Renishaw (LSE:RSW) reported revenue of £815.8m for the year ended 30 June, up 14% at actual exchange rates and 17% at constant currency, from £713m in the prior year.
The precision metrology and healthcare technology group, which makes measurement and additive manufacturing systems, said growth accelerated through the year, culminating in a record fourth quarter of £244.2m, 28% above the prior year.
Adjusted profit before tax rose 32% to £168m, from £127.2m, while statutory profit before tax climbed 27% to £150m, from £118m, after absorbing £18m of redundancy and other one-off costs. Adjusted operating profit margin improved 3.0 percentage points at actual exchange rates, driven by fixed cost reduction and operational leverage, though partly offset by currency headwinds.
Growth was led by Position Measurement, where semiconductor manufacturing demand tied to the AI processing boom pushed profitability up 4.9 percentage points, and Specialised Technologies, the fastest-growing segment, where surging demand for additive manufacturing systems in aerospace and defence lifted profitability by 17.6 percentage points into positive territory.
Industrial Metrology delivered solid but slower growth, with flat sensor sales and marginally lower profitability.
Cash and deposits stood at £291m, up from £273.6m, while adjusted cash flow conversion fell to 79% from 91% as working capital absorbed higher sales and order book growth.
The board proposed a final dividend of 65.2p per share, taking total dividend growth to 5%, alongside a special interim dividend of 70.0p per share.
"FY2027 has started strongly as we continue to benefit from the current upturn in demand for semiconductor manufacturing equipment," said chief executive Will Lee, adding that the group expects "further strong progress on revenue, profit and operating margin in the year ahead."
News Intelligence what this means for the company
Renishaw delivered record profit and accelerating growth across all three business segments, with adjusted PBT up 32% to £168m on 14% revenue growth to £815.8m. The precision engineering group is riding strong demand in semiconductors (tied to AI) and aerospace/defence additive manufacturing, with management guiding to further strong progress in FY2027 despite absorbing £18m in one-off redundancy costs.
The 3.0 percentage point margin expansion at actual exchange rates, driven by fixed cost reduction and operational leverage, demonstrates pricing power and execution quality even as currency headwinds persist. However, the 12 percentage point drop in adjusted cash flow conversion to 79%—driven by working capital absorption from higher sales and order book growth—signals the company is reinvesting heavily to support that growth trajectory, a trade-off that will need monitoring.
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