Renishaw PLC (LSE:RSW) saw its shares decline 4.3% on Thursday after reporting first-quarter revenue below market expectations, as sharp weakness in the EMEA region overshadowed gains in other markets.
Revenue rose 2.8% at constant currency for the quarter ended September 30, falling short of the 4.6% growth forecast for fiscal 2026. At actual exchange rates, revenue slipped 1.8% to £170.8 million, down from £173.9 million a year earlier. The company noted that 1.2 percentage points of constant currency growth came from surcharges in the Americas to offset tariff duties—indicating that underlying organic growth remained limited.
The EMEA region was the main drag, with revenue plunging 20.5% at constant currency. The company cited weak demand for Industrial Metrology sensors from machine tool builders and lower laser encoder sales. It also noted that the planned implementation of a new ERP system impacted September revenue, though it expects to recover this shortfall in Q2.
“Despite the continued global uncertainty, the structural drivers that underpin our markets are presenting growth opportunities across our businesses,” said Renishaw in its trading update, maintaining expectations for “steady revenue growth” for the year.
The company completed its £20 million operating cost reduction program during the quarter, trimming its workforce by 350 employees, or 6.5% compared to the end of fiscal 2025.
Outside EMEA, performance was more encouraging: order books strengthened in the Americas and APAC regions, with revenue up 11.2% and 14.7% respectively at constant currency. New product launches—including the Equator-X dual method shopfloor gauge and MODUS IM Equator metrology software—were also well received.
Renishaw said it continues to advance productivity initiatives to improve efficiency and returns, with medium-term targets including operating margins above 20%.
Leave a Reply