Carclo (LSE:CAR) has maintained its full-year expectations, reporting underlying operating profit and return on sales in line with its forecasts despite slightly lower year-to-date revenue.
The precision engineering group said the revenue performance reflected the phasing of tooling programmes and a slower first quarter for its U.S. Manufacturing Solutions business. Volumes increased during the second quarter, particularly within Manufacturing Solutions.
In EMEA, Manufacturing Solutions continued to report revenue growth and margins from its automated, high-volume operations. Carclo said some life sciences diagnostics customers were experiencing lower demand as they reduced inventory levels.
The Speciality division recorded volume growth, supported by demand from aerospace customers. The group has also added precision machining capacity in France as part of its European operations.
Design and Engineering revenue was broadly unchanged year-on-year, while margins improved. Carclo said customer activity in the U.S. was increasing following a higher level of activity in the second half of the previous year, while it expects its EMEA operations to recover later in the current financial year.
The company reported working capital outflows and higher net debt as of July. Management expects these movements to reverse by the end of the second quarter, with net debt excluding leases anticipated to be broadly in line with the prior-year level.
Carclo expects trading to be weighted towards the second half of the financial year, based on anticipated demand through late 2026 and early 2027, order activity and new programme launches. The board left its full-year expectations unchanged.
The group is scheduled to publish interim results for the six months ending 30 September 2026 in November.
More about Carclo plc
Carclo plc is a London-listed precision engineering group serving the Life Sciences, Aerospace and Safety & Security markets.
Its operations include Manufacturing Solutions, Design & Engineering and Speciality components, with manufacturing activities in EMEA and the United States.
The group provides automated manufacturing, tooling, design and precision machining services for customers including civil and defence aerospace and life sciences companies. Its current corporate strategy is known as Precision 2030.
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