Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • RSW’s FY25 revenue up 3.1% YoY to GBP 713.0M; constant currency growth of 3.7%
  • Adjusted PBT up 3.8% to GBP 127.2M; statutory PBT down 3.7% to GBP 118.0M
  • Final dividend proposed at 61.3p, taking full-year dividend to 78.1p (+2.5%).

Renishaw plc (LSE: RSW) is a global supplier of measuring and manufacturing systems, providing high-accuracy solutions that enhance product innovation and process efficiency. The company operates across the Americas, EMEA, and APAC, with most R&D in the UK and major manufacturing sites in the UK, Ireland, and India.

Financial Performance

Renishaw reported record revenue of GBP 713.0M in FY25, compared with GBP 691.3M in FY24. Growth was supported by position encoders and 5-axis CMM systems, though additive manufacturing demand was weaker. Analytical instruments and medical devices revenue declined 3.8% to GBP 41.5M. On a regional basis, APAC delivered 7.2% growth, driven by China, while revenues in the Americas rose 2.2% and EMEA remained flat.

Adjusted profit before tax rose 3.8% to GBP 127.2M, while statutory profit before tax fell 3.7% to GBP 118.0M due to non-recurring costs, including closure of the Edinburgh facility and Neurological drug delivery exit. Adjusted EPS increased 3.5% to 137.8p, whereas statutory EPS declined 13.5% to 115.2p.

Balance Sheet and Cash Flow

The company ended FY25 with cash and deposits of GBP 273.6M (FY24: GBP 217.8M). Capital expenditure was GBP 46.3M, mainly for automation and capacity expansion. ROIC increased to 12.6%, and adjusted cash conversion was 91%, exceeding the 70% in FY24. Net debt remained low, and focus has shifted to capital allocation to support growth.

Operational and Strategic Progress

Renishaw accelerated innovation with several product launches. In machine tools, Opti-Logic™ technology was added to twin probe systems for faster setup. The company launched its next-gen laser encoders and AGILITY CMMs, as well as the RenAM 500D dual laser AM machine with TEMPUS™ technology, enabling faster 3D printing.

In gauging systems, the Equator-X™ and MODUS IM Equator software were introduced to improve usability and reduce support costs. Expansion into new markets included the ASTRiA™ inductive encoder line, designed for robotics, defence, and medical applications.

Portfolio adjustments included exiting the drug delivery part of the Neurological business, with plans to divest neurosurgical activities. A cost reduction program targeting GBP 20M annual payroll savings will take effect in H1 FY26. Productivity initiatives also include greater automation, IT upgrades, and AI adoption.

Outlook

The company noted a steady start to FY26, in line with expectations. Structural market drivers continue to support opportunities across businesses. Renishaw remains focused on its long-term targets of high single-digit revenue growth, 20% operating margins, and 15% ROIC, backed by innovation, automation, and disciplined cost management.