RELX Plc

First-half underlying revenue increased 7%, underlying adjusted operating profit increased 9%, and adjusted EPS increased 11% at constant currency. Adjusted operating margin improved 70 basis points to 35.5%; net profit rose 7% at constant currency and adjusted EPS was 68.6p in sterling. Cash conversion was 98%, EBITDA was almost GBP 2 billion, capex was GBP 292 million, free cash flow was over GBP 1.1 billion, net debt was GBP 8.7 billion, and leverage was 2.3x. By division, Risk grew revenue 8% and operating profit 10%; STM grew revenue 6% and operating profit 8%; Legal grew revenue 10% and operating profit 13%; and Exhibitions grew revenue 6% and operating profit 2%. For the full year, management expects continued strong underlying revenue growth in Risk, STM and Legal with operating profit growth exceeding revenue growth, and in Exhibitions expects strong revenue growth with an improvement in adjusted operating margin over the prior full year, aside from uncertainty around remaining Middle East events.

Erik Engstrom struck an upbeat tone, saying the group made further operational and strategic progress and continued to see positive momentum. He emphasized the ongoing shift toward higher-growth analytics and decision tools, with AI enabling faster product development and more value for customers. Across Risk, STM, and Legal, he framed the quarter as evidence that the company is still early in its AI rollout and can keep improving growth trajectories over time.

Nick Luff focused on the financial execution: 7% underlying revenue growth, 9% underlying adjusted operating profit growth, and a 70 basis point margin expansion to 35.5%. He highlighted 98% cash conversion, nearly GBP 2 billion of EBITDA, GBP 292 million of capex, over GBP 1.1 billion of free cash flow, and leverage of 2.3x at June, within the company’s typical 2.0x to 2.5x range. He also said the interim dividend will rise 7% to 20.9p, and noted GBP 103 million of acquisitions, GBP 62 million of disposal proceeds, GBP 151 million of dividends, and GBP 1.75 billion of buybacks completed.

Analysts pressed on STM article submissions and publication trends, adoption of the new LEAP space product, Legal’s growth acceleration and AI competition, margin durability, capital allocation, and the impact of U.S. science funding policy. Management said STM submissions remain very strong and are likely to moderate over time to low double digits, while lower publication growth is intentional because the company is becoming more selective. On Legal, management said new sales are now overwhelmingly on AI-enabled platforms and that the first platform conversion is only the start of a longer monetization journey through add-ons and new functionality; on margins and buybacks, they said the strategy is unchanged, with cost growth kept below revenue growth and buybacks serving as the balancing figure after organic investment and M&A.