Rotork Q4 Earnings Call Highlights

Rotork (LON:ROR) reported 2025 full-year results that absorption said reflected continued advancement nether its Growth+ strategy, with integrated changeless currency (OCC) bid maturation of 6% and expanding profitability contempt mixed extremity markets and late-year task deferrals successful lipid and gas.

Orders received were £783 million, up 6% year-over-year connected an OCC basis, with each divisions delivering growth. Revenue totaled £777 million, rising 3.7% connected an OCC ground and 3% connected a reported basis. Chief Financial Officer Ben Peacock said overseas speech translation created a £15.9 cardinal headwind to reported revenue.

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Adjusted operating nett was £191.5 million, up 10% OCC, and the adjusted operating borderline accrued to 24.6%, up 140 ground points connected an OCC basis. Peacock said premix and operating leverage supported borderline expansion, and that terms increases much than offset wage inflation. On a reported basis, the radical faced a £6.1 cardinal currency headwind to operating profit, reducing reported borderline progression by astir 30 ground points.

Adjusted net per stock were £0.17, up 6.9% connected a reported basis. Return connected superior employed accrued to 38.4%. Rotork projected a full-year dividend of £0.083 per share, up 7.1% from the anterior year.

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Rotork generated operating currency conversion of 101%, down from the anterior twelvemonth owed to accrued moving superior from transportation phasing successful the 2nd half. Working superior to income was 26.8%. Free currency travel was £106.8 million, little than the anterior year, reflecting moving superior concern and higher concern translation costs.

Net currency ended the twelvemonth astatine £65 million. Peacock said the alteration was expected fixed superior deployment during the year, including a £40 cardinal acquisition and £60 cardinal of stock buybacks. Year-end nett currency comprised £110 cardinal of currency and currency equivalents, offset by £23 cardinal of lease liabilities and £22 cardinal of borrowings nether the group’s £75 cardinal revolving recognition facility.

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Management said it returned £67 cardinal via dividends and £60 cardinal via buybacks during 2025. The institution besides noted £2 cardinal of contingent information related to the Noah Actuation acquisition, bringing the full acquisition outgo to £42 million.

Alongside results, Rotork announced the disposal of 2 “small non-core” businesses for a combined £24 million, which absorption said had 2025 income of £15 million.