Highlights

• Oxford Instruments lifted group order intake 44.2% to £296.0m, building an order book of around £317m.

• Advanced Technologies orders jumped 126% on high-volume Manufacturing demand, leaving the division's FY27 Revenue fully covered.

• Adjusted operating profit rose 21.5% to £30.0m, lifting the adjusted Operating Margin 160 basis points to 14.9%.

• The board raised the Interim Dividend 7.4% to 5.8p and plans a further £25m share buyback.

Orders at Oxford Instruments plc (LSE:OXIG) surged 44% in the first half, yet one long-standing customer group headed the other way, with US academic Demand still falling. Results for the six months to 30 September 2026, published on 10 November, show revenue up 9.0% on an organic constant currency basis and adjusted operating profit up 21.5%, despite that softness and a currency drag.

Oxford Instruments half-year results: the headline figures

Revenue reached £201.1m, an increase of 8.4% on a reported basis. Adjusted operating profit rose to £30.0m from £24.7m, a gain of 28.3% at organic constant currency.

Statutory operating profit improved to £27.1m from £20.0m, and statutory profit before tax rose to £27.9m from £20.3m.

Adjusted Diluted Earnings per Share climbed 29.1% to 42.2p, helped by the share buyback, while statutory diluted EPS increased to 33.8p from 20.5p.

Advanced Technologies takes centre stage

Advanced Technologies orders rose to £132.2m from £58.6m, driven by high-volume manufacturing customers. Division revenue grew 26.6% at organic constant currency to £58.9m, and its adjusted operating margin widened to 7.5% from 2.1%. In its October trading update, Oxford Instruments (LSE:OXIG) said about three quarters of the division's first-half orders came from datacom applications.

Imaging & Analysis orders increased 12% to £163.8m, and its order book rose 8%. Revenue there grew 3.1% at organic constant currency to £142.2m, with the margin improving to 18.0% from 17.1%.

Cash flow, dividend and Capital returns

Free Cash Flow rose to £19.1m from £0.2m, and normalised cash conversion improved to 85% from 41%. The company credited higher cash conversion, lower restructuring costs and the end of pension contributions. Net cash stood at £74.8m, compared with £45.1m a year earlier.

By 30 September, £83.1m of the £100m buyback had been completed, and the remaining £16.9m is expected to finish in early 2027. A further £25m programme is intended for completion by summer 2027.

The 5.8p interim dividend, up from 5.4p, will be paid on 8 January 2027 to shareholders on the register at 27 November 2026.

The soft spots: US academia and sterling

The US academic sector, which made up 10% of first-half revenue, "continues to show a decline in orders and revenue versus the prior year", the company said. Currency movements reduced adjusted operating profit by about £1.7m, and the full-year foreign exchange headwind is expected to be about £3.2m based on an average US dollar rate of 1.325. Roughly 49% of revenue is in US dollars. On a brighter note, Tariff uncertainty in the US X-ray tube Business appears to be easing, with revenue there up nearly 11%.

Outlook into the second half

The group continues to trade in line with market expectations for FY27. For FY28, Advanced Technologies revenue is expected to grow by about 20%, with its margin moving into a 12%-15% medium-term range. Chief Executive Richard Tyson described the first half as very encouraging, citing continued order momentum. The next trading update, due on 14 January 2027, will show whether that momentum carries through for the shares of Oxford Instruments (LSE:OXIG).