Bodycote (LON:BOY) Announces 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 net margin of 3.91% and a return on equity of 4.34%.

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

Shares of LON BOY opened at GBX 732.50 on Thursday. The firm’s 50-day moving average price is GBX 753.17 and its 200-day moving average price is GBX 685.42. The company has a quick ratio of 0.74, a current ratio of 0.74 and a debt-to-equity ratio of 29.79. The company has a market cap of £1.26 billion, a PE ratio of 45.78, a PEG ratio of 1.44 and a beta of 1.22. Bodycote has a 52-week low of GBX 449.40 and a 52-week high of GBX 800.

Analysts Set New Price Targets

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