Oxford Instruments Delivers Strong H2 Performance, Meets Full-Year Expectations
Why we think this is good
The trading update from Oxford Instruments plc indicates a strong second half performance, with full-year results expected to be in line with market expectations. The company has delivered robust revenue growth of around 9% at constant currency, along with a 13% increase in adjusted operating profit. This solid operational performance, combined with a healthy balance sheet, suggests the business is well-positioned despite some macro volatility. However, the company's valuation appears quite high, which could make the shares vulnerable to profit-taking after the results.
Key Points
- Full-year revenue growth expected to be around +9% at constant currency (+6% at actual rates)
- Full-year adjusted operating profit expected to be up around 13% on a constant currency basis (3% at actual rates)
- Imaging & Analysis division grew orders and revenue, maintaining excellent operating margin above 24%
- Advanced Technologies division delivered strong double-digit constant currency revenue growth
Summary
Oxford Instruments plc has issued a trading update for the year ended 31 March 2025, reporting a strong full-year performance in line with expectations. Revenue growth in the second half has been strong, resulting in full-year revenue growth expected to be around +9% at constant currency (+6% at actual rates) versus the prior year. Demand has remained healthy, with 3% year-on-year order growth at constant currency. Full-year adjusted operating profit is expected to be up around 13% on a constant currency basis (3% at actual rates), in line with market expectations. The company's Imaging & Analysis division, which represents two-thirds of Group revenue, has performed well, growing both orders and revenue whilst maintaining an excellent operating margin above 24% at constant currency. The Advanced Technologies division has also delivered strong double-digit constant currency revenue growth.