UK's Bodycote H1 revenue rises on aerospace demand
UK's Bodycote H1 revenue rises on aerospace demand
Overview
UK thermal processing firm's H1 revenue rose 3.3% yr/yr, led by Aerospace & Defence growth
Adjusted basic EPS for H1 up 18.3% yr/yr
Company spent £12.6 mln on share buybacks in H1 under current programme
Outlook
Bodycote maintains FY26 outlook, expects organic revenue growth and margin improvement
Company expects strong demand in Aerospace & Defence and Industrial Gas Turbines to drive growth
Bodycote says pace of revenue growth likely to moderate in H2 due to prior year comparators
Result Drivers
AEROSPACE & DEFENCE DEMAND - Strong demand in Aerospace & Defence, especially from commercial aerospace and defence programmes, drove core organic revenue growth
SPECIALIST TECHNOLOGIES GROWTH - Specialist Technologies division delivered 16.7% organic revenue growth, reflecting favourable end market mix and aerospace programme exposure
OPTIMISE PROGRAMME BENEFITS - Operating margin improvement and profit growth were supported by ongoing benefits from the Optimise programme, including site closures and overhead reductions
Company press release: ID:nPRrS2260a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Beat | GBP 381.20 mln | GBP 371 mln (1 Analyst) |
H1 EBIT |
| GBP 45.60 mln |
|
H1 EBIT Margin |
| 12.00% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "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 GBp860.00, about 24.8% above its July 27 closing price of GBp689.00
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago
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(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.)