REG - Renishaw PLC - New reporting segments for FY2026

RenishawAnnouncement

23/09/2025 07:00

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RNS Number : 2879A  Renishaw PLC  23 September 2025

Renishaw plc

 

23 September 2025

 

 

New reporting segments for FY2026

As previously announced, Renishaw is introducing three new reporting segments
in FY2026, which will replace the existing manufacturing technologies and
analytical instruments & medical devices segments.  The new segments
group together product lines with similar end-user markets, which will more
closely align segmental performance with external market data and demand
drivers.  They are also aligned to our evolving organisation structure.

The table below sets out how Renishaw's product lines are grouped into both
our previous segments and our new segments.  There is a minor change from the
preliminary information conveyed at our recent Capital Markets Day: Industrial
automation is placed in Industrial Metrology, where there are synergies with
our other probing and calibration products.

 

Notes:

Established                #1 / #2 market share, profitable, growing
market

Emerging                   not yet at target share, scale and
profitability - focus on rapid growth & share gains in high-growth markets

Non-core                   intention to divest

 

Each of the new segments contain a mix of established business and emerging
product lines as we seek to strengthen our market position and build a
coherent range of profitable, growing businesses.

 

Segment overview

Our Industrial Metrology products are used for measurement and control of
precision component manufacturing processes, across a wide range of
industries.  Demand for metrology is being driven by tighter tolerances,
automated processes and more frugal use of energy and materials across
manufacturing industries.  The established product lines are linked to demand
for machine tools and various trade associations around the world provide
useful historic and forecast data for this market.  By contrast, growth in
our emerging metrology systems and software product lines will be driven both
by market growth and by market share gains, accelerated by our latest new
product introductions. This includes our recently introduced Industrial
Automation product line, which provides a new approach to the challenges of
robot deployment for precision tasks.

The Position Measurement segment is focused on motion control of precision
machinery, robots, defence equipment and factory automation.  Our position
encoders are embedded into equipment in a very wide range of industries, and
they enable that equipment to move with great speed and precision.  The
increasing precision and complexity of modern production processes is a key
driver of demand for encoders, with applications such as advanced
semiconductor packaging and wafer inspection requiring higher-spec encoders
and more axes per machine.  Semiconductor equipment capex is a key external
driver that correlates strongly with our contactless encoder demand.
 Meanwhile, our emerging enclosed optical and inductive encoders for harsh
environments are meeting the needs of greater precision in shop floor and
defence applications.  Here our growth will be driven by new product
introductions and gaining market share.

Specialised Technologies includes a range of independent product lines,
positioned to address high-growth industrial markets.  Our established
Spectroscopy business has a strong market position in materials analysis in
research and industrial applications.  Our new easy-to-use STRADA(®)
instrument, which is being introduced in FY2026, will strengthen our offering
to industrial customers, and complements the Virsa™ Raman analyser which is
suited to process control applications.  Our Additive Manufacturing product
line is an emerging business where we continue to invest significantly to move
the technology forward.  Our current multi-laser machines have market-leading
productivity thanks to recent innovations, and we are investing in a
next-generation platform which will provide significantly faster processing
and greater automation.  Finally, this segment also includes the non-core
Neurological business, which we intend to divest.

 

Segment financial performance

The following tables set out the performance of the new reporting segments in
FY2025 and FY2024:

 

 Year ended 30 June 2025                                                   Industrial Metrology  Position Measurement  Specialised Technologies  Total

 Revenue                                                                   430,565               207,430               75,049                    713,044

 Depreciation, amortisation & impairment                                   22,768                8,219                 4,759                     34,746

 Statutory operating profit                                                74,130                46,010                (12,255)                  107,885

 Closure of drug delivery business                                         -                     -                     2,059                     2,059
 Closure of Edinburgh research office                                      1,378                 618                   324                       2,320

 Adjusted operating profit                                                 75,508                46,628                (9,872)                   112,264
 Adjusted operating profit margin                                          17.5%                 22.5%                 (13.2%)                   15.7%

 Share of profits from associates & joint ventures                         488                   3,050                 -                         3,538
 Net financial income excluding provisions for interest on historical and  -                     -                     -                         11,429
 non-recurring tax matters

 Adjusted profit before tax                                                                                                                      127,231

 

 

 Year ended 30 June 2024                                Industrial Metrology  Position Measurement  Specialised Technologies  Total

 Revenue                                                430,538               180,681               80,082                    691,301

 Depreciation, amortisation & impairment                24,708                6,000                 2,120                     32,828

 Statutory / Adjusted operating profit                  80,898                32,085                (4,316)                   108,667
 Adjusted operating profit margin                       18.8%                 17.8%                 (5.4%)                    15.7%

 Share of profits from associates & joint ventures      607                   3,273                 -                         3,880
 Net financial income                                   -                     -                     -                         10,047

 Adjusted profit before tax                                                                                                   122,594

 

 

 

Industrial Metrology revenue in FY2025 was flat at £430.6m (FY2024:
£430.5m).  Good growth in sales of 5-axis co-ordinate measuring machine
systems was offset by weaker demand for Equator™ shop floor gauges and
machine tool probes. This performance has been achieved against a backdrop of
sluggish manufacturing activity in some key territories, with notably weaker
demand from the consumer electronics sector as it reacts to changing trade
regulations.  The 5-year compound annual growth rate (CAGR) for Industrial
Metrology revenue is 6%.  In a period of flat sales and inflationary pressure
on fixed costs, adjusted operating profit in FY2025 was 7% lower at £75.5m
(FY2024: £80.9m), with operating profit margin down 1.3% to 17.5% (FY2024:
18.8%).

Position Measurement was the strongest performing segment in FY2025, with
revenue growing by 15% to £207.4m (FY2024: £180.7m).  All product lines
delivered growth, and we saw particularly strong demand for laser encoders for
semiconductor wafer inspection applications, whilst open optical encoders also
delivered good growth, driven substantially by semiconductor manufacturing
applications.  The 5-year CAGR for Position Measurement revenue is 11%.
Adjusted operating profit in FY2025 grew by 45% to £46.6m (FY2024: £32.1m),
with operating profit margin up 4.7% to 22.5% (FY2024: 17.8%).

Specialised Technologies revenue in FY2025 was down 6% at £75.0m (FY2024:
£80.0m).  Spectroscopy sales were lower as government research budgets came
under pressure, especially in the USA.  Additive Manufacturing (AM) saw
weaker demand from key customers following good growth in the prior year.
 Neurological sales were higher in FY2025, driven by new and replacement
neurosurgical robot sales. The 5-year CAGR for Specialised Technologies
revenue is 4%, which includes a reduction in revenue following restructuring
of the AM business in FY2021.  Adjusted operating loss in FY2025 increased to
£9.9m (FY2024: £4.3m), with operating profit margin 7.8% lower at -13.2%
(FY2024: -5.4%).  Profit in this segment will benefit from closure of the
loss-making drug delivery aspect of the Neurological product line, which will
improve margins by £3m p.a. once implemented in the first half of FY2026.

 

 

 Will Lee           Allen Roberts
 Chief Executive    Group Finance Director

 23 September 2025

 Renishaw plc
 Registered office  New Mills, Wotton-under-Edge, Gloucestershire, GL12 8JR
 Registered number  01106260
 Email address      communications@renishaw.com
 Website            www.renishaw.com

 

 

 

 

About Renishaw

 

We are a world leading supplier of measuring and manufacturing systems. Our
products give high accuracy and precision, gathering data to provide customers
and end users with traceability and confidence in what they're making. This
technology also helps our customers to innovate their products and processes.
We are a global business, with customer-facing locations across our three
sales regions; the Americas, EMEA, and APAC. Most of our R&D work takes
place in the UK, with our largest manufacturing sites located in the UK,
Ireland and India.

 

Further information can be found at www.renishaw.com (http://www.renishaw.com)

 

 

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