This performance has been underpinned by strong execution of our growth strategy, which targets high single-digit average through-cycle organic revenue growth. We pursue leading positions in a broad and expanding range of high-growth markets for our portfolio of sensor and software-enabled systems products. Our attractive markets are supported by four structural growth drivers: increasing precision of manufacturing processes, rising industrial automation to tackle skills shortages, electrification and digitalisation of industries, and decarbonisation of manufacturing. We aim to out-perform these markets by growing our established businesses, increasing the value of the technology we sell, and diversifying into close-adjacent markets. Our innovative technologies, global sales organisation and customer focus enables us to access diverse growth opportunities, benefitting from strong demand uplift in the semiconductor, defence and electrification sectors.

We have seen building momentum in demand for our established position encoder products in the first half of FY2026, as we see rising demand from existing accounts and as we continue to win new customers. A substantial proportion of our growth in this period has come from our emerging metrology and additive manufacturing systems and software, where we are gaining market share with innovative solutions. We are also seeing pleasing growth in some of our emerging sensor product lines, such as our enclosed optical and inductive position encoders, that allow us to address new markets.

Record H1 revenue

Segmental revenue (£m)	Q1 FY2026	Q2 FY2026	H1 FY2026	H1 FY2025	Growth	Constant FX growth
Industrial Metrology	102.0	110.1	212.1	203.3	4.3%	8.8%
Position Measurement	52.1	58.4	110.5	102.9	7.4%	11.9%
Specialised Technologies	16.7	26.3	43.0	35.2	22.2%	25.9%
Group	170.8	194.8	365.6	341.4	7.1%	11.5%

Revenue increased by 7.1% to £365.6m (H1 FY2025: £341.4m) and was a record for the H1 period. Sales in Q2 were also a record for any quarter at £194.8m, 14.1% stronger than Q1. Growth was broadly based, with all three reporting segments delivering growth, and Specialised Technologies performing particularly strongly.

Regional revenue (£m)	Q1 FY2026	Q2 FY2026	H1 FY2026	H1 FY2025	Growth	Constant FX growth
APAC	84.4	93.6	178.0	161.4	10.3%	16.9%
EMEA	42.6	54.4	97.0	102.3	(5.2%)	(5.5%)
Americas	43.8	46.8	90.6	77.7	16.6%	22.9%
Group	170.8	194.8	365.6	341.4	7.1%	11.5%

Regionally, the picture was more mixed, with strong growth in the Americas and APAC regions, whilst revenue in EMEA was below the prior year. Growth in the Americas was driven by strong demand for high-value capital equipment sales, including 5-axis co-ordinate measuring machines (CMMs) and additive manufacturing machines, whilst also benefitting from c. £5m (6%) in surcharges and price rises to offset new tariff duties. In APAC, we have seen rising demand for position encoders from semiconductor and electronics manufacturing equipment builders, as well as strong demand for Equator™ shop floor gauging systems from consumer electronics subcontract manufacturers. Market demand in EMEA has been softer than the other regions, but the order intake improved notably in Q2. H1 revenues in EMEA were impacted adversely by the transition to a new sales ERP system in some territories in September 2025, and whilst this resulted in some disruption to customer deliveries, activity levels increased substantially in Q2.

 

H1 revenue growth at constant currency for the Group was 11.5%, 4.4%pt higher than growth at actual exchange rates. This difference is partly a result of a stronger GBP against the USD, but mostly due to an £8.0m reduction in forward currency contract income compared to H1 FY2025. The prior period included significant gains from contracts that were struck at favourable rates following volatility in currency markets arising from the September 2022 UK 'mini Budget'.

 

Operating profit and costs

Adjusted operating profit for the period was £57.5m, 11.4% above the prior year. This amounts to 15.7% of revenue, a 0.6%pt improvement from 15.1% last year, and against our target of 20.0%. Adjusted operating profit at constant exchange rates* was 49.6% higher than the previous year.

 

Adjusted operating profit margin bridge

 

We have faced a total of 3.8%pt of margin headwinds from external factors. An £8.0m deficit in forward currency contract income combined with a £5.2m profit impact from adverse exchange rate movements to create a substantial 3.6%pt currency headwind. New US tariff costs of c. £5m were wholly offset by surcharges and pricing, with no impact on operating profit, but a small reduction in profit margin. 

 

We achieved 4.4%pt of organic margin growth from a combination of fixed cost reduction, productivity initiatives and operating leverage.

 

Our operating cost reduction programme and restructuring of our neurological business have yielded a combined 2.4%pt of margin improvement in H1. Group headcount has reduced from 5,347 on 30 June to 4,975 on 31 December, resulting in c. £9m of cost savings during H1 FY2026, with ongoing annualised savings expected to be c. £23m p.a. as planned. This will be partially offset by the impact of our January 2026 pay review, which will result in c. £5m of higher pay in H2. 

 

We have also benefited from 2.0%pt of operating leverage arising from our strong constant currency revenue growth in the period. This has generated higher gross profit, more than offsetting inflationary pressures affecting our operating costs such as higher pay, health insurance costs and employment taxes.

 

Gross margins excluding engineering costs were 58.8% compared to 61.5% in the prior year. This primarily reflects the impact of currency on our revenues, the impact of tariffs on both our revenues and our costs, as well as differing growth rates within our product portfolio and between regions. 

 

We remain committed to our long-term strategy of developing innovative and patented products to create strong market positions. We have made numerous improvements to our R&D project prioritisation and delivery in recent years, supporting an increased rate of new product introduction. During the first six months of this financial year, our gross engineering spend, excluding adjusting items, was 8.5% lower at £50.8m (H1 FY2025: £55.5m). Total engineering costs included in the consolidated income statement were 12.1% of revenues.

 

Distribution expenses, excluding adjusting items, have increased by 6.6% to £72.8m (H1 FY2025: £68.3m), mostly because of higher pay and benefits. Administrative expenses, excluding adjusting items, were 2.3% higher at £40.4m (H1 FY2025: £39.5m). These include continuing third-party support and maintenance costs in relation to our ongoing IT transformation, which will lead to productivity benefits in future years.

 

 

Segmental operating performance review

Segment performance summary

	H1 FY2026				H1 FY2025				Change
All figures in £m at actual exchange rates	Revenue	Adjusted operating profit	Adjusted operating profit margin		Revenue	Adjusted operating profit	Adjusted operating profit margin		Revenue	Adjusted operating profit	Adjusted operating profit margin
Industrial Metrology	212.1	32.2	15.2%		203.3	31.0	15.3%		4.3%	3.9%	(0.1%pt)
Position Measurement	110.5	25.9	23.4%		102.9	28.5	27.7%		7.4%	(9.1%)	(4.3%pt)
Specialised Technologies	43.0	(0.6)	(1.4%)		35.2	(7.9)	(22.4%)		22.2%	N/A	21.0%pt
Group	365.6	57.5	15.7%		341.4	51.6	15.1%		7.1%	11.4%	0.6%pt

All three reporting segments delivered revenue growth in H1, with a particularly strong improvement in performance for Specialised Technologies which has posted substantially reduced losses. Currency headwinds and changing product and customer mix were key factors in lower operating profit in the Industrial Metrology and Position Measurement segments.  Refer to note 2 for more details of segmental performance.

 

Industrial Metrology

Revenue for Industrial Metrology (IM) products increased by 4.3% to £212.1m at actual exchange rates (H1 FY2025: £203.3m) and was 8.8% higher at constant exchange rates. 

 

Our emerging metrology systems and software product lines have delivered strong year-on-year revenue growth in the first half as well as a growing order book. We continue to see improving demand for 5-axis AGILITY^® CMMs in the Americas, whilst sales of shop floor gauging systems into the consumer electronics sector in APAC have also increased significantly. Our new Equator-X™ dual-method gauge and our easy-to-use MODUS™ IM Equator software were positively received at their recent launch, and we are scaling up our production capacity to meet initial demand. 

 

Meanwhile, the established machine calibration product line also delivered strong year-on-year growth in H1 against a weaker period in the previous year, boosted by improving demand from semiconductor manufacturing equipment builders. We introduced our new XK20 alignment laser system and accompanying CARTO XK20 app in H1, targeted at builders of large and complex machine tools.

 

By contrast, sales of CMM and machine tool sensors were flat. We saw improving demand from consumer electronics subcontract manufacturers in APAC, but this was offset by continued weakness in EMEA, where demand from machine tool and CMM builders supplying the automotive sector remains subdued. We continue to innovate here, with our third-generation NC4+ Blue laser tool setter enabling detection of minute defects in cutting tools, ensuring good surface finish and enhancing overall part quality, with lower running costs.

 

Adjusted operating profit for the Industrial Metrology segment was 3.9% higher at £32.2m in H1, resulting in an adjusted operating margin that was 0.1%pt lower at 15.2%. Currency headwinds were largely offset by a combination of cost reductions and positive operating leverage. 

 

Position Measurement

Revenue for Position Measurement (PM) products increased by 7.4% to £110.5m at actual exchange rates (H1 FY2025: £102.9m) and was up 11.9% at constant exchange rates. 

 

We delivered strong sales growth from our established open optical and magnetic position encoder product lines, as well as a significant increase in their order books. We are seeing building momentum, particularly from the semiconductor and electronics manufacturing equipment sector, and we expect to achieve strong revenue growth in these product lines in the remainder of the year.

 

Meanwhile, sales of laser encoders, which are primarily used in semiconductor wafer inspection applications, were lower than an abnormally strong comparative period last year. However, the order book strengthened, and we remain confident about the growth prospects for this product line following the introduction of new high-performance variants at the end of FY2025.

 

We are also seeing high rates of growth for our emerging FORTiS™ enclosed optical encoders as we continue to win new customers. Whilst enclosed encoders are primarily sold to machine tool builders and demand for machine tools remains subdued, we are finding new applications in other types of manufacturing equipment. Following the recent launch of our ASTRiA™ inductive encoder product line, we are working closely with key prospects, including various defence sector applications.

 

Adjusted operating profit for the Position Measurement segment in H1 was 9.1% lower at £25.9m, resulting in an adjusted operating margin that was 4.3%pt lower at 23.4%. Like the IM segment, PM faced significant currency headwinds, which were partially offset by cost reduction activities. However, a change in product mix versus the comparable period last year, with lower sales of laser encoders and higher demand for magnetic encoders, drove operating margins lower. It should be noted that the margin achieved in H1 FY2026 is higher than the 22.5% margin achieved in FY2025 as a whole.

 

Specialised Technologies

Revenue for Specialised Technologies (ST) products increased by 22.2% to £43.0m at actual exchange rates (H1 FY2025: £35.2m) and grew by 25.9% at constant exchange rates. 

 

Additive manufacturing (AM) products were the key driver of this performance improvement. Sales of metal AM systems in H1 were significantly higher than the prior year, whilst orders were stronger still, resulting in a growing order book. Demand was particularly strong from the defence sector in both the EMEA and the Americas regions. During H1, we introduced further productivity enhancements to our market-leading RenAM 500 series machines, including new software that enables printing of complex geometries with minimal supports, as well as a long-life filter to maximise machine uptime.

 

Demand for spectroscopy systems was weaker in H1, with gains in the Americas being more than offset by lower sales in APAC and EMEA. A key development in the period was the introduction of our new Strada^® intelligent Raman microscope, which will start shipping to early-adopter customers in H2, and which will form the mainstay of our spectroscopy product line in the years ahead. The Strada microscope combines the sensitivity of research-grade Raman microscopes with our new intuitive, user-friendly Raman Workspace software, making advanced chemical analysis accessible to both industrial and multi-user laboratories.

 

Closure of the loss-making drug delivery aspect of our neurological business was concluded in H1, and we are now investigating opportunities to exit the remaining neurosurgery business.

 

Adjusted operating profit for the Specialised Technologies segment in H1 grew by £7.3m, resulting in a loss of £0.6m (H1 FY2025: £7.9m loss), with adjusted operating profit margin improving by 21.0%pt to -1.4%. ST experienced a proportionately lower currency impact than the other segments due to its different regional sales footprint, whilst also benefitting from neurological restructuring in addition to the companywide cost reduction programme. However, the primary driver of the substantial improvement in operating margin was operating leverage, especially in the AM product line.

 

 

Group performance overview

Profit and tax

Financial income less expenses for the period, excluding adjusting items, was £5.0m compared with £4.1m last year. Whilst interest on bank deposits reduced by £1.0m, we have experienced £0.4m of currency gains (H1 FY2025: £1.7m loss) on intragroup financing balances and mitigating forward currency swap contracts. The share of profits of joint ventures was £1.5m this year, compared to £1.8m in the prior year.

 

The resulting adjusted profit before tax for the period was £64.1m (17.5% of revenue) compared with £57.5m (16.8% of revenue) last financial year.  

 

Statutory profit before tax was 20.0% lower at £46.0m (H1 FY2025: £57.5m), including total costs of £18.0m relating to cost reduction, closure of drug delivery business, loss of office payment, and interest payable on historical and non-recurring tax matters, which have been excluded from adjusted profit.

 

The income tax expense in the consolidated income statement has been estimated at a rate of 21.1% (H1 FY2025: 20.1%) and is based on management's best estimate of the full year effective tax rates by geographical unit applied to half-year profits. The effective tax rate on adjusted profit before tax in H1 was 21.8%.

 

Adjusted earnings per share* were 68.8p, compared with 63.2p last year.

 

Return on invested capital

 

We measure return on invested capital (ROIC) to assess our efficiency in allocating capital to profitable investments. In H1 FY2026, ROIC increased by 0.6%pt to 13.2% (H1 FY2025: 12.6%), compared to our target of 15%. Adjusted profit after tax before interest received over the last twelve-month period increased to £96.4m (H1 FY2025: £89.9m), whilst average invested capital was 2.4% higher at £732.2m. See Note 12 for more details.

 

Cash flow

 

Our adjusted cash flow conversion from operating activities, which excludes cash outflows in H1 for restructuring activities that are also excluded from adjusted operating profit, was 68% in this period (H1 FY2025: 100%), slightly below our target of 70%.

 

Net movements in working capital were adverse in H1. Our trade receivables have fallen slightly to £126.1m, compared to £128.5m on 30 June 2025.  In response to rising order intake, we have stepped up our manufacturing output to support planned revenue growth in H2, resulting in a £5.4m increase in inventories to £164.9m, whilst trade and other payables have decreased by £4.0m. 

 

In H1, additions of property, plant and equipment (PP&E) amounted to £17.3m (H1 FY2025: £23.4m), with the focus primarily on plant and equipment to boost capacity and productivity, and we expect to spend a total of around £40m on PP&E additions during FY2026 as a whole.

 

Cash and cash equivalents and bank deposit balances on 31 December 2025 were £240.9m, compared with £273.6m on 30 June 2025. This reflects cash flows from operating activities of £31.0m including £14.6m for the cash effect of restructuring expenses and £15.2m taxes paid, less net investment in property, plant and equipment and intangibles of £21.5m and the final dividend payment of £44.6m in respect of FY2025.

 

Dividend

 

The Board has approved an interim dividend of 16.8p net per share (H1 FY2025: 16.8p), which will be paid on 7 April 2026 to shareholders on the register on 6 March 2026.

 

Principal risks and uncertainties

 

Whilst geopolitical uncertainty remains at heightened levels as demonstrated by changes to trade tariffs,

the Board considers that the principal risks and uncertainties as set out on pages 19 to 23 of the

2025 Annual Report remain valid for the second half of financial year 2026. This determination takes

into account the mitigations undertaken by the Group in respect of the principal risks. The principal

risks are geopolitical uncertainty, low price competition, product innovation, industry fluctuations,

non-compliance with laws and regulations, capital products growth, cyber, exchange rates, IT

transformation, and people.

 

Sustainability

 

We continue to make good progress towards our target of Net Zero for Scopes 1 and 2 emissions by 2028. During the period, we have started work on converting end-of-life heating systems at our manufacturing facility in Miskin, UK, from oil to a lower-carbon alternative. We are also focused on reducing our Scope 3 emissions. This includes working with key suppliers to reduce the carbon impact of the materials that we use to make our products, by optimising recycling and / or renewable energy use in their production. We are also making improvements to the energy efficiency of our products, including reduced consumption of compressed air in our new NC4+ Blue laser tool setter.

 

We also continue to see significant commercial opportunities arising from the drive towards sustainable business practices. Our products help our customers to meet their sustainability targets by increasing their manufacturing efficiencies through lower energy consumption and waste, and by improving the performance of the products they supply to their own customers.

 

Directors and employees

 

The Directors would like to thank our employees for continuing to drive us forward towards our vision to innovate and transform the capabilities of our customers.

 

Camille Deer, granddaughter of our co-founder John Deer, joined the Board as a Non-executive Director in September 2025.

 

The Renishaw Board is working to appoint a Chief Financial Officer following Allen Roberts' retirement in December 2025. Rob Macdonald, an experienced member of the Renishaw finance team, has been appointed as Interim Group Finance Director whilst this process proceeds.

 

The Renishaw Board is also working to appoint an independent Non-executive Chair, as well as recruitment of an additional independent Non-executive Director with experience in our markets.

 

Founder family shareholdings

 

On 25 November 2025 the families of our founders, the late Sir David McMurtry and current Non-executive Director, John Deer, established a joint family holding company, Deltam Holdings Limited ('Deltam'), which holds 50.25% of the issued share capital of Renishaw. Establishing Deltam facilitates a generational transfer of the business within the families, reaffirming their commitment to Renishaw and their intention to be long term shareholders in the Company.

 

Outlook

 

The Board remains confident in our growth model, built on solving customer problems with innovative products, global service and world-class in-house manufacturing. Whilst we operate in cyclical markets, we aim for high single-digit average organic growth rates through the cycle, to improve our operating profit margins to above 20%, to achieve strong returns on invested capital, and to generate strong free cash flow.

 

We expect the market backdrop in the remainder of FY2026 to continue to be mixed, with ongoing strong demand across specific sectors and product lines offsetting more subdued conditions in general industrial markets. We built strong momentum through the first half of FY2026, with positive contributions from our emerging products, delivering growth in each segment and a significant further growth of our order book. Whilst we are mindful of ongoing economic and geopolitical uncertainties, our positive momentum has continued in the early part of Q3, and we are confident of achieving strong growth for the year as a whole.

 

Our second half is normally stronger than H1 and that pattern is likely to continue this year. We currently expect to deliver FY2026 full-year performance in the following ranges: 

·      Revenue:                                        £740m to £780m

·      Adjusted profit before tax*:             £132m to £157m

 

 

 

Will Lee
Chief Executive Officer 10th February 2026