Renishaw Shares Surge on Strong H1 Results and Optimistic Outlook

Shares of Renishaw plc (RSW.L) jumped over 5% in early trading following the release of its half-year results for FY2026, showcasing robust revenue and profit growth.

The metrology and engineering firm reported a strong performance driven by increased demand in key sectors and successful emerging product lines.

Renishaw's revenue for H1 FY2026 reached £365.6 million, a 7.1% increase compared to £341.4 million in H1 FY2025. At constant currency, revenue growth was even more impressive at 11.5%. Operating profit also saw a healthy rise, climbing 11.4% to £57.5 million from £51.6 million. Earnings per share increased to 68.8 pence, up from 63.2 pence the prior year.

Profit before tax, adjusted for one-off costs, grew 11.5%. However, statutory profit before tax saw a 20.0% decrease, impacted by £18.0 million in redundancy and impairment costs related to restructuring activities. The company maintained its interim dividend at 16.8 pence per share, signaling confidence in its financial stability.

The company’s cash flow conversion from operating activities was 68%, down from 100% in the previous year, reflecting increased working capital needs to support growing sales and order book. Despite this, Renishaw maintains a strong balance sheet with £240.9 million in cash and deposit balances.

Driver Breakdown:

• Sector Strength: Strong growth in the defense and semiconductor sectors significantly contributed to revenue.
• Geographic Performance: The Americas and APAC regions demonstrated notable revenue growth, bolstering overall performance.
• Emerging Products: Emerging product lines, including co-ordinate measuring machines, additive manufacturing (AM) systems, and enclosed optical encoders, gained traction.

CEO Will Lee 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…We enter H2 with momentum and we expect to achieve strong revenue and profit growth in the remainder of the year.”

Renishaw anticipates a mixed market backdrop for the remainder of FY2026, with strong demand in specific sectors offsetting subdued conditions in general industrial markets. The company expects full-year revenue to be in the range of £740 million to £780 million and adjusted profit before tax between £132 million and £157 million.