Renishaw reported a 27% rise in pre-tax profit to £150m for the year to 30 June, as strong demand from the semiconductor and aerospace and defence sectors helped drive record revenue.

Revenue increased 14% to £816m, or 17% at constant currency, with growth accelerating through the year. Fourth-quarter revenue reached a record £244.2m, up 28% year on year, while the order book continued to grow.

The Gloucestershire-based precision engineering group said demand for semiconductors was being driven by the rapid expansion of AI processing and data centres. Its encoders are used throughout the semiconductor manufacturing process, benefiting from increasing requirements for precision and automation. Emerging product lines, including additive manufacturing systems and metrology systems and software, also continued to gain traction.

Adjusted profit before tax rose 32%, while the adjusted operating profit margin increased by three percentage points at actual exchange rates, supported by cost reductions and operational leverage. Return on invested capital rose 4.3 percentage points to 17.5%.

Shares in Renishaw rose about 3% after the FTSE 250 technology firm reported annual results, with the stock touching a record 52-week high during morning trading.

Renishaw said the new financial year had started strongly, with increased demand for semiconductor manufacturing equipment. However, it warned of growing competition in China from lower-priced rivals.

CEO Will Lee said: “We made excellent progress in FY2026, with growth in all three segments. We are well positioned in attractive markets that offer substantial through-cycle growth opportunities. Our innovation-led strategy to achieve outperformance is also delivering good financial results, with significant growth in our emerging product lines.

"FY2027 has started strongly as we continue to benefit from the current upturn in demand for semiconductor manufacturing equipment. We expect further strong progress on revenue, profit and operating margin in the year ahead."

Renishaw proposed a final dividend of 65.2p per share, taking the full-year dividend to 82p, up 5%, alongside a special interim dividend of 70p per share.

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