Bodycote (LON:BOY – Get 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.
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Bodycote Company Profile
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.
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