Full Year 2025 Rotork PLC Earnings Call Transcript
Key Points
- Rotork PLC (RTOXF) reported a 6% order growth on an organic constant currency (OCC) basis, with all divisions contributing to this growth.
- Adjusted operating profits increased by 10% OCC, with margins improving by 140 basis points to 24.6%.
- The company's Growth+ strategy has been effective, driving strong performance and helping to outperform weaker underlying markets.
- Rotork Service, a strategic growth area, now represents 24% of group sales, showing continued momentum.
- The company has made significant progress on its sustainability agenda, achieving its Scope 1 and 2 emissions targets ahead of plan and raising its 2030 ambition to a 60% reduction.
- Oil & Gas division experienced customer-driven project delays, impacting revenue growth in the second half of the year.
- Net cash ended the year lower due to the GBP40 million acquisition of Noah and GBP60 million in share buybacks.
- The company faced a foreign exchange translation headwind of GBP15.9 million, affecting reported revenue growth.
- Despite good growth in LNG, midstream revenues were softer in the second half due to customer-driven project deferrals.
- The broader chemicals environment has been challenging, with pressure in the bulk chemicals market affecting overall performance.
Good morning, everyone. Thank you for joining us today for our 2025 full year results presentation. Alongside me is Ben Peacock, our CFO. We're pleased to have the opportunity to walk you through our performance for the year and we will follow our normal format with time for Q&A at the end. I'm pleased with the progress made in 2025 as we continue to execute on the Growth+ strategy and would like to thank all our staff at Rotork.
Growth+ continues to deliver because of their hard work, dedication and commitment. I'd also like to take a moment to acknowledge our staff and their families in the Middle East given the current conflict in the region. Our priority has been their safety, and I'm pleased to say all are safe and well, and we will continue to monitor the ongoing developments closely.
Moving now to the key financial highlights. Order growth of 6% on an OCC basis was particularly pleasing with each division driving mid-single-digit OCC growth despite mixed end markets. Sales grew 3.7% OCC. And when including
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