RWS Holdings PLC

Latest Results (29.05.2026):

RWS Holdings PLC — Half Year results for the six months ended 31 March 2025 (H1 FY2025, covering Q1–Q2 2025): reported revenue £344.3m (‑2% y/y; OCC +1.4%), adjusted profit before tax £18.0m (‑61% y/y), reported loss before tax £(12.7)m, adjusted basic EPS 3.6p (‑60%), and an unchanged interim dividend of 2.45p. The Group set out a new Generate/Transform/Protect growth strategy and reiterated FY25 adjusted PBT guidance of £60–70m.

Financial headline

Revenue £344.3m (H1 2024: £350.3m; reported ‑2%), adjusted EBITDA £38.1m (‑41%), adjusted PBT £18.0m (‑61%), reported (loss)/PBT £(12.7)m; adjusted PBT margin 5.2% (H1 FY24: 13.0%).

Profitability drivers

Margins compressed (gross margin 43.3% v 45.7% a year earlier) driven by weaker Regulated Industries, pricing pressure in Language Services, mix shift from TrainAI and APAC growth, increased amortisation and higher tech investment expensed (~£22m of non‑trading items noted).

Divisional performance

Language Services: £158.4m (46% of group) — OCC +4% led by TrainAI and APAC. L&CT: £71.2m — OCC +6%, SaaS licences grew (43% of licence revenues). IP Services: £49.1m — OCC +1% (impacted by PatBase divestment). Regulated Industries: £65.6m — reported down 9% and OCC down 7%.

AI & technology traction

AI‑centred products/services now c.26% of Group revenue (H1 FY24: 25%); 84% of localisation volume managed on LXD with ~60% MT first pass. Acquisition of Papercup IP to add dubbing/sub‑titling into Trados and support multimedia growth.

Cash, capital and balance sheet

Net debt £27.0m at 31 Mar 2025 (FY24: £12.9m) after payment of a £37m final dividend; cash £69.5m; drawn US$126.5m of US$220m RCF (headroom US$93.5m). H1 operating cash flow £37.2m; cash conversion 171% (skewed by NWC improvement).

Guidance and outlook

Group expects continued modest organic growth in H2 and low single‑digit OCC growth for FY25; reiterates adjusted PBT guidance £60–70m for FY25 (assumes H2 GBP/USD 1.33). Medium‑term targets and KPIs to be provided at FY25 results in mid‑December.

Strategy & organisational changes

New growth strategy to accelerate growth and improve earnings quality: three business units (Generate, Transform, Protect), regional sales teams, technology‑first proposition, automation/AI efficiency and cultural change. Group to operate under new structure from 1 Oct 2025.

Leadership and corporate actions

Appointed Christina Scott as Chief Product & Technology Officer and Joseph Ayala as EVP Strategy & Corporate Affairs; completed Papercup IP acquisition; launched new brand identity. Interim dividend maintained at 2.45p.