Renishaw, the UK-based precision engineering firm, has revised its full-year profit forecast upwards for the second time, driven by strong demand across multiple sectors. The FTSE 250 company now expects adjusted pre-tax profits of £167 million for the year ending June 30, marking a 31 percent increase over the previous year’s £127 million.
The company reported record revenues in the fourth quarter, reaching approximately £243 million—27 percent higher than the same period last year and 18 percent above the third quarter. This growth was largely attributed to heightened demand for products used in semiconductor and electronics manufacturing, as well as aerospace and defence applications.
Renishaw’s shares responded positively to the update, closing up 257 pence, or 5.2 percent, at £52.05. The stock has appreciated by 46 percent year to date, bringing the company’s market value close to £3.8 billion.
Founded in 1973 and headquartered in Gloucestershire, Renishaw specialises in measurement systems, software, sensors, and metal 3D printing. The company operates globally, with significant sales in China and the United States, and maintains major manufacturing facilities in the UK, India, and Ireland. Its primary research and development activities are concentrated in Britain.
In a trading update issued after markets closed, Renishaw highlighted that growth accelerated throughout the year, culminating in record quarterly revenue. The company emphasised ongoing robust demand from customers in semiconductor and electronics manufacturing equipment sectors, as well as aerospace and defence.
Revenue for the full year is anticipated to reach £815 million, a 14 percent rise from £715 million the previous year and exceeding market forecasts of £783 million. All three business segments recorded growth, with specialised technologies and position measurement showing particularly strong performances.
Earlier in the year, in April, Renishaw had already lifted its profit guidance to a range of £145 million to £165 million, up from an earlier range of £132 million to £157 million. The company noted logistical challenges linked to the conflict in Iran and inflationary pressure from tariffs imposed during the Trump administration, particularly affecting supply chains for semiconductors and critical materials. Nonetheless, it indicated that these issues had been managed effectively and were not expected to have a significant impact on operations for the rest of the financial year.
Analysts have responded positively to the company’s performance and outlook. Peel Hunt highlighted the strong momentum in the latter half of the year and raised their forecasts, describing the recent update as placing Renishaw “a one-year jump ahead of consensus.” They noted that the company’s strategic execution and growth targets could be conservative relative to potential market opportunities.
Similarly, Jefferies noted that recent discussions with investors suggested the profit upgrade was largely anticipated, reflecting the company’s strong exposure to key markets such as semiconductors, accounting for 22 percent of group revenue, and aerospace and defence, which represents 15 percent. The brokerage maintained that Renishaw’s continued profit upgrades differentiate it from other sector players amid an elevated valuation.
Renishaw is scheduled to release its full-year financial results on September 23.