Rotork Q4 Earnings Call Highlights

Core Viewpoint - Rotork reported its 2025 full-year results, highlighting progress under its Growth+ strategy with a 6% organic constant currency (OCC) order growth and improved profitability despite challenges in end markets and project deferrals in oil and gas [2] Orders, Revenue and Margins - Orders received totaled £783 million, reflecting a 6% year-over-year increase on an OCC basis, with growth across all divisions [3] - Revenue reached £777 million, up 3.7% on an OCC basis and 3% on a reported basis, impacted by a £15.9 million foreign exchange translation headwind [3] - Adjusted operating profit was £191.5 million, a 10% increase on an OCC basis, with the adjusted operating margin rising to 24.6%, up 140 basis points on an OCC basis [3] - Price increases effectively offset salary inflation, contributing to margin expansion despite a £6.1 million currency headwind affecting reported operating profit [3] Earnings and Dividends - Adjusted earnings per share were £0.17, marking a 6.9% increase on a reported basis [4] - Return on capital employed improved to 38.4% [4] - A full-year dividend of £0.083 per share was proposed, up 7.1% from the previous year [4] Cash Flow, Balance Sheet and Capital Allocation - Operating cash conversion was 101%, a decrease from the prior year due to increased working capital from delivery phasing [5] - Free cash flow was £106.8 million, lower than the previous year due to working capital investment and higher business transformation costs [5] - Year-end net cash was £65 million, influenced by a £40 million acquisition and £60 million in share buybacks [6] - The company returned £67 million via dividends and £60 million via buybacks during 2025 [6] Business Disposals - Rotork announced the disposal of two small non-core businesses for a total of £24 million, which had sales of £15 million in 2025 [7]