London · Delayed Price · Currency is GBP · Price in GBX Senior Earnings Call Transcripts
Fiscal Year 2025
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Strong 2025 results with 6% revenue growth at constant FX, 22% higher adjusted operating profit, and robust cash generation. Aerospace led growth, Flexonics remained resilient, and the balance sheet strengthened, supporting a 25% dividend increase.
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Strong H1 2025 results with 5% revenue and 14% adjusted operating profit growth in continuing operations. Aerostructures sale to fund debt reduction and a GBP 40 million share buyback; medium-term targets reaffirmed, with robust performance in Aerospace, Flexonics, and Spencer Aerospace.
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Sale of the Aerostructures business for up to EUR 200 million supports a strategic shift to focus on higher-margin FCTM operations. Proceeds will fund a EUR 40 million share buyback and reduce debt, with the transaction expected to be accretive to margins and returns.
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Transitioning to a pure-play FCTM business, new medium-term targets include double-digit margins and 15%-20% ROCE. Margin expansion is driven by pricing, volume, and operational efficiency, with strong cash generation and disciplined capital allocation. Aero structures sale is nearing completion.
Fiscal Year 2024
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Revenue and profits grew in 2024 despite Boeing and Airbus disruptions, with strong free cash flow and a 4% dividend increase. Aerospace outperformed, Flexonics was resilient, and Spencer Aerospace delivered robust growth. 2025 guidance anticipates further growth, especially in H2.
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Revenue grew 5% year-on-year, with Aerospace up 13% and Flexonics down 9%. Temporary headwinds from Boeing strikes and Airbus supply chain issues will lower H2 Aerospace performance, but full-year profits are still expected to exceed 2023. Cost controls and cash management actions are in place.
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Revenue and profits grew year-over-year, led by strong aerospace performance and resilient Flexonics margins. Order book and contract wins support a positive outlook, with H2 expected to outperform H1. Strategic review of Aerostructures and sustainability progress continue.