Bodycote (LON:BOY) Posts Earnings Results

Bodycote (LON:BOY) announced its quarterly earnings results on Wednesday. The company reported GBX 44.40 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Bodycote had a return on equity of 4.34% and a net margin of 3.91%.

Here are the key takeaways from Bodycote’s conference call:

• Executives highlighted active portfolio reshaping under the Optimise programme — including the sale/closure of multiple sites — and target increasing Specialist Technologies to 35–40% of the portfolio by 2028 with a planned full run‑rate saving of at least £15m by mid‑2026.
• FY25 delivered broadly stable core organic revenue (‑0.3%) with stronger H2 momentum, but core margin fell ~160bps to 16.8% and adjusted EPS declined to £0.444; cash conversion remained healthy at 78% and the full‑year dividend was held at £0.23.
• Energy and oil & gas were material headwinds — group oil & gas/project activity in Specialist Technologies fell ~40% and energy‑related revenues were down around 25%, removing high‑margin work and pressuring divisional profitability.
• Management reported strong end‑market momentum in Aerospace & Defense (significant H2 acceleration) and industrial gas turbines, which they expect to drive a return to core organic growth and margin expansion in 2026.
• Capital allocation balances growth and returns — an additional £80m buyback announced (to complete by end‑2027), leverage at ~0.6x provides M&A firepower, and bolt‑on deals (e.g., Spectrum, Lake City) plus a >50‑target pipeline support targeted expansion.

Bodycote Stock Performance

BOY stock traded up GBX 23 during mid-day trading on Wednesday, reaching GBX 731. 149,105 shares of the stock traded hands, compared to its average volume of 697,526. The firm has a market capitalization of £1.26 billion, a PE ratio of 45.69, a P/E/G ratio of 1.44 and a beta of 1.22. The business has a 50-day moving average of GBX 751.85 and a two-hundred day moving average of GBX 684.87. Bodycote has a 52 week low of GBX 449.40 and a 52 week high of GBX 800. The company has a quick ratio of 0.74, a current ratio of 0.74 and a debt-to-equity ratio of 29.79.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on BOY shares. JPMorgan Chase & Co. restated a “neutral” rating on shares of Bodycote in a research note on Tuesday, January 6th. Jefferies Financial Group upped their price objective on shares of Bodycote from GBX 915 to GBX 925 and gave the stock a “buy” rating in a report on Monday, January 26th. Peel Hunt reissued a “buy” rating and set a GBX 845 target price on shares of Bodycote in a research report on Tuesday, November 18th. Deutsche Bank Aktiengesellschaft reduced their price target on Bodycote from GBX 860 to GBX 835 and set a “buy” rating for the company in a research report on Tuesday, November 18th. Finally, Berenberg Bank reiterated a “buy” rating and set a GBX 800 price target on shares of Bodycote in a research note on Friday, November 28th. Five analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of GBX 808.33.

About Bodycote

The leading provider of heat treatment and specialist thermal processing services worldwide.

Heat treatment encompasses a variety of techniques and specialist engineering processes which improve the properties of metals and alloys and extend the life of components and is a vital part of any manufacturing process.

Bodycote is uniquely placed via our global network and the experience and knowledge of our people to offer high quality, reliable and cost-effective services to manufacturers whatever their size or market sector.