Genus plc (GBE) AI Stock Analysis

Company Guidance

For FY 2027, the Group expects underlying adjusted PBT constant currency to be moderately higher year on year, in line with consensus expectations, with moderate adjusted operating profit growth for both PIC from a normalized base and ABS; Group PBT is expected to be second half weighted, with FY 2027 phasing a very similar flip around to FY 2026, where more than 50% was in the first half. FY 2027 free cash flow is expected to also be strong but lower than FY 2026, principally due to the China joint venture formation and a modest increase in net capital expenditure; research costs are expected to grow in FY 2027 albeit remaining below 3% of group revenue, underlying PRP costs are expected to increase further, and the VAP program is targeted to complete during the first half of FY 27. The FY 2027 tax rate is expected to be broadly similar to 27.2%, leverage is expected to be around the bottom end of the targeted range of 1 to 2 times, Brazil is probably going to see lower growth in FY 2027, and North America could see a return to growth in the second half of FY 2027 if there is more normalization.