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Rotork plc (76ID) AI Stock Analysis

GB:76ID

Rotork plc

(LSE:76ID)

Select Model
Rating:76Outperform
Price Target:GBX 131.00â–²(12.93% Upside)
Action:reiterated
Date:08/04/26

The score is driven primarily by strong financial quality (robust margins, strong returns, and low leverage) and a constructive earnings update with unchanged guidance and continued margin/ROCE strength. The rating is tempered by inconsistent cash conversion, stretched technical conditions (very overbought RSI), and an elevated P/E despite the supportive high dividend yield.

Positive Factors
High and improving profitabilityStrong margins and continued expansion indicate pricing power, operational discipline and differentiated engineering capabilities. Sustained profitability provides resilience through industrial cycles and supports investment in product development, service capacity and future growth.
Negative Factors
Oil and gas exposure remains cyclicalOil and gas remains a material end market, so upstream and midstream investment cycles can affect orders, revenue and margins. Geopolitical disruption and supply constraints may prolong weakness and limit the benefits of growth elsewhere.

Rotork plc (76ID) vs. iShares MSCI United Kingdom ETF (EWC)

0%5%10%15%20%25%30%GB:76ID+4.95%EWC+23.59%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
GBP 948.81M
Dividend Yield
12.39%
Average Volume (3M)
―
Price to Earnings (P/E)
7.8
Beta (1Y)
-0.02
Revenue Growth
―
EPS Growth
―
Country
UK
Employees
3,493
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

Rotork plc Business Overview & Revenue Model

Company Description

Rotork PLC, a United Kingdom-based enterprise, specializes in the development and manufacture of actuators and various other industrial components for a broad range of sectors. The company's key operational divisions encompass the oil and gas industr...

How the Company Makes Money

Rotork makes money primarily by selling flow-control and actuation equipment and by providing aftermarket support for that installed base. (1) Product sales: A significant portion of revenue comes from supplying actuators (electric, pneumatic, and hy...

Rotork plc Earnings Call Summary

Earnings Call Date:Aug 03, 2026(Q2-2026)|% Change Since:0.00%|Next Earnings Date:Aug 06, 2018
Earnings Call SentimentPositive

The call presented a predominantly positive performance driven by strong CPI results, margin expansion, high ROCE and robust cash returns, while acknowledging material near-term weakness in Oil & Gas due to Middle East-related disruption, a modest decline in orders and one-off transformation costs. On balance the strategic progress (Growth+), service growth and cash returns outweigh the cyclical challenges.

Positive Updates

Revenue Growth and Organic Performance
Group revenue of GBP 367m, organic constant currency (OCC) growth of 1.3% (reported flat due to disposals and FX headwinds). Orders received GBP 372m (down 4% YoY).

Negative Updates

Oil & Gas Revenue and Profit Decline
Oil & Gas divisional sales decreased 8.4% YoY; adjusted operating profit GBP 37m, down 13.8%, largely driven by Middle East conflict disruption, softer upstream and midstream activity and supply chain issues.

Company Guidance

Guidance remained unchanged: management expects further progress on an organic constant currency (OCC) basis in 2026, with oil & gas seen recovering gradually in H2 (full‑year oil & gas revenues now expected to be slightly lower year‑on‑year), a stronger full‑year performance from CPI, and unchanged expectations for Water & Power — supported by strong order momentum into H2; over time the group still targets mid‑ to high‑single‑digit revenue growth and adjusted operating margins in the mid‑20s. Key H1 metrics underpinning that guidance included orders of £372m (‑4%), revenue £367m (+1.3% OCC; flat reported), adjusted operating profit £82m (+4.1%), adjusted operating margin 22.4% (headline +40bps; +60bps OCC), RoCE 37%, Service at 24% of group sales, cash conversion 79%, positive free cash flow £22m, net cash £25m, adjusted EPS 7.4p (+4.2%), interim dividend 3p (+1.7%), £40m share buybacks and £7.3m R&D spend. The board also reiterated the proposed ABB cash offer of 506p per share (503p cash + 3p dividend), ~19.5x EV/adjusted EBITDA and a 73% premium to the undisturbed 15 July share price, with the scheme document due within 28 days and completion expected in H1 2027 subject to approvals.

Rotork plc Financial Statement Overview

Summary

High-quality fundamentals: strong and improving profitability (gross margin ~45–49%, EBIT margin rising to ~24%) and consistently strong ROE (~15–20%) supported by very low leverage. Main constraint is cash-flow variability, with uneven cash conversion and volatile free-cash-flow growth (softer again in 2025).

Income Statement

86Very Positive

Balance Sheet

92Very Positive

Cash Flow

74Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue777.20M777.30M754.43M719.15M641.81M569.16M
Gross Profit385.50M382.70M371.93M339.10M291.73M262.77M
EBITDA204.90M206.20M163.21M169.94M148.67M133.48M
Net Income122.40M115.40M103.58M113.14M93.24M80.25M
Balance Sheet
Total Assets766.20M813.80M780.49M773.78M735.73M676.15M
Cash, Cash Equivalents and Short-Term Investments70.00M110.00M149.98M146.37M114.77M123.47M
Total Debt44.70M44.70M24.65M11.96M8.84M9.34M
Total Liabilities206.50M229.40M181.98M151.49M145.83M142.07M
Stockholders Equity558.10M581.60M595.78M620.59M588.48M534.08M
Cash Flow
Free Cash Flow109.70M116.20M128.83M113.09M46.55M65.27M
Operating Cash Flow117.40M125.60M148.77M124.89M59.45M85.42M
Investing Cash Flow8.80M-44.90M-12.95M-23.46M-6.84M-12.24M
Financing Cash Flow-131.80M-118.70M-129.47M-64.85M-62.39M-136.61M

Rotork plc Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

GB:76ID against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
GB:IMIGB:IMI76OutperformGBP 6.75B21.0132.41%1.23%7.67%45.97%
GB:76IDGB:76ID76OutperformGBP 4.02B7.7921.48%12.39%――
GB:SPXGB:SPX66NeutralGBP 5.51B27.8916.03%2.29%5.07%21.70%
GB:WEIRGB:WEIR65NeutralGBP 6.59B25.0613.45%1.65%5.84%-14.62%
GB:SMINGB:SMIN61NeutralGBP 7.39B4.2992.97%1.80%-33.55%4.29%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
GB:GDWNGB:GDWN54NeutralGBP 1.10B27.6434.20%6.70%――

* General Sector Average

Performance Comparison

-40%-20%0%20%GB:76IDGB:GDWNGB:IMIGB:SMINGB:SPXGB:WEIRDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
GB:76ID and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
GB:76IDRotork plc116.005.474.95%
GB:GDWNGoodwin plc14620.00-6933.44-32.17%
GB:IMIIMI plc2878.00555.7223.93%
GB:SMINSmiths Group plc2697.00213.868.61%
GB:SPXSpirax Group Plc7475.00606.838.84%
GB:WEIRWeir Group plc (The)2556.00-279.82-9.87%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 04, 2026