Slide 1: Bodycote FY25 Results
BODYCOTE. FY25 RESULTS 11 March 2026
Slide 2: Disclaimer
Disclaimer Bodycote plc (the ‘Group’) is providing the following cautionary statement: this presentation has been prepared solely to provide additional information to shareholders to assess the Group’s strategies and the potential for those strategies to succeed. The presentation should not be relie
Slide 3: Agenda
AGENDA 01 INTRODUCTION 02 FY25 RESULTS 03 STRATEGY UPDATE 04 Q & A Bodycote plc Full Year 2025 Results 3
Slide 4: Introduction. Jim Fairbairn.
INTRODUCTION. JIM FAIRBAIRN. Bodycote plc Full Year 2025 Results 4
Slide 5: Good strategic progress in mixed markets
01 INTRODUCTION Good strategic progress in mixed markets Key highlights: 01 Return to organic revenue growth in H2 despite mixed end market conditions 02 Executing at pace on Optimise, Perform & Grow strategy, with benefits building 03 Delivering improved portfolio quality via Non-Core closures & di
Slide 6: Improved momentum in H2, led by Aerospace
01 INTRODUCTION Improved momentum in H2, led by Aerospace Core revenue flat (-0.3%), up 3.2% year-on-year in H2: ▪ Aerospace & Defence: growth accelerated through the year (H2: +13.9%); now increased to 34% of revenues (FY24: 31%) ▪ Automotive & Industrial: reduced H2 revenue decline; environment re
Slide 7: Improving the quality of our portfolio
01 INTRODUCTION Improving the quality of our portfolio Further progress in 2025, including disposal of 10 Non-Core Auto and Industrial sites in France Enhanced focus on Specialist Technologies End Market Mix Improvement FY 2023 Post-Optimise1 Ambition FY 2023 Post-Optimise1 Ambition Aerospace 35-40%
Slide 8: FY Results. Ben Fidler.
FY RESULTS. BEN FIDLER. Bodycote plc Full Year 2025 Results 8
Slide 9: Key highlights
02 FY25 RESULTS Key highlights Improved trading during H2; continued balanced capital allocation including £100m shareholder returns Core revenue growth Core operating margin Earnings per share -0.3% 16.8% 44.4p Organic1 year-on-year -160bps vs FY 24 FY 24: 48.6p Cash conversion Leverage Shareholder
Slide 10: Results summary
02 FY25 RESULTS Results summary Organic Total £m, unless stated FY 2025 FY 2024 Change Change Good growth in Aerospace & Defence offset by Oil & CORE 1,2 Revenue 671.6 682.1 -0.3% -1.5% Gas headwinds; challenging Industrial & Auto markets Operating profit 113.0 125.5 -8.5% -10.0% Margins impacted by
Slide 11: Profit bridge
02 FY25 RESULTS Profit bridge ▪ Optimise benefit of £4m delivered, predominantly in Precision Heat Treatment & Central costs Adjusted operating profit (£m) Reduced variable incentive pay and Optimise savings 129.0 (7.4) 2.1 (5.4) (1.8) (2.2) 114.3 Reduced high-margin O&G revenue Challenging environm
Slide 12: Specialist Technologies
02 FY25 RESULTS Specialist Technologies 2025 impacted by weakness in Oil & Gas; trading momentum improved through H2 FY FY Organic Total ▪ Revenue -3.7% due to £12m drop in Oil & Gas revenues (end of £m 2025 2024 Change Change project work & low drilling activity); +2% excluding this impact Revenue
Slide 13: Precision Heat Treatment
02 FY25 RESULTS Precision Heat Treatment Modest revenue growth despite challenging end market conditions FY FY Organic Total ▪ Organic revenue +1.3% YoY, led by growth in A&D and IGT; £m 2025 2024 Change Change improved momentum in H2 (+4.5% YoY) Revenue 459.3 459.8 +1.3% -0.1% ▪ Aerospace growth ac
Slide 14: Cash flow statement
02 FY25 RESULTS Cash flow statement Robust cash conversion despite increased investment for growth £m FY 2025 FY 2024 Change Adjusted operating profit 114.3 129.0 -14.7 Depreciation & amortisation 70.8 75.3 -4.5 Other -0.4 -5.6 5.2 Adjusted EBITDA 184.7 198.7 -14.0 Capital expenditure (77.0) (60.5)
Slide 15: Bodycote engine for shareholder value creation
02 FY25 RESULTS Bodycote engine for shareholder value creation Disciplined approach to capital allocation to improve portfolio quality and drive higher returns Shareholder Returns Optimise Portfolio Optimise Strong dividend track record; additional Exit Non-Core assets, reducing future returns to ma
Slide 16: Technical guidance
02 FY25 RESULTS Technical guidance FY 2025 FY 2026 Reported Guidance Translational foreign exchange Revenue impact £(8.5)m c.£3m Estimated translational FX impact for Adjusted operating profit impact £(1.8)m -- FY 2026 based on current FX rates Other items Non-Core revenue £55.5m c.£15m Capex increa
Slide 17: Strategy Update. Jim Fairbairn.
STRATEGY UPDATE. JIM FAIRBAIRN. Bodycote plc Full Year 2025 Results 17
Slide 18: Executing our strategy at pace
03 STRATEGY UPDATE Executing our strategy at pace Site consolidations progressing well; confident in delivering at least £15m Optimise run-rate profit benefits by mid-2027 Perform pilot programme completed; full roll-out of operational excellence Perform tools underway to drive efficiency and improv
Slide 19: Optimise: Site consolidations well-underway
03 STRATEGY UPDATE Optimise Optimise: Site consolidations well-underway Significant run-rate benefits delivered to-date; actions largely complete by end of 2026 Strategic initiative 2024 2025 2026 2027+ Optimise planning OPTIMISE Overhead actions Plant consolidations ▪ Disposal of 10 French sites ▪
Slide 20: Perform: pilot programme case study
03 STRATEGY UPDATE Perform Perform: pilot programme case study Case Study: Cincinnati, Ohio Issues: Results: ▪ Poor factory layout and inefficient process flow ▪ Capacity required to serve fast growing Aero & IGT markets ~5 miles 17 Reduction in distance Process crossovers travelled by parts per wee
Slide 21: Perform: Efficiency & Customer Excellence
03 STRATEGY UPDATE Perform Perform: Efficiency & Customer Excellence Pilot Programme Complete Full roll-out underway ~60% complete Phase 1: Foundational 10% of Group sites enrolled ▪ Foundational, universally applicable tools deployed: Operational excellence tools and kaizen workshops – 5S – Daily m
Slide 22: Grow: multiple levers to drive faster growth
03 STRATEGY UPDATE Grow Grow: multiple levers to drive faster growth Improving our commercial capabilities alongside disciplined investment to drive growth Sales capability Global network Organic Investment Sustainability M&A capabilities ▪ End-market focused ▪ Focus on cross ▪ Expansion projects ▪
Slide 23: Grow: selected key organic projects in 2026
03 STRATEGY UPDATE Grow Grow: selected key organic projects in 2026 Disciplined investment to drive faster growth while improving portfolio mix 1 S3P South Korea 2 HIP Capacity 3 US A&D Upgrades 4 Mexico Greenfield ~$10m investment for first ~$20m investment in A&D ~$25m investment in 2 ~$10m invest
Slide 24: Accelerating via sustainability
03 STRATEGY UPDATE Accelerating via sustainability Sustainability actions support both our Perform and Grow initiatives Reducing energy cost Green offerings as a revenue lever Gothenburg site, Sweden Energy Intensity ▪ 200 energy efficiency ▪ Green premium services MWh/£m measures implemented now av
Slide 25: M&A strategy in action
03 STRATEGY UPDATE Grow M&A strategy in action Two deals delivering improved portfolio quality French Non-Core Disposal ▪ 10 sites in Northern France ▪ Automotive & Industrial focused ▪ Continuous & batch heat treatment processes Momentum ▪ Completed in November 2025: £19m proceeds building on M&A p
Slide 26: Outlook. Jim Fairbairn.
OUTLOOK. JIM FAIRBAIRN. Bodycote plc Full Year 2025 Results 26
Slide 27: 2026 Outlook
04 OUTLOOK 2026 Outlook Return to Core organic growth and margin improvement expected in 2026 ▪ Return to Core organic growth expected in 2026, led by continued strong growth in Aerospace & Defence and IGT; reflecting the subdued economic backdrop, conditions in Automotive and Industrial Markets exp
Slide 28: Q&A
Q&A Bodycote plc Full Year 2025 Results 28
Slide 29: Appendix
Appendix Bodycote plc Full Year 2025 Results 29
Slide 30: Non-core
APPENDIX Non-core Reduced Non-core revenue as the Optimise programme progresses FY FY Organic Total £m 2025 2024 Change Change ▪ Plan to exit all Non-Core sites as part of the Optimise programme Revenue 55.5 75.0 -28.0% -26.0% Adjusted operating profit 1.3 3.5 -62.8% ▪ Revenue reduction reflects sit
Slide 31: FY 2025 Statutory income statement
APPENDIX FY 2025 Statutory income statement £m FY 2025 FY 2024 Revenue 727.1 757.1 Adjusted operating profit 114.3 129.0 Amortisation of acquired intangible assets (9.7) (10.4) Acquisition costs (0.1) (2.4) Exceptional items (20.9) (78.3) Operating profit 83.6 37.9 Net finance charge (9.1) (9.5) Pro
Slide 32: FY 2025 Cash flow statement
APPENDIX FY 2025 Cash flow statement £m FY 2025 FY 2024 Adjusted EBITDA 184.7 198.7 Net capital expenditure (77.0) (60.5) Principal element of lease payments (13.8) (13.5) Provisions movement 0.4 (7.3) Net working capital movement (5.7) (1.9) Adjusted operating cash flow 88.6 115.5 Restructuring (14
Slide 33: Foreign Exchange
APPENDIX Foreign Exchange B/S currency (at closing rates) FY 2025 FY 2024 EUR 1.15 1.21 USD 1.35 1.25 SEK 12.40 13.84 TRY 57.79 44.29 Annual Annual P&L currency % of FY 2025 revenue profit (at average rates) FY 2025 FY 2024 revenue sensitivity1 sensitivity1 EUR 1.17 1.18 34% ~£2.3m ~£0.4m USD 1.32 1
Slide 34: Definitions
APPENDIX Definitions Term Definition Organic measures At constant currency, and excluding corporate acquisition and disposal activities from the current and comparative periods Adjusted operating profit Operating profit before acquisition costs, exceptional items and amortisation of acquired intangi