Steady progress in Q3 with performance in line with expectations
Renishaw plc, the global provider of manufacturing technologies, analytical instruments and medical devices, publishes the following trading update for the nine months ended 31 March 2025. It contains unaudited information that covers the first nine months of the financial year.
Q3 trading activity
| 3 months to 31 March 2025 | 3 months to 31 December 2024 | 3 months to 30 September 2024 | |
| Manufacturing technologies | £171.4m | £155.1m | £167.5m |
| Analytical instruments & medical devices | £9.3m | £12.4m | £6.4m |
| Total revenue | £180.7m | £167.5m | £173.9m |
| Adjusted* profit before tax | 30.0 | 23.5 | 34.0 |
| Statutory profit before tax | 28.1 | 23.5 | 34.0 |
Revenue in the third quarter was £180.7m, a 5% year-on-year increase and 6% higher than the average for the first two quarters of FY2025, with solid order intake during the three-month period. We achieved good growth in sales of machine tool probes to consumer electronics customers, whilst revenues from co-ordinate measuring machines (CMMs) and gauging systems were steady as we work through a substantial order book. We also saw solid growth in demand for position encoders from semiconductor equipment builders, continuing the trend seen at the end of the first half and reported in our H1 results.
Adjusted profit before tax* in the third quarter was £30.0m, including the previously guided impact of a 4% increase in employee pay from January.
Statutory profit before tax amounted to £28.1m, including £1.9m of exceptional costs relating to our Neurological business.
9 months to 31 March 2025 trading activity
| 9 months to 31 March 2025 | 9 months to 31 March 2024 | Change | Change at constant currency* | |
| Manufacturing technologies | £494.0m | £473.6m | +4% | +4% |
| Analytical instruments & medical devices | £28.1m | £29.3m | -4% | -6% |
| Total revenue | £522.1m | £502.9m | +4% | +3% |
| Adjusted* profit before tax | £87.5m | £86.8m | +1% | – |
| Statutory profit before tax | £85.6m | £86.8m | -1% | – |
Revenue for the nine-month period was £522.1m (FY2024: £502.9m), representing a 4% year-on-year increase at reported exchange rates. Revenue at constant exchange rates* was 3% higher than the previous year, including growth of 6% in APAC, 1% growth in EMEA, and a 1% reduction in the Americas.
Adjusted profit before tax for the nine-month period was £87.5m (FY2024: £86.8m), amounting to 17% of revenue (FY2024: 17%).
The Group’s balance sheet remains strong with cash, cash equivalents and bank deposit balances of £259.8m at 31 March 2025 (30 June 2024: £217.8m).
Update on Neurological business
The Board has taken the decision to close the loss-making drug delivery aspect of our Neurological business, which will lead to an annual increase in Group operating profit of c. £3m thereafter. Exceptional closure costs of £1.9m have been recognised in the third quarter, with an additional c. £1m expected to be incurred over the next six months. Renishaw Neuro Solutions Ltd continues to pursue its neurosurgery activities (robot sales, servicing and associated products) whilst the Group seeks a new owner for the business.
Factors affecting the business in Q4
Renishaw is impacted by tariffs introduced by the Trump administration. The USA represents approximately 20% of our global revenues and our factories are based in the UK, Ireland and India.
While there is ongoing uncertainty around policy in the medium term, under the current regime our products imported into the USA are either impacted by aluminium and steel tariffs (based on the mass of their material content) or subject to the ‘reciprocal’ tariff regime. Where required, we are introducing a surcharge to pass on the impact of these additional costs. We continue to assess the potential global impacts of these tariffs on an ongoing basis.
As previously communicated, the UK employer NI changes will increase labour costs from April 2025, with the fourth quarter of FY2025 to be impacted by £1m and £4m added to our annual costs.
Outlook
We have continued to deliver steady growth in mixed market conditions, with improving demand from semiconductor equipment builders throughout the year and a recent rise in machine tool probing sales. To support our growth strategy, we continue to focus on productivity, managing our portfolio of businesses and making targeted investments in our people, our production facilities, and our new product pipeline. We have an exciting range of new products coming to market in the next few months that will help to drive growth in the years ahead.
We enter the final quarter of the year with good momentum, but we are mindful of the volatile economic backdrop and its potential to impact our customers’ investment decisions. We are therefore continuing to focus on pricing strategy and cost control. In our interim statement, released on 13 February 2025, we communicated that we expected full year revenue to be in the range of £695m to £735m and adjusted profit before tax to be in the range of £105m to £135m. We now expect revenue to be in the range of £700m to £720m and adjusted profit before tax to be in the range of £109m to £127m.
We are holding our annual Capital Markets Day on 17 June 2025 at our recently expanded Miskin manufacturing facility. Further details, including how to register, can be found at www.renishaw.com/en/capital-markets-day-tuesday-17th-june-2025–49674.
* In accordance with Renishaw’s Alternative Performance Measures (APMs) policy and ESMA Guidelines on Alternative Performance Measures (2015), this section defines non-IFRS measures that we believe give readers additional useful and comparable views of our underlying performance. APMs included in this statement are: Adjusted profit before tax and Revenue at constant exchange rates.