Oxford Instruments sees FY in line with market views after 'resilient' performance

(Sharecast News) - Oxford Instruments said on Tuesday that it expects to deliver a "resilient" full-year performance, in line with market expectations. FY26 consensus estimates are for revenue of £420.7m and adjusted operating profit of £71.3m.

In an update for the year to the end of March, the company said full-year order intake is expected to be around 8% higher on an organic constant currency (OCC) basis versus the previous year, with a book-to-bill ratio of approximately 1.07.

Following a "tariff-disrupted" start to the financial year, the company said it has seen continued positive quarter-on-quarter order intake momentum in its Imaging & Analysis division. After a return to growth in the second half, full-year order intake is expected to be in line with the prior year on a reported basis, and marginally up versus the previous year on an OCC basis.

In the Advanced Technologies segment, tailwinds in the compound semiconductor market and increasing traction with volume manufacturing customers, have driven year-on-year order growth of about 30%, it said. Order intake accelerated in the second half, mainly thanks to large US and European commercial customers.

Oxford Instruments said that following receipt of a significant multi-year order this month, the current AT order book "materially covers" planned revenue for FY27, with orders now extending into FY28.

"As anticipated, strong execution and improving market conditions in the second half delivered a group revenue performance significantly ahead of H1, with H2 revenue marginally below the prior year on a reported basis, moving to slightly positive growth on an OCC basis," it said.

Oxford Instruments said group operating profit margin continued to benefit from the cost restructuring actions undertaken at its Belfast imaging business, and from the expected margin improvement from H2 revenue growth.

Chief executive Richard Tyson said: "The group's strong execution in the second half, coupled with excellent order growth in Advanced Technologies, led to a resilient full-year performance against a challenging external backdrop; testament to the great work and agility of all of the team at Oxford Instruments.

"With good momentum and a strong order book we are well positioned for growth into the new financial year and beyond."

Oxford Instruments provides scientific technology tools, software and expertise to academic and commercial partners.

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