Subdued oil and gas outlook clouds annual financial progress at Rotork
Rotork PLC on Tuesday reported increased sales and profit in 2025 but a softer oil and gas outlook sent its share price lower.
Shares in the Bath, England-based provider of flow control solutions plunged 12% to 322.20 pence each in London on Tuesday morning. It was the worst performing stock on the FTSE 250 which was up 1.9%.
Rotork said pretax profit rose 12% to £157.9 million in 2025 from £140.5 million the year prior.
Operating profit increased 16% to £157.1 million from £135.9 million with an operating margin of 20.2%, up from 18.0%.
Basic earnings per share improved 14% to 13.8 pence from 12.1p.
Revenue increased 3.0% to £777.3 million from £754.4 million, or by 3.7% at constant currency, driven by second half strength in Chemical, Process & Industrial and sustained growth in Water & Power, partly offset by customer-driven project delays in midstream Oil & Gas markets.
Order intake ticked up 6.0% to £782.6 million from £744.3 million.
Rotork said each division delivered mid-single digit order growth despite mixed end markets.
For 2026, Rotork expects continued good momentum in CPI and Water & Power. In Oil & Gas, the firm expects a ‘stable’ performance, with a higher second-half weighting.
Downstream markets are expected to remain stable, and upstream and midstream are anticipated to remain subdued.
RBC Capital Markets said the softer oil and gas outlook imply low to mid single digit percentage downside to consensus 2026 estimates.
Rotork Chief Executive Kiet Huynh said: ‘While we are mindful of the recent geopolitical uncertainty, we expect further progress on an [organic constant currency] basis for the group in 2026.’
Rotork said it remains ‘confident in our ability to deliver our financial ambition of mid to high single-digit sales growth and mid-twenties adjusted operating margins over time.’
The firm declared a final dividend of 5.35 pence per share, taking the total dividend to 8.30p, up 7.1% from 7.75p a year ago.
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