UK's Bodycote full-year revenue falls on oil & gas weakness

Bodycote

11/03/2026 07:10

Overview

UK thermal processing provider's full-year group revenue declined 4%, slightly beating analyst expectations

Adjusted basic EPS for the year fell 8.6% yr/yr, impacted by lower profit and margin headwinds

Company announced new £80 mln share buyback, expected to complete by end of 2027

Outlook

Bodycote expects core organic revenue growth in 2026, led by strong demand in A&D and IGT

Company expects operating margins to improve in 2026, supported by volume growth and Optimise benefits

Bodycote says Automotive and Industrial Markets likely to remain challenging in the near term

Result Drivers

OIL & GAS WEAKNESS - Decline in high-margin Oil & Gas revenue, including end of a major UK contract, weighed on profit and margins

AUTOMOTIVE & INDUSTRIAL CHALLENGES - Ongoing subdued demand in Automotive and Industrial markets continued to impact revenue and margins

OPTIMISE PROGRAMME BENEFITS - Cost savings from the Optimise programme partly offset profit and margin pressures

Company press release: ID:nPRrB3232a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Slight Beat*
GBP 727.10 mln
GBP 722.03 mln (8 Analysts)
FY EBIT
GBP 83.60 mln
FY EBIT Margin
11.50%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for Bodycote PLC is GBp825.00, about 16.5% above its March 10 closing price of GBp708.00

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)