- Bodycote
- 27 May 2025 08:57:07
Source: Sharecast
Bodycote said core revenues were down 5% year-on-year on an organic basis, while overall group revenues were 6% lower at £246.0m, reflecting a 1% headwind from lower energy surcharges year-on-year and a strong prior year comparator.
However, Bodycote also stated it had delivered a sequential run-rate improvement of 4% versus H224, with almost all end markets seeing sequential improvement.
The FTSE 250-listed group said supply chain conditions had improved in the civil aerospace sector during the first four months of FY25, with a "notable acceleration" in March and April. Defence revenue also saw continued growth, led by Western Europe.
Bodycote did note that conditions "remain challenging" in automotive and industrial markets, though also said it has seen "a sequential improvement in activity levels".
When discussing Donald Trump's "Liberation Day" tariffs, Bodycote said it was "closely monitoring" ongoing global trade discussions and announcements but noted that its diversified, local-for-local plant footprint meant that it had "no material direct exposure to cross-border tariffs".
"Our outlook for the full year is in line with current market expectations. Adjusted operating profit in 2025 is expected to be second-half weighted. This reflects the progressive delivery of Optimise benefits through the year, as well as improved performance in specialist technologies supported by new contracts we have won in defence and oil & gas, and further growth in aerospace & defence," said Bodycote.
"Reflecting the uncertain macro-economic environment, our focus is on operational delivery and maintaining strict control of our cost base. We are progressing at pace with our optimise, perform & grow initiatives which will enhance the quality of the business and ensure we are well positioned for the future."
As of 0855 BST, Bodycote shares were up 3.13% at 543.0p.
Reporting by Iain Gilbert at Sharecast.com