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RNS Number : 4755E  Renishaw PLC  23 October 2025

Renishaw plc

 

23 October 2025

 

Renishaw plc, the global provider of manufacturing technologies, publishes
this trading update for the three months ended 30 September 2025, which
contains unaudited information covering the first quarter (Q1) of the FY2026
financial year.

 

 

 Steady start to FY2026 in mixed market conditions

 ·    2.8% constant currency revenue growth, 1.8% lower at actual exchange
 rates, with an improving order book

 ·    Positive reception to launches of important new Industrial Metrology
 products

 ·    Previously announced £20m operating cost reduction programme
 implemented in Q1

 

 

FY2026 Q1 segmental revenue

 

                           3 months to    3 months to    Growth at  Growth at constant exchange

                           30 Sept 2025   30 Sept 2024   actual     rates*

                                                         exchange

                                                         rates

 Industrial Metrology      102.0          103.6          -1.5%      +3.4%
 Position Measurement      52.1           53.2           -2.1%      +2.2%
 Specialised Technologies  16.7           17.1           -2.2%      +1.0%
 Total revenue (£m)        170.8          173.9          -1.8%      +2.8%

 

Total revenue at actual exchange rates was 1.8% lower at £170.8m (FY2025:
£173.9m).  Revenue at constant exchange rates* was 2.8% higher than the
previous year.  1.2% of this growth relates to surcharges to offset tariff
duties in the Americas.

Industrial Metrology (IM) revenue was 3.4% higher at constant exchange
rates.  We continue to see good demand for 5-axis co-ordinate measuring
machines (CMMs) and shop-floor gauging systems, with strong year-on-year
revenue growth in the first quarter and a growing order book.  Machine
calibration systems delivered steady year-on-year growth.  By contrast, sales
of metrology sensors to machine tool and CMM builders were weaker than the
prior year, particularly in EMEA.

Position Measurement (PM) revenue was up 2.2% at constant exchange rates, with
solid sales growth for open optical encoders and a growing order book.  We
are also seeing good growth in our emerging enclosed encoders product line,
which is primarily sold to machine tool builders.   Meanwhile, sales of
laser encoders were lower than a particularly strong comparative period in the
prior year.  Following the recent launch of our ASTRiA™ inductive encoder,
we are working closely with key prospects, including various defence sector
applications.

Specialised Technologies (ST) revenue was 1.0% higher at constant exchange
rates.  Sales of metal additive manufacturing (AM) systems in Q1 were higher
than recent quarters, but slightly below a strong Q1 in the previous year.
 Spectroscopy revenues in Q1 were lower than the prior year, but the order
book has strengthened.

 

FY2026 Q1 regional revenue

 

                      3 months to    3 months to    Growth at  Growth at constant exchange

                      30 Sept 2025   30 Sept 2024   actual     rates*

                                                    exchange

                                                    rates

 Americas             43.8           41.5           +5.7%      +11.2%
 APAC                 84.4           79.1           +6.6%      +14.7%
 EMEA                 42.6           53.3           -20.1%     -20.5%
 Total revenue (£m)   170.8          173.9          -1.8%      +2.8%

Market conditions around the world remain mixed:

·      Americas delivered 11.2% year-on-year revenue growth at constant
currency in Q1, as well as a strengthening order book.  A significant portion
of this growth resulted from surcharges introduced to offset additional tariff
costs, but underlying demand for CMM systems, AM systems and PM products also
improved.

·      APAC achieved 14.7% revenue growth at constant currency and a
strengthening order book in Q1, compared to a weak corresponding period in the
prior year.  We saw continued growth in demand for PM products for
semiconductor manufacturing equipment and higher demand for IM products from
the consumer electronics sector.

·      By contrast, constant currency sales in EMEA were 20.5% lower in
Q1 than in the corresponding period last year.  We continue to see weak
demand for IM sensors from machine tool builders, whilst sales of laser
encoders for wafer inspection applications were also lower than last year.
Q1 sales were also affected by the planned implementation of a new sales ERP
system in some EMEA territories during September, with this expected to be
recovered during Q2.

 

Strategic progress

In September, we launched the Equator-X™ dual method shopfloor gauge and
MODUS™ IM Equator metrology software at the EMO exhibition in Germany.
Both received a positive reception, and we are scaling up capacity in our
pre-production facility to satisfy early customer interest.  We also launched
the XK20 alignment laser system, which provides comprehensive build data for
high performance machine tools, CMMs and precision stages. Our latest NC4+
Blue high-accuracy laser tool setting system for machine tools was also
launched at EMO.

In June we announced an operating cost reduction programme targeting £20m in
annualised payroll savings.  This has been completed in Q1 and Group
headcount at the end of September is 350 (6.5%) lower than at the end of
FY2025. We continue to progress a number of productivity initiatives, aimed at
enhancing efficiency and improving returns in line with our medium-term
targets.

We are also progressing the closure of the drug delivery aspect of our
non-core neurological business, which will conclude in FY2026 Q2.

 

Outlook

There has been a steady start to FY2026, in line with our expectations.
Despite the continued global uncertainty, the structural drivers that underpin
our markets are presenting growth opportunities across our businesses and at
this stage we are expecting to achieve further steady revenue growth in the
year ahead.

 

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)

 

Notes

 

* In accordance with Renishaw's Alternative Performance Measures (APMs) policy
and ESMA Guidelines on Alternative Performance Measures (2015), this section
defines non-IFRS measures that we believe give readers additional useful and
comparable views of our underlying performance.

 

Revenue at constant exchange rates

Revenue at constant exchange rates is defined as revenue recalculated using
the same rates as were applicable to the previous year and excluding forward
contract gains and losses.

 

 £'m                                                     3 months to 30 Sept 2025  3 months to 30 Sept 2024
                                                         £'m                       £'m

 Statutory revenue as reported                           170.8                     173.9
 Adjustment for forward contract (gains)/losses          (3.3)                     (9.0)
 Adjustment to restate at previous year exchange rates   2.0                       -
 Revenue at constant exchange rates                      169.5                     164.9
 Year-on-year revenue growth at constant exchange rates  2.8%                      -

 

 

In common with many UK PLCs, we no longer provide commentary on quarterly
profit in our Q1 and Q3 trading updates.  We feel it is more helpful to
analyse profit over longer periods and so we will provide commentary on costs
and profits in our interim and final results announcements every six months.
Our quarterly trading updates now include a more detailed commentary of
segmental and regional demand trends.

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