Rotork plc's Half-Year Earnings Exceed Expectations, Analysts Expect Strong Growth Ahead

Rotork plc reported H1 revenues of £367m and statutory EPS of £0.12, in line with analyst predictions. Analysts expect FY25 revenues of £788.7m, a 3.7% improvement from last year, and EPS of £0.14, a 16% increase. The consensus price target remains at £3.81 despite a small decline in earnings per share forecasts.

Rotork plc (LON: RTO) has released its H1 2025 interim results, showcasing strong order intake and revenue growth, despite a volatile macroeconomic backdrop. The company's order intake for the period reached £391.1m, up 4.5% year-on-year (YoY), while revenue climbed to £367.3m, a 1.6% increase YoY [1].

Key highlights include a 10.1% YoY growth in adjusted operating profit to £80.8m, with an adjusted operating margin of 22.0%. The company's return on capital employed (ROCE) remained robust at 37.0%, reflecting strong margins and disciplined capital allocation. Rotork also completed the acquisition of Noah and returned £22m to shareholders through a share buyback [1].

The company's interim dividend was increased to 2.95 pence per share, representing a 7.3% YoY growth. Rotork expects to complete the remaining share buyback by the end of the year. The company's full-year expectations remain unchanged, with analysts forecasting FY25 revenues of £788.7m, a 3.7% improvement from last year, and earnings per share (EPS) of £0.14, a 16% increase. The consensus price target stands at £3.81, despite a slight decline in EPS forecasts [1].

Rotork's Chief Executive, Kiet Huynh, commented on the results, highlighting the company's strong order performance across all divisions, particularly in the Water & Power segment. He expressed confidence in further growth in the second half of the year, supported by order-book visibility and a robust project pipeline. The company's strategic focus, business model, and dedication of its people are driving results, with Target Segment sales up 7% and Rotork Service growing ahead of the group, contributing 23% of Group revenues [1].

References:
[1] https://www.directorstalkinterviews.com/rotork-plc-grows-orders-and-profit-in-h1-fy-outlook-reaffirmed/4121210763