Rotork (ROR) H1 2026 earnings summary

Executive summary

• Delivered resilient H1 2026 performance with 1.3% OCC revenue growth and margin expansion, despite oil and gas disruptions and a challenging macro environment, driven by the Growth+ strategy.

• Strong growth in Chemical, Process & Industrial (CPI) and Water & Power segments offset Oil & Gas weakness; service and target segments showed notable growth, with service revenue rising to 24% of group sales.

• Board agreed to a recommended cash acquisition by ABB at 506p per share, representing a 73% premium to the undisturbed share price and valuing the company at £4.1 billion, with completion expected in H1 2027.

Financial highlights

• Orders received were £371.8m, down 4.9% year-over-year (OCC -4.0%); revenue grew 1.3% OCC to £367.2m.

• Adjusted operating profit rose 4.1% OCC to £82.2m; adjusted operating margin improved by 60bps OCC to 22.4%.

• Adjusted EPS increased 4.2% to 7.4p; cash conversion was 79%; ROCE at 36.5%.

• Interim dividend of 3.00p per share, up 1.7% year-over-year; £40m returned via share buybacks.

• Net cash at period end was £25.3m.

Outlook and guidance

• Group outlook unchanged; further progress expected on an OCC basis for 2026.

• Oil & Gas recovery from Middle East disruption to be gradual, with full-year divisional revenue slightly lower year-over-year.

• CPI outlook upgraded with continued strong demand, especially in data centers and specialty chemicals; full-year performance expected to be stronger.

• Water & Power expectations unchanged, with strong H2 order momentum and positive outlook driven by infrastructure investment.

• Ambition to deliver mid to high single-digit revenue growth and mid-20s adjusted operating margins over time.