Rotork (LSE:ROR) delivered steady first-half trading, with revenue rising 1.3% on an organic constant currency basis to £367.20 million. The result was slightly below the £369 million consensus forecast compiled from two analysts.
During the period, the industrial flow control specialist completed its previously announced £40 million share buyback programme. The company also confirmed that it has received a recommended cash takeover offer from ABB.
Profit Margins Improve Despite Mixed End-Market Performance
Adjusted operating profit increased to £82.20 million, ahead of the £78 million forecast from a single analyst. However, pre-tax profit totalled £71.40 million, falling short of the £79 million consensus estimate from two analysts.
The group reported an adjusted EBIT margin of 22.4%, while the reported operating margin reached 19.6%, reflecting continued margin improvement during the period.
Growth within the Chemical, Process & Industrial (CPI) and Water & Power divisions helped offset weaker trading in the Oil & Gas business. Activity in the energy segment was affected by geopolitical tensions in the Middle East and continued restraint in customer capital expenditure.
Service revenues continued to outperform the wider business, accounting for 24% of total group revenue. The increase was driven primarily by strong demand across the CPI and Water & Power operations.
Full-Year Guidance Remains Unchanged
Rotork recorded first-half order intake of £371.80 million and said improvements in profitability were supported by operating leverage, disciplined cost control and a favourable sales mix.
Management reaffirmed its outlook for the 2026 financial year, continuing to expect organic revenue growth at constant exchange rates.
The company also expects the Water & Power division to benefit from a healthy order book during the second half of the year, while revenue from the Oil & Gas segment is forecast to decline slightly compared with 2025.
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