Shares in specialist engineering firm Renishaw (LON:RSW) jumped after the company raised its FY26 sales and profit guidance. In its trading update for the quarter to in June, the firm said it had seen ‘accelerating growth’ throughout the year.
Growth accelerating
Renishaw is a leading supplier of measuring and production systems, which offer a high degree of accuracy and precision in manufactirung. In its H1 update, the firm said it had seen growth accelerate across its divisions and an increase in its operating margin despite currency headwinds.
The firm also reported ‘significant’ progress in its emerging businesses, and introduced new products in Industrial Metrology amd Specialised Technologies. In Metrology, there was strong demand in the Americas and the consumer electronics sector in Asia. In Specialised Technologies, it saw ‘particularly strong’ demand for its additive manufacturing systems from European and US defence customers.
Today, the group said Q4 sales had jumped 27% year-on-year and 18% quarter-on-quarter. It therefore expects FY sales to come in at £815 million, up 14% and above market expectations of £795 million.
The firm reiterated demand had stayed strong in the semiconductor and electronics manufacturing equipment sector and in the aerospace and defence sector. FY pre-tax profit is expected to reach £167 million, up 31% and well above the £138 million consensus.
Renishaw has been on our radar all year, and we obviously aren’t alone as the shares have gained 50%. It’s yet another example of a specialist UK engineering firm whose products are now hugely prized due to structural shifts.
A surge in global defence spending and increased demand for semiconductors and consumer electronics have created major tailwinds for Renishaw’s businesses. We just hope the company stays independent long enough for invcestors to enjoy the full fruits of its labours.
