Bodycote (LON:BOY) Posts Earnings Results

Bodycote (LON:BOYGet Free Report) released its quarterly earnings data on Tuesday. The company reported GBX 18.10 EPS for the quarter, Digital Look Earnings reports. Bodycote had a return on equity of 8.58% and a net margin of 7.55%.

Here are the key takeaways from Bodycote’s conference call:

  • Strong first-half performance: Core organic revenue grew 9.6%, led by Aerospace & Defense, industrial gas turbines and a recovery in medical, more than offsetting a 4.4% decline in automotive. Adjusted EPS increased 18.3% to £0.252.
  • Group operating margin improved 110 basis points to 16%, supported by the Optimise restructuring program, lower-cost operations and reduced exposure to low-margin non-core activities. Management expects further Optimise benefits and volume leverage in the second half.
  • Optimise remains on track, with 29 of 31 planned footprint actions expected to be completed by year-end and at least £15 million of annualized benefits targeted by mid-2027. The company is evaluating a further phase focused mainly on structurally challenged automotive operations, but acknowledged that returns may be less attractive than in the initial phase.
  • Full-year guidance was reaffirmed, although second-half growth is expected to moderate because of tougher comparisons and core margins remain subject to variable-pay normalization and new-site investment costs. Capital expenditure is expected near the lower end of the previously guided £80 million–£90 million range, while the company continues its £80 million buyback and selective M&A strategy.

Bodycote Trading Down 1.4%

BOY opened at GBX 679.06 on Tuesday. The firm’s fifty day simple moving average is GBX 714.37 and its 200 day simple moving average is GBX 713.61. Bodycote has a 12 month low of GBX 566.50 and a 12 month high of GBX 850. The stock has a market capitalization of £1.15 billion, a P/E ratio of 21.91, a P/E/G ratio of 1.44 and a beta of 1.35. The company has a current ratio of 1.15, a quick ratio of 0.74 and a debt-to-equity ratio of 29.80.

Analyst Upgrades and Downgrades

Separately, Deutsche Bank Aktiengesellschaft upgraded Bodycote to a “buy” rating and raised their target price for the stock from GBX 835 to GBX 960 in a report on Thursday, May 28th. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 850.83.

View Our Latest Analysis on BOY

Bodycote Company Profile

(Get Free Report)

The leading provider of heat treatment and specialist thermal processing services worldwide.

Heat treatment encompasses a variety of techniques and specialist engineering processes which improve the properties of metals and alloys and extend the life of components and is a vital part of any manufacturing process.

Bodycote is uniquely placed via our global network and the experience and knowledge of our people to offer high quality, reliable and cost-effective services to manufacturers whatever their size or market sector.

Further Reading

Earnings History for Bodycote (LON:BOY)

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