Oxford Instruments (LSE:OXIG) on Thursday reiterated its full-year outlook in a third-quarter trading update, citing robust order momentum that lifted the group’s year-to-date book-to-bill ratio to 1.2x.
The strongest performance came from the Advanced Technologies division, where year-to-date order intake rose 44.5% year on year on a constant currency basis. This marked a notable acceleration from the 25% growth recorded in the first half and has extended order book visibility well into the 2027 financial year.
Momentum also improved within the group’s core Imaging and Analysis division, with third-quarter orders increasing by 2.4%. This represents a turnaround from earlier periods, following declines of 11.4% in the first quarter and 0.5% in the second. The division’s year-to-date book-to-bill ratio now stands at 1.1x, indicating a return to more balanced demand.
Oxford Instruments said cost reduction initiatives implemented during the first half at its Belfast imaging operations are delivering the anticipated benefits in the second half of the year.
The group also highlighted recent balance sheet actions. It completed the sale of its NanoScience business on 2 January 2026, generating net proceeds of £48.5 million after final working capital and debt-like adjustments. In addition, the company finalised a buy-in of its defined benefit pension scheme in December, which will remove pension contribution requirements from the 2027 financial year, compared with an expected £5.25 million contribution in 2026.
Management reaffirmed guidance for the 2026 financial year, with earnings before interest, tax and amortisation (EBITA) expected to be in the range of £70.2 million to £73.0 million, broadly in line with market expectations. Currency assumptions were also unchanged, with foreign exchange anticipated to represent an approximate £5.5 million headwind to EBITA for the year.
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