Renishaw jumps as profits expected to beat forecasts thanks to semiconductor and electronics demand

Renishaw PLC (LSE:RSW) shares were hoisted 8.1% higher to 5,347p after the precision engineer signalled that profits for the past year would be above analyst forecasts, following a record final quarter.

The FTSE 250-listed maker of measuring and manufacturing systems said it generated revenue of roughly £243 million in the fourth quarter to 30 June, which was up 27% compared to a year ago and 18% above the third quarter growth.

This continued a trend of growth accelerating through the year, with demand said to be strong from customers in the semiconductor and electronics manufacturing equipment sector, as well as the aerospace and defence industry.

Full-year revenue is seen coming in at around £815 million, up 14% on last year, while adjusted profit before tax is expected to rise 31% to £167 million, with adjusted operating profit at £152 million.

"All three segments delivered growth, with particularly strong progress for Specialised Technologies and Position Measurement," the brief and unscheduled trading revealed, with minimal divisional breakdown before full-year results in September.

This is above the guidance given at its last update in April, when Renishaw guided to revenues between £775 million and £805 million, with adjusted PBT in a range of £145 million to £165 million.

House broker Peel Hunt said the final outturn was ahead of its estimates of £153 million PBT and £790 million turnover.

Analysts said they have now increased their forecasts for the year to June 2027 to £186 million of PBT and £207 million for the following year.