Feb 11 (Reuters) - British engineering firm Renishaw reported an 11% jump in first-half profit on Wednesday, boosted by cost-reduction measures and strong demand from the defence and semiconductor
Britain's Renishaw projects annual profit, revenue growth; shares jump
Renishaw's Financial Outlook and Market Response
Feb 11 (Reuters) - UK's Renishaw on Wednesday forecast growth in annual profit and revenue, buoyed by sturdy momentum in the second half of fiscal 2026 and strong demand from the semiconductor and defense sectors, sending shares up more than 6%.
The British engineering firm projected full-year revenue between 740 million pounds and 780 million pounds ($1.01 billion-$1.07 billion), with adjusted profit before tax expected to range from 132 million pounds to 157 million pounds.
It reported revenue of 713 million pounds and adjusted profit before tax of 127.2 million pounds for the year ended June 30, 2025.
Projected Revenue and Profit
The semiconductor and defense sectors are experiencing robust growth. AI data centers and autonomous vehicles are driving unprecedented demand for chip-making equipment, while rising global geopolitical tensions have pushed global defense spending to its highest levels since the late Cold War.
Market Reaction to Earnings Forecast
The company's adjusted profit before tax came in at 64.1 million pounds for the six-month period ended December 31, compared with 57.5 million pounds a year earlier.
Sector Growth Drivers
"Whilst we are mindful of ongoing economic and geopolitical uncertainties, our positive momentum has continued in the early part of third quarter, and we are confident of achieving strong growth for the year as a whole," Chief Executive Will Lee said in a statement.
Shares in the Gloucestershire-headquartered firm rose as much 6.3% to 41.30 pounds in morning trade, their highest level since June 2024.
($1 = 0.7304 pounds)
(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Sherry Jacob-Phillips)
