11th Mar 2026 11:20
(Alliance News) - Bodycote PLC on Wednesday posted strong annual profit gains, despite a weaker top line, and expressed optimism around revenue and margin improvements for 2026.
The Macclesfield, England-based thermal processing firm posted GBP74.5 million in pretax profit in 2025, more than doubling from GBP28.4 million in 2024.
Revenue however fell 4.0% to GBP727.1 million from GBP757.1 million, with Bodycote stating this decline was reflective of "disposals and the closure and consolidation activity under the Optimise programme".
The earnings gain despite the top-line contraction is owed to a reduction in costs, namely in exceptional items, which fell 73% to GBP20.9 million from GBP78.3 million.
Bodycote declared a final dividend of 16.1 pence, flat with the prior year. This brought its total dividend to 23.0p, also flat.
Looking ahead, the company sees core organic revenue growth in 2026, with this driven by continued strong demand in Aerospace & Defence, and Industrial Gas Turbines. Bodycote added that conditions in both Automotive and Industrial Markets are expected to "remain challenging" in the near term.
The company also expects operating margins to improve in 2026.
Bodycote on Wednesday launched a new GBP80 million buyback programme, with this expected to be completed in two tranches worth up to GBP40 million each.
The company expects this to complete by the end of next year.
Shares in the company were up 1.8% at 721.00 pence each on Wednesday morning in London.
"2025 was a year of significant progress in executing our strategy, improving the quality of the group's portfolio and positioning us for growth. The Optimise programme is well underway and is delivering benefits in line with our expectations," said Chief Executive Jim Fairbairn.
"In 2026 we expect to deliver core organic revenue growth, supported by continued strong demand in Aerospace & Defence and Industrial Gas Turbines. Reflecting the subdued economic backdrop, conditions in Automotive and Industrial Markets are expected to remain challenging in the near term, though we are well positioned to capitalise when demand recovers...We are mindful of the current elevated geopolitical uncertainty and continue to monitor the situation closely. "
By Christopher Ward, Alliance News reporter
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