Bodycote (LSE:BOY) saw its stock jump about 13% on Wednesday in London after announcing an additional £30 million share repurchase program and confirming its full-year outlook. This latest buyback raises the total allocation to £120 million.
The company reiterated that it remains on track to meet full-year expectations, anticipating stronger performance in the second half, supported by a continued recovery in aerospace markets and recent contract wins.
In the first half, Bodycote reported sales of £369 million, EBITA of £55.1 million, and an operating margin of 14.9%. Headline earnings per share came in at 21.3p.
Net debt increased to £112.5 million, reflecting the effects of the buyback and dividend payouts.
RBC analysts viewed the results positively and in line with guidance. “We continue to see Bodycote as having an attractive end market mix, with further earnings growth potential from self-help,” said Mark Fielding’s team.
They maintained an Outperform rating with a price target of 650p.
Although shares have rebounded from April lows, they still trade 13% below this year’s peak, suggesting potential for a re-rating if Bodycote delivers on second-half expectations.
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