Bodycote, the thermal processing and materials engineering group, reported Core organic revenue growth of 9.6% in the first half, in line with expectations.
Group revenue rose 3.3% to £381.2m (H1 2025: £369m), or 6.5% organically, as strong demand in Aerospace & Defence, Industrial Gas Turbines, Medical and Semiconductors offset continued weakness in Automotive, particularly in Europe.
Group adjusted operating profit climbed 10.7% to £61m, with margins up 110 basis points to 16.0% as the shrinking Non-Core portfolio lifted overall quality.
Adjusted basic earnings per share rose 18.3% to 25.2p (H1 2025: 21.3p), aided by the ongoing share buyback, while statutory EPS reached 18.1p (H1 2025: 15.5p).
Specialist Technologies led growth with organic revenue up 16.7%, driven by Aerospace programme exposure including the LEAP engine, while Precision Heat Treatment grew 6.4%.
Net debt rose to £135.2m from £104.8m at the end of December, after £27.5m in dividend payments, the Spectrum acquisition and £17.8m spent on buybacks, against free cash flow of £14.5m.
The board declared an interim dividend of 7.2p, up 4.3% year-on-year.
"We progressed well in the first half and have achieved results in line with our expectations", said chief executive Jim Fairbairn, noting ongoing structural weakness in Western European Automotive.
Bodycote left its full-year guidance unchanged, expecting Core organic revenue growth and improved margins, though it said growth is likely to moderate in the second half against tougher prior-year comparators.
