Bodycote PLC Launches £80 million Share‑Buyback Programme
Bodycote PLC, a London‑listed holding company specialising in metal technology, isostatic pressings and metallurgical coatings, announced a new share‑buyback programme with a total value of £80 million, expected to be completed by the end of 2027. The programme will be carried out in two tranches.
- First tranche – up to £40 million (excluding expenses) – will be executed by Barclays Bank PLC acting through its investment bank.
- Second tranche – up to £40 million (excluding expenses) – will commence after the first tranche is finished.
Barclays has entered into an arrangement with Bodycote allowing it to purchase up to 12,301,205 ordinary shares until the company’s next Annual General Meeting on 27 May 2026, and subsequently to purchase shares as authorised at that meeting. Purchases will be made by Barclays as a risk‑less principal, independent of the company, and will be conducted in accordance with the terms of the arrangement.
2025 Full‑Year Financial Performance
Bodycote published its full‑year results for 2025, reflecting progress in a mixed‑market environment.
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue | £727.1 million | £757.1 million | –4.0 % |
| Operating profit | £114.3 million | £129.0 million | –11.4 % |
| Operating margin | 15.7 % | 17.0 % | –1.3 bps |
| Operating cash flow | £88.6 million | £115.5 million | –23.3 % |
| Basic earnings per share | 44.4 p | 48.6 p | –8.6 % |
| Ordinary dividend per share | 23.0 p | 23.0 p | – |
The company’s core revenue, excluding non‑core sites involved in the Optimise programme, was £671.6 million, a marginal decline of 0.3 % compared with 2024. Adjusted operating profit for core activities fell 8.5 % to £113.0 million, with an adjusted margin of 16.8 %. Bodycote attributes the results to the Optimise, Perform & Grow strategy, which has involved the disposal of ten non‑core sites in France during 2025 and an acquisition in the Aerospace & Defence (A&D) sector in January 2026.
Strategic Highlights
- Optimise Programme – The company has implemented cost‑saving measures that partially offset the decline in high‑margin oil & gas revenue.
- Perform & Grow Strategy – Focus on higher‑margin activities, notably in A&D and Industrial Gas Turbines (IGT), which have shown accelerating growth.
- Portfolio Quality Improvement – Disposal of non‑core sites and the recent A&D acquisition aim to enhance portfolio quality and resilience.
The share‑buyback programme is positioned as a disciplined capital allocation measure that complements the company’s balanced financial position and ongoing investment in growth opportunities.
