Bodycote reports solid growth in first half

(Sharecast News) - Bodycote reported a 3.3% increase in first-half revenue to £381.2m on Tuesday, with organic growth of 6.5%, while adjusted operating profit rose 10.7% to £61.0m and the adjusted operating margin improved 110 basis points to 16.0%. Core organic revenue grew 9.6% to £372.0m, driven by strong demand in aerospace and defence, industrial gas turbines, medical and semiconductors, partly offset by continued weakness in automotive, particularly in Europe.

Adjusted basic earnings per share increased 18.3% to 25.2p, while the interim dividend was lifted 4.3% to 7.2p.

The FTSE 250 heat treatment specialist left its full-year outlook unchanged, expecting core organic revenue growth and improved margins in 2026 as benefits from its Optimise programme offset higher variable remuneration and costs associated with growth investments.

"We progressed well in the first half and have achieved results in line with our expectations," said chief executive Jim Fairbairn.

Bodycote said it was considering expanding the Optimise programme to additional sites exposed to challenging automotive and industrial markets, while remaining confident in delivering its medium-term targets.

At 0911 BST, shares in Bodycote were up 2.26% at 704.54p.

Reporting by Josh White for Sharecast.com.

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