Rotork (ROR) H2 2025 earnings summary

Executive summary

• Achieved strong performance in 2025, driven by the Growth+ strategy and all divisions contributing to growth and resilience despite mixed end markets and project delays in oil and gas.

• Order growth of 6% OCC and sales growth of 3.7% OCC, with adjusted operating profit up 10% OCC and margins rising to 24.6%.

• Strategic focus on target segments, electrification, digitalization, and service expansion led to outperformance in specialty chemicals, marine, mining, critical HVAC, and water infrastructure.

• Rotork Service now represents 24% of group sales, growing ahead of the group and supporting margin progression.

• Accelerated capital deployment with £167m spent in 2025, maintaining a strong balance sheet.

Financial highlights

• Orders received at GBP 783 million, up 6% OCC year-over-year; revenue at GBP 777 million, up 3.7% OCC, with a GBP 15.9 million FX headwind.

• Adjusted operating profit of GBP 191.5 million, up 10% OCC; adjusted operating margin at 24.6%, up 140 bps OCC.

• Adjusted EPS increased 6.9% to GBP 0.17; proposed dividend up 7.1% to GBP 0.083 per share.

• Net cash at year-end GBP 65 million after GBP 40 million Noah acquisition and GBP 60 million share buybacks.

• Free cash flow of GBP 106.8 million, reflecting strong operational performance and disciplined investment.

Outlook and guidance

• Expect continued momentum in target segments and service in 2026, with mixed underlying end markets.

• Oil and gas expected to be stable with higher H2 weighting; CPI and water & power divisions anticipate continued growth.

• Capital expenditure guidance for 2026 at GBP 15 million; business transformation investment at GBP 25 million.

• Currency impact expected to be neutral in 2026.

• Monitoring Middle East developments; too early to assess direct impacts.