Oxford Instruments plc (OXIG), the FTSE 250 scientific technology company, has reported strong half-year results for the six months to 30 September 2026, with group order intake rising 44.2% to £296.0m and adjusted operating profit climbing 21.5% to £30.0m. The Advanced Technologies division drove exceptional demand, powered by high-volume manufacturing customers investing in compound semiconductor processes for datacentre infrastructure. The company confirmed it continues to trade in line with market expectations for the full year, while upgrading its FY28 outlook for the Advanced Technologies division.

Key Points

  • Oxford Instruments plc (OXIG), FTSE 250, London Stock Exchange
  • Group order intake rose 44.2% to £296.0m in H1 FY27, with an order book of £317m underpinning second-half delivery
  • Adjusted diluted EPS grew 29.1% to 42.2p; interim dividend declared at 5.8p per share, up 7.4% year-on-year; net cash of £74.8m at period end
  • Investors may be watching the completion of the £100m share buyback programme and the announced intention to extend buybacks by a further £25m to Summer 2027

Advanced Technologies Division Posts 126% Order Intake Growth Driven by Datacentre Demand

Oxford Instruments' Advanced Technologies division delivered the standout performance of the half, with order intake surging 126% from high-volume manufacturing customers selecting the company's compound semiconductor processes for next-generation datacentre connectivity. Division revenue reached £58.9m, up 27% on an organic constant currency basis, while adjusted operating margin expanded by 530 basis points to 7.5%. The order book now provides full cover for FY27 revenues and extends well into FY28, underpinning the company's upgraded outlook for that division, with revenue now expected to grow approximately 20% and margins expected to move into the medium-term target range of 12% to 15%.

Imaging and Analysis Maintains Momentum Despite US Academic Softness

The Imaging and Analysis division, which manufactures microscopes, scientific cameras and analytical instruments across sites in the UK, Europe and the USA, reported order intake of £163.8m, up 11.7%, with revenue of £142.2m, up 2.4%. Adjusted operating margin improved 90 basis points to 18.0%. Commercial order intake rose 20%, supported by semiconductor and materials analysis applications and a regional sales model that included new customer demonstration centres opened in Korea and Taiwan during the period. US academic sector headwinds, where that market represented 10% of H1 revenue, were more than offset by growth in Asia-Pacific and European academic markets.

Free Cash Flow Rises Sharply as Oxford Instruments Sustains £74.8m Net Cash Position

The company reported a significant step up in free cash flow to £19.1m for the period, compared with £0.2m in the prior year, driven by an operating cash conversion rate of 85% against 41% in H1 FY26. Net cash stood at £74.8m at 30 September 2026. Oxford Instruments also confirmed that £83.1m of its £100m share buyback programme had been completed by that date, with the remaining £16.9m expected to be deployed in early 2027, followed by a new £25m buyback programme targeted for completion by Summer 2027. R&D investment of approximately £19m represented 9% of revenue, in line with the company's stated target range.

Oxford Instruments Reaffirms Full-Year FY27 Guidance and Flags January Trading Update

The company stated it continues to trade in line with market expectations for FY27, noting consensus estimates for reported full-year revenue of £446.1m, adjusted operating profit of £81.2m, and adjusted operating margin of 18.2%. Chief Executive Officer Richard Tyson, in comments included in the announcement, cited confidence in meeting full-year market expectations while acknowledging the complexity of the external landscape and the challenges associated with rapid growth. Oxford Instruments indicated it expects to provide a further trading update on 14 January 2027, which investors may monitor for any revision to the current guidance trajectory.