Rotork plc

Orders received were GBP 372 million, down 4% versus the prior period. Revenue was GBP 367 million, up 1.3% organically constant currency and flat reported, reflecting disposals and a modest FX headwind. Adjusted operating profit was GBP 82 million, up 4.1%, and adjusted operating margin was 22.4% reported, up 40 bps; excluding FX and M&A effects, margin expanded 60 bps. Adjusted EPS was 7.4p, up 4.2% reported, and cash conversion was 79%. The interim dividend was 3p per share, 1.7% higher than the prior period. Guidance: overall group outlook is unchanged and Rotork expects further progress on an OCC basis in 2026. Oil and gas full-year revenue is now expected to be slightly lower year on year, with a more gradual H2 recovery, while CPI is expected to be stronger for the full year and Water & Power expectations remain unchanged.

Kiet Huynh framed the half as evidence that Growth+ is improving the quality, resilience and returns of the business, with stronger exposure to target segments and service helping offset oil and gas disruption. He highlighted particularly strong momentum in CPI, especially critical HVAC and data centers, and said the company is now better balanced than in prior cycles. His tone was upbeat but measured, emphasizing execution, safety, and continued focus on business as usual until the ABB transaction closes.

Ben Peacock said the strategy continued to deliver margin expansion, high returns, and shareholder returns, with adjusted operating profit of GBP 82 million, adjusted margin of 22.4%, and adjusted EPS of 7.4p. He noted cash conversion of 79%, positive free cash flow of GBP 22 million, and net cash of GBP 25 million at period end, despite temporary working-capital pressure from oil and gas volatility. He also detailed capital returns of GBP 44 million of dividends and GBP 40 million of share buybacks, plus GBP 7.3 million of R&D spend and GBP 15 million of ERP-related adjustment costs.

Analysts focused on the depth and pace of the oil and gas recovery, the strength of CPI data center demand, and the underlying outlook for power. Management said Americas oil and gas improved in downstream, EMEA was hurt by the Middle East conflict, APAC saw some downstream weakness from feedstock shortages, and LNG remained strong; they pointed to improving April-to-June rolling orders as evidence that H2 should improve gradually. On CPI, Kiet Huynh said data center demand exceeded expectations, critical HVAC doubled in the half, and growth was not just from data centers but also broader target-segment execution. On Water & Power, he said expectations are unchanged and the market is strong, though the company could not give more detail because it is under offer.