EMEA weakness hits Q1 sales for Renishaw

(Sharecast News) - The share price of manufacturing systems group Renishaw fell on Thursday after exchange rate movements weighed heavily on its top-line performance in the first quarter, with heavy declines in the EMEA region. The company, which specialises in metrology, motion control and precision machining, reported revenues of £170.8m for the three months to 30 September, down 1.8% on last year at actual exchange rates.

Renishaw said market conditions remained "mixed" around the world, with 6.6% revenue growth in the larger APAC region (to £84.4m) and 5.7% growth in the Americas (to £43.8m) offset by a 20.1% drop in EMEA (to £42.6m).

The EMEA declines were due to weak demand for industrial metrology (IM) sensors from machine tool builders and falling sales of laser encoders for wafer inspection applications. A new enterprise resource planning system implemented in EMEA also affected first-quarter sales, it said.

Group revenue growth at constant exchange rates, however, came in at 2.8%. This was led by 3.4% sales growth in the larger IM division (to £102m), 2.2% growth in Position Measurement turnover (to £52.1m) and 1.0% growth in Specialised Technologies revenues (to £16.7m).

Renishaw labelled it a "steady start to FY2026, in line with our expectations", supported by the £20m made in annualised payroll savings since the start of the fiscal year, with headcount having fallen by 350 (6.5%) since the end of June.

"Despite the continued global uncertainty, the structural drivers that underpin our markets are presenting growth opportunities across our businesses and at this stage we are expecting to achieve further steady revenue growth in the year ahead," the company said.

The stock was down 4.6% at 3,545p by 0859 BST.