Renishaw plc Q4 2026 Earnings Recap

Renishaw reported higher FY26 revenue and profit, with margin improvement, while benefiting from favorable semiconductor-cycle demand. The shares rose 1.2% after results, a broadly neutral reaction; the company also noted lower cash conversion and plans to double production-asset CapEx in FY27.

Key Takeaways

• Revenue increased 14% to £816m (17% at constant FX); adjusted operating profit rose 36% to £153m, and EPS grew 30%.
• Group operating margin improved 3 percentage points to 18.7%, exceeding 21% in the second half; management attributed the uplift mainly to operating leverage, with restructuring also contributing.
• Position Measurement revenue grew 26%, led by semiconductor optical encoders and magnetic encoders for automation and robotics; operating margin rose 5 percentage points to 27.4%.
• Specialized Technologies revenue increased 43%, driven by additive manufacturing, but its operating margin was 4.4% despite an almost 18-point increase. Industrial Metrology revenue grew 4%, with margin broadly stable at just over 17%.
• Cash conversion declined to 79% from 91%, though it remained above the 70% target. FY27 CapEx on production assets is set to double, primarily for encoders; the proposed £0.70 special dividend will reduce H1 FY27 cash flow by £51m.