UK's Renishaw slightly beats FY revenue estimates on strong demand for semiconductor tools
Overview
UK measurement systems maker's FY2026 revenue grew 14%, slightly beating analyst expectations
Adjusted EPS and adjusted pretax profit for FY2026 beat analyst expectations
Company announced special dividend of 70p per share in addition to proposed final dividend
Outlook
Company expects further strong progress on revenue, profit and operating margin in FY2027
Renishaw says FY2027 has started strongly with continued demand for semiconductor manufacturing equipment
Company plans to expand encoder production capacity to meet customer demand
Result Drivers
SEMICONDUCTOR DEMAND - Co said AI-driven upturn in semiconductor manufacturing equipment demand boosted revenue, especially in Position Measurement segment
EMERGING PRODUCT LINES - Co said strong growth in emerging product lines, notably additive manufacturing systems and metrology systems/software, drove segmental revenue gains
OPERATIONAL LEVERAGE - Co said margin improvement was driven by fixed cost reduction and operational leverage, offset by currency headwinds
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Slight Beat* | GBP 815.80 mln | GBP 809.99 mln (8 Analysts) |
FY Adjusted EPS | Beat | GBP 1.80 | GBP 1.78 (8 Analysts) |
FY EPS | GBP 1.64 | ||
FY Adjusted Pretax Profit | Beat | GBP 168 mln | GBP 165.01 mln (7 Analysts) |
FY Pretax Profit | GBP 150 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 5 "strong buy" or "buy", 2 "hold" and 1 "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 Renishaw PLC is GBp5,460.00, about 1.4% below its September 22 closing price of GBp5,535.00
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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.)