Bodycote profit advances in first half, streamlining plan pushes ahead

Bodycote PLC on Tuesday posted higher profit in the first half of 2026 and reaffirmed its potential heading into the second part of the year, as it continued to progress its streamlining plan.

The Macclesfield, England-based provider of heat treatment and specialist metallurgical technology services reported pretax profit of £41.2 million in the six months that ended June 30, up from £36.6 million year earlier.

Revenue advanced 3.3% to £381.2 million from £369.0 million, with core revenue, which excludes non-core sites that are part of the company's 'optimise' programme, rising by 9.6% on-year to £372.0 million.

This programme was introduced in 2024 and framed as a way to improve the business by "closing sites, that were utilising older less efficient, and more carbon intensive technologies". Bodycote extended the programme in July last year and at the end of last month, said it had announced all planned closures, most of which had already completed.

The board has approved an interim dividend of 7.2 pence per share, which represents an increase of 4.3% from 6.9p the previous year.

Bodycoted noted "strong growth" in Aerospace & Defence, Industrial Gas Turbines, Medical and Semiconductors, which was "partly offset by continued weakness in Automotive, particularly in Europe".

Looking ahead to all of 2026, the company left its guidance unchanged, targeting organic revenue growth and margin improvement, thanks in part to the 'optimise' programme, and in spite of an anticipated uptick in variable pay and growth investment costs.

In the second half, Bodycote is looking to make further strategic progress, though Chief Executive Jim Fairbairn cautioned that the pace of revenue growth is likely to moderate, "reflecting prior-year comparators". Bodycote remains confident in its medium-term goals.

"We progressed well in the first half and have achieved results in line with our expectations. Organic growth was supported by strong demand across our target end markets, partly offset by the ongoing structural weakness in Western European Automotive," noted CEO Fairbairn.

"We continue to execute on our 'optimise, perform and grow' strategy. In light of the success of the 'optimise' programme to-date, as well as continued challenges in some of our Automotive and Industrial regional markets, we are exploring the potential to expand the programme's scope. In 'perform', we have rolled-out more advanced operational excellence tools, starting at four key 'lighthouse sites'. In 'grow', the Spectrum acquisition has integrated well. We are continuing to progress with both organic investments and further M&A opportunities.

Our full year expectations are unchanged, albeit we are mindful of the current geopolitical and macroeconomic environment."

Bodycote shares rose 1.0% to 695.84p each on Tuesday morning in London.

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