Highlights

  • Renishaw’s Revenue increased 7.1% to GBP 365.6m in H1 FY26, with record Q2 performance.
  • Adjusted operating margin improved to 15.7% despite currency headwinds.
  • Adjusted profit before tax rose 11.5%, while statutory profit fell 20.0%.
  • Cash Flow conversion declined to 68% amid higher working capital needs.
  • FY26 revenue guided between GBP 740m–780m with mixed market backdrop.

Renishaw plc (LSE:RSW) shares advanced 3.21% to GBX 4009.78 during the morning session on 11 February 2026 coinciding with the release of company’s interim results for the six months ended 31 December 2025 (H1 FY2026).

Renishaw reported revenue of GBP 365.6m for H1 FY26, compared with GBP 341.4m in the prior corresponding period, reflecting growth of 7.1% at actual exchange rates and 11.5% at constant currency. The company recorded a record second quarter, with Q2 revenue 14.1% higher than Q1, alongside further expansion of its order book.

Revenue increased across all three business segments, with growth reported in the Americas and Asia-Pacific (APAC) regions. The defence and semiconductor sectors contributed to performance during the period. Emerging product lines, including co-ordinate measuring machine and gauging systems, additive manufacturing systems, and enclosed optical encoders, also recorded progress.

Profit Margins Improve Despite Currency Headwinds

Adjusted operating profit rose to GBP 57.5m from GBP 51.6m, representing growth of 11.4%. The adjusted operating profit margin improved by 0.6 percentage points to 15.7%.

According to the company, 4.4 percentage points of organic margin improvement were driven by fixed cost reductions, productivity measures and operational leverage, offset by 3.8 percentage points of headwinds from currency and tariffs.

Adjusted profit before tax increased 11.5% to GBP 64.1m. On a statutory basis, profit before tax declined 20.0% to GBP 46.0m, including GBP 18.0m in redundancy and impairment charges linked to previously announced restructuring activities and other one-off costs.

Earnings per share on an adjusted basis rose to GBX 68.8 from GBX, 63.2 while the interim dividend was maintained at GBX 16.8 per share.

Cash Flow Conversion Eases as Working Capital Rises

Adjusted cash flow conversion from operating activities was 68%, compared with 100% in H1 FY25. The reduction reflected higher working capital requirements to support record Q2 sales and a growing order book, partially offset by lower capital expenditure.

Cash and deposit balances stood at GBP 240.9m at the end of the period, compared with GBP 273.6m at FY2025 year-end. Return on invested capital increased by 0.6 percentage points to 13.2%.

Full-Year Guidance Signals Growth Expectations Amid Mixed Market Conditions

Looking ahead, the company indicated that trading conditions for the remainder of FY2026 are expected to remain mixed, with continued demand across certain sectors and product lines offsetting softer conditions in broader industrial markets.

Momentum built during the first half has carried into the early part of Q3, supported by contributions from emerging products and further expansion of the order book. While economic and geopolitical uncertainties persist, the second half is typically favourable than the first, and that seasonal pattern is expected to continue. For the full year, the company anticipates revenue in the range of GBP 740m to GBP 780m and adjusted profit before tax between GBP 132m and GBP 157m.

FAQs
1. How did Renishaw perform in H1 FY26?

Renishaw reported revenue of GBP 365.6m, up 7.1% year-on-year, while adjusted profit before tax increased 11.5% to GBP 64.1m. However, statutory profit before tax declined 20.0% due to GBP 18.0m in restructuring and impairment costs.

  1. What impacted Renishaw’s margins and cash flow?

Adjusted operating margin improved to 15.7%, supported by cost efficiencies and operational leverage, but partly offset by currency and tariff headwinds. Cash conversion declined to 68% due to higher working capital requirements linked to record Q2 sales and order book growth.

  1. What is Renishaw’s guidance for FY2026?

The company expects FY2026 revenue between GBP 740m and GBP 780m, with adjusted profit before tax projected in the range of GBP 132m to GBP 157m, noting mixed market conditions in the second half.