Oxford Instruments (LSE:OXIG) delivered full-year 2025/26 results that came in slightly ahead of expectations, with a stronger second-half performance helping to offset challenges experienced earlier in the year, particularly within its Imaging & Analysis division. Group revenue declined 4.6% to £423.2 million, while adjusted operating profit fell 7.3% to £73.7 million. However, reported operating profit increased significantly compared with the previous year, which had been affected by impairment charges, and operating margins improved on a constant-currency basis.
The company continued to reshape its portfolio during the year through the disposal of its NanoScience business, a move that has increased management focus on higher-growth areas while enhancing profitability. The transaction contributed to a rise in net cash to £94 million and supported both a £62.2 million share buyback programme and a 6.3% increase in the dividend. Within the Advanced Technologies division, orders grew by 28%, driving the order book to a record level and providing strong visibility for revenues extending into the 2027 and 2028 financial years. The group is increasingly targeting opportunities in compound semiconductors and high-volume manufacturing markets while navigating an uncertain geopolitical and macroeconomic backdrop.
Oxford Instruments’ outlook remains supported by healthy profitability, solid cash generation and positive share price momentum, with the stock continuing to trade above key moving averages. These strengths are balanced by a relatively demanding valuation, reflected in a price-to-earnings ratio of approximately 22.3 and a modest dividend yield. While management remains optimistic about future trading, investors are also weighing the impact of recent operational disruptions, currency-related headwinds and ongoing weakness within the Imaging & Analysis segment.
More about Oxford Instruments
Oxford Instruments is a UK-based FTSE 250 technology company that develops and supplies advanced scientific instruments, software and specialist expertise to customers in both research and commercial markets. Its products are used across a range of industries, including materials analysis, semiconductor manufacturing, healthcare and life sciences.
Established in 1959 as the first company spun out from Oxford University, the group has grown into a global technology business that helps bridge the gap between scientific discovery and industrial application. Through continued investment in innovation, particularly in areas such as compound semiconductors, advanced imaging and precision measurement technologies, Oxford Instruments aims to benefit from long-term trends including increased research spending, digitalisation and the transition towards more sustainable technologies.
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