Rotork plc (76ID) AI Stock Analysis

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.