Bodycote plc (LSE:BOY) reported full-year 2025 results that came in ahead of analyst forecasts, with adjusted earnings per share reaching 44.4p, around 2% above consensus estimates. Alongside the results, the company announced a new £80m share buyback programme.
Revenue for the year ended 31 December 2025 was £727.1m, down 4.0% from £757.1m in the previous year and 3% lower on a constant currency basis. Adjusted operating profit declined 11.4% to £114.3m from £129.0m, with the adjusted operating margin narrowing by 130 basis points to 15.7%.
Core revenue held relatively steady at £671.6m, slipping only 0.3% organically for the year. Trading improved during the second half, however, with year-on-year growth of 3.2%. Following the announcement, the company’s shares rose around 1.8%.
Bodycote said it expects core organic revenue growth and stronger operating margins in 2026. Demand remains solid in the aerospace and defence sector as well as in industrial gas turbines, although conditions in automotive and broader industrial markets are expected to remain challenging.
“2025 was a year of significant progress in executing our strategy, improving the quality of the Group’s portfolio and positioning us for growth,” said Jim Fairbairn. “The Optimise programme is well underway and is delivering benefits in line with our expectations.”
The Optimise programme generated roughly £4m in cost savings during 2025, with a similar incremental contribution expected in 2026. During the year, Bodycote also completed the sale of 10 non-core sites in France, receiving net proceeds of £19m from the disposal in November.
Adjusted profit before tax reached £105.2m, exceeding analyst expectations, while statutory operating profit rose to £83.6m from £37.9m in the prior year due to lower exceptional charges.
The newly announced £80m share buyback programme is expected to be completed by the end of 2027. This follows £120m of share repurchases carried out since 2024. Net debt, excluding lease liabilities, stood at £104.8m at year-end, equivalent to around 0.6 times EBITDA.
The board maintained the company’s full-year ordinary dividend at 23.0p per share.
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