Bodycote PLC

BOY

Equity

ISIN GB00B3FLWH99 / Valor 4859074

LSE London Stock Exchange, SETS (2026-10-13)

GBP 9.10-0.11%

Bodycote PLC
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About company

Bodycote PLC is the world's largest provider of heat treatment and thermal processing services, specializing in Hot Isostatic Pressing (HIP) technology to eliminate porosity in castings and consolidate powders. With the largest operational capacity in the Western world, Bodycote offers a wide range of services to accommodate both small products and large components economically. The company's heat treatment processes alter the microstructure of materials like metals and alloys, while their specialized coatings protect components from environmental factors like corrosion and abrasion. Bodycote's extensive list of accreditations and proprietary technologies demonstrate their commitment to providing high-quality, reliable services to clients across various industries.

Summarized from source with an LLMView SourceSector: Industrials

Revenue and market momentum

Group revenue £727.1m (-4.0%); Core revenue £671.6m broadly stable organically (-0.3%). Momentum improved in H2 with Core organic +3.2% year‑on‑year. End‑markets were mixed: Aerospace & Defence (A&D) and Industrial Gas Turbines (IGT) accelerated, Oil & Gas fell sharply and Automotive/Industrial remained weak.

Profitability and margins

Adjusted operating margin was 15.7% (FY24: 17.0%, -130bps) reflecting mix headwinds from lower high‑margin Oil & Gas work and weak Automotive/Industrial volumes. Optimise delivered ~£4m of savings in 2025 partially offsetting margin pressure.

Earnings and tax

Adjusted basic EPS 44.4p (down 8.6%); statutory EPS 31.0p (up markedly). Adjusted profit before tax £105.2m; statutory profit before tax £74.5m. Adjusted tax rate ~24.9% (FY25).

Cash flow, capex and balance sheet

Adjusted operating cash flow £88.6m (FY24: £115.5m); free cash flow £47.5m (FY24: £70.6m). Capital expenditure increased to £77.0m to fund growth projects. Closing net debt excluding leases £104.8m (FY24: £68.3m) — leverage ~0.6x EBITDA — and total net debt including leases £165.6m.

Optimise programme & portfolio actions

Optimise expanded and progressed: sale of ten Non‑Core French sites for ~£19m, eight other closures/consolidations completed, and ~£4m run‑rate benefit delivered in 2025. Targetting at least £15m run‑rate savings by mid‑2027 and ~100bps margin uplift from the Perform programme by 2028.

Divisional performance

Specialist Technologies revenue down c.3.7% organic (impacted by ~40% drop in Oil & Gas revenues); adjusted margin 27.1%. Precision Heat Treatment organic +1.3% with margin 16.0% (down 150bps) due to low volumes in Automotive/Industrial.

Capital allocation and shareholder returns

Returned ~£100m to shareholders in 2025 (dividends £40.9m, buybacks £57.6m). Bought back £120m since 2024 and announced a further £80m buyback to complete by end‑2027. Continued disciplined M&A: acquisition of Spectrum Thermal Processing (A&D, Rhode Island) completed January 2026.

Outlook

Management expects Core organic revenue growth and improved operating margins in FY26 driven by A&D and IGT strength plus further Optimise benefits, while noting near‑term weakness in Automotive/Industrial and elevated geopolitical uncertainty. Summarized from source with an LLMView Source

Key figures

37.6%1Y

50.0%3Y

11.6%5Y

Performance

42.0%1Y

33.7%3Y

33.1%5Y

Volatility