UK's Rotork H1 revenue stable on growth in CPI, water and power segment
UK's Rotork H1 revenue stable on growth in CPI, water and power segment
Overview
UK industrial flow control maker's H1 revenue was stable, up 1.3% OCC yr/yr
Company completed £40 mln share buyback in H1 and announced recommended cash acquisition by ABB
Strong CPI and Water & Power growth offset Oil & Gas declines caused by Middle East disruption
Outlook
Rotork maintains 2026 Group outlook, expects further progress on OCC basis
Company expects Water & Power performance to be underpinned by strong order momentum in H2
Rotork anticipates Oil & Gas full-year revenue to be slightly lower year-on-year
Result Drivers
SEGMENT MIX - Strong growth in CPI and Water & Power offset lower Oil & Gas revenue, which was hit by Middle East conflict and customer capex discipline
MARGIN DRIVERS - Adjusted operating margin expanded due to operating leverage, disciplined cost management and favourable sales mix
SERVICE GROWTH - Service revenue grew faster than the broader group and increased to 24% of revenue, supported by CPI and Water & Power
Company press release: ID:nRSD0826Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Slight Miss* | GBP 367.20 mln | GBP 369 mln (2 Analysts) |
H1 Adjusted Operating Profit | Beat | GBP 82.20 mln | GBP 78 mln (1 Analyst) |
H1 Pretax Profit | Miss | GBP 71.40 mln | GBP 79 mln (2 Analysts) |
H1 Adjusted EBIT Margin |
| 22.40% |
|
H1 EBIT Margin |
| 19.60% |
|
H1 Operating Profit |
| GBP 72 mln |
|
H1 Orders |
| GBP 371.80 mln |
|
*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 "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 9 "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 Rotork PLC is GBp503.00, about 3.3% above its August 3 closing price of GBp487.00
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 17 three months ago
Reuters Recommended Reads
Aug 3 - CNH raises annual profit forecast on improving construction equipment demand
Aug 2 - UK faces recession if Strait of Hormuz stays closed, forecaster warns
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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.)