Senior plc

For FY2025, Senior reported revenue of GBP 738 million, up 6% at constant currency, adjusted operating profit of GBP 63.6 million, up 22% at constant FX, adjusted operating profit margin of 8.6% (+110 bps), adjusted profit before tax of GBP 51.2 million (+24% at constant currency), and adjusted EPS of 9.65p (+9%). Free cash flow was GBP 36 million, up 37%, cash conversion was 90%, ROCE was 13.1% (+140 bps), and net debt including IFRS 16 leases fell to GBP 117 million. The company proposed a total dividend of 3p per share, up 25% year on year. For 2026, management said trading in the first two months has started well and the Board’s expectations are unchanged; they also said working capital is currently expected to be 18% of sales in 2026 and CapEx is expected to be 1.3x depreciation in 2026.

David Squires framed 2025 as a pivotal year, highlighted the completed sale of Aerostructures, and said the company is now focused on becoming a market-leading fluid conveyance and thermal management business. He emphasized that the group has a compelling investment proposition based on differentiated products, strong customer relationships, operational excellence, and a global footprint. His tone was confident and constructive, with repeated comments that the business is on track for its medium-term targets and that 2026 has started well.

Alpna Amar focused on the numbers: revenue was GBP 738 million, adjusted operating profit was GBP 63.6 million, margin was 8.6%, adjusted EPS was 9.65p, and cash conversion was 90%. She said free cash flow was GBP 36 million and net debt fell to GBP 117 million, helped by free cash flow, proceeds from the Aerostructures disposal, and disciplined capital allocation; leverage ended at 0.9x. She also noted net finance costs rose by GBP 1.3 million due to higher rates and higher average net debt, tax on adjusted profit before tax was GBP 11.3 million, and the company paid GBP 12.3 million of dividends while postponing the GBP 40 million share buyback.

Analysts pressed on the Flexonics headcount reductions and how much of the cost savings are temporary versus permanent; management said the GBP 5 million of cost out in 2025 should translate into about GBP 4 million of savings in 2026, with a mix of structural and temporary actions. Questions also focused on aerospace pricing, commercial settlements, and mix; management said one big pricing negotiation remains, that pricing progress is on track, and that the FY2025 settlement benefit was a few million, including a GBP 3 million insurance settlement in the first half. Analysts asked about the China JV and semiconductor lead times; management said the China JV performed especially well due to strong execution and that the semiconductor business has forecast orders with a factory cycle time nearer 6 weeks.