Slide 1: Bodycote HY26 Results
BODYCOTE HY26 RESULTS 28 July 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 HY26 RESULTS 03 STRATEGY UPDATE 04 Q & A Bodycote plc Interim Results 3
Slide 4: Introduction
INTRODUCTION JIM FAIRBAIRN Bodycote plc Interim Results 4
Slide 5: H1 in line with expectations; FY Outlook unchanged
01 INTRODUCTION H1 in line with expectations; FY Outlook unchanged Key highlights: 01 Core organic revenue growth of +9.6% in line with expectations (Group: +6.5%) 02 Growth reflects strong demand in A&D (+24.6%) and IGT; Medical returned to growth 03 Partly offset by continued structural challenges
Slide 6: Strong Core growth led by Aerospace & Defence
01 INTRODUCTION Strong Core growth led by Aerospace & Defence Core organic growth of 9.6% in H1: ▪ Aerospace & Defence up 24.6% organically reflecting strong demand across both OE and AM ▪ Industrial Markets remain fragile with stronger performance in Europe vs North America ▪ Growth partly offset b
Slide 7: HY Results
HY RESULTS BEN FIDLER Bodycote plc Interim Results 7
Slide 8: Key highlights
02 HY26 RESULTS Key highlights Strong topline growth and share buyback effect drove EPS growth of 18.3% Core organic growth1 Core operating margin Earnings per share +9.6% 16.2% 25.2p Group: +6.5% +30bps vs H1 25 H1 25: 21.3p Cash conversion Leverage Shareholder returns 68% 0.7x ~£45m Operating cash
Slide 9: Results summary
02 HY26 RESULTS Results summary Organic Total £m, unless stated H1 2026 H1 2025 Change Change CORE1 Revenue 372.0 336.6 9.6% 10.5% Core adjusted operating margin +30bps despite Adjusted operating profit 60.4 53.5 11.0% 12.9% variable pay headwind & growth ramp-up costs Adjusted operating margin 16.2
Slide 10: Profit growth led by Specialist Technologies
02 HY26 RESULTS Profit growth led by Specialist Technologies ▪ Operating profit increase of 11% in H1 driven by: – Strong topline growth in Specialist Technologies (+16.7%) and Precision Heat Treatment (+6.4%) – Incremental Optimise benefits of c.£2m flowing through the divisions and Central costs –
Slide 11: Creating a better utilised and more efficient Group
02 HY26 RESULTS Creating a better utilised and more efficient Group Optimise enabling reduction in costs alongside revenue growth GROWTH EFFICIENCY Revenue Labour cost 3% UP 1% DOWN More efficient, higher quality 27/31 Optimise sites exited to-date vs H1 2025 vs H1 2025 >25% of revenue retained Orga
Slide 12: Specialist Technologies
02 HY26 RESULTS Specialist Technologies H1 growth of 16.7%, led by Aerospace & Defence H1 H1 Organic Total ▪ A&D revenue up 37% and now ~50% of Specialist Tech revenue £m 2026 2025 Change Change ▪ Two material A&D LTAs renewed with additional volumes Revenue 121.2 104.5 16.7% 16.0% Adjusted operatin
Slide 13: Precision Heat Treatment
02 HY26 RESULTS Precision Heat Treatment Good growth across our target end markets H1 H1 Organic Total ▪ Strong Commercial Aerospace growth in the UK and US; Defence £m 2026 2025 Change Change up 6.0% led by demand in North America Revenue 250.8 232.1 6.4% 8.1% ▪ Modest Industrial Markets growth, be
Slide 14: Cash flow statement
02 HY26 RESULTS Cash flow statement Adjusted operating cash flow improved YoY led by profit growth; cash conversion stable £m H1 2026 H1 2025 Change Adjusted operating profit 61.0 55.1 +5.9 Depreciation & amortisation 34.4 35.1 -0.7 Other (1.0) - -1.0 Adjusted EBITDA 94.4 90.2 +4.2 Net capital expen
Slide 15: Capital allocation
02 HY26 RESULTS Capital allocation Consistent delivery against our capital allocation priorities ▪ Net debt (excluding leases) of £135.2m at period-end; leverage at 0.7x net debt/EBITDA ▪ Capex investment expected to increase in H2 as we continue to support our growth strategy ▪ Acquisition of Spect
Slide 16: Technical guidance
02 HY26 RESULTS Technical guidance Guidance FY 2025 H1 2026 FY 2026 Reported Reported Prior Updated Translational foreign exchange Revenue impact £(8.5)m £1.1m c.£3m £(1)-(2)m Estimated translational FX impact for Adjusted operating profit impact £(1.8)m £0.4m - ~£(0.5)m FY 2026 based on current FX
Slide 17: Strategy Update
STRATEGY UPDATE JIM FAIRBAIRN Bodycote plc Interim Results 17
Slide 18: Executing our strategy at pace
03 STRATEGY UPDATE Executing our strategy at pace Entering final phase of site consolidations; exploring potential to expand Optimise the programme ‘Lighthouse’ operational excellence sites now running; remain confident Perform in ~100bps margin improvement from Perform by 2028 Growing momentum on n
Slide 19: Optimise programme benefits building
03 STRATEGY UPDATE Optimise Optimise programme benefits building Programme is on track and delivering expected benefits; exploring potential to expand scope Total 2025 FY 2026 FY programme Cumulative 18 29 31 Sites exited ▪ Programme delivery on-track ▪ 27 site exits completed, with 29/31 complete b
Slide 20: Perform: selected 'Lighthouse' sites
03 STRATEGY UPDATE Perform Perform: selected ‘Lighthouse’ sites Lighthouses will become regional training hubs to accelerate the Perform roll-out across our >100 sites Lighthouse 1: US HIP Product Fabrication site Other Lighthouse sites ▪ Lighthouse 2: EU PHT site ▪ Launched: April 2026 ▪ Launched:
Slide 21: Improving the quality of our portfolio
03 STRATEGY UPDATE Improving the quality of our portfolio Continued transition towards higher quality, faster growing end markets FY 2023 Today Drivers of mix shift Excess capacity in developed ▪ Exited 27/31 Non-core sites Strong underlying growth markets: Auto & Industrial ▪ Acquired Lake City & S
Slide 22: Outlook
OUTLOOK JIM FAIRBAIRN Bodycote plc Interim Results 22
Slide 23: H1 in line with expectations; FY Outlook unchanged
04 OUTLOOK H1 in line with expectations; FY Outlook unchanged Outlook: ▪ FY outlook unchanged; mindful of the current geopolitical and macroeconomic environment ▪ Expect to deliver Core organic revenue growth led by A&D, IGT and Medical; partly offset by continued Automotive weakness ▪ Pace of growt
Slide 24: Q&A
Q&A Bodycote plc Interim Results 24
Slide 25: Appendix
APPENDIX Bodycote plc Interim Results 25
Slide 26: Non-core
APPENDIX Non-core Further reduction in Non-core revenue as the Optimise programme progresses HY HY Organic Total £m 2026 2025 Change Change ▪ Plan to exit all Non-Core sites as part of the Optimise programme Revenue 9.2 32.4 -53.2% -71.6% Adjusted operating profit 0.6 1.6 -62.5% Adjusted operating m
Slide 27: HY 2026 Statutory income statement
APPENDIX HY 2026 Statutory income statement £m H1 2026 H1 2025 Revenue 381.2 369.0 Adjusted operating profit 61.0 55.1 Amortisation of acquired intangible assets (4.8) (4.8) Acquisition costs (0.2) - Exceptional items (10.4) (9.1) Operating profit 45.6 41.2 Net finance charge (4.4) (4.6) Profit befo
Slide 28: HY 2026 Cash flow statement
APPENDIX HY 2026 Cash flow statement £m HY 2026 HY 2025 Adjusted EBITDA 94.4 90.2 Net capital expenditure (33.5) (38.0) Principal element of lease payments (6.9) (6.8) Provisions movement 0.2 (0.1) Net working capital movement (12.6) (7.6) Adjusted operating cash flow 41.6 37.7 Restructuring (9.5) (
Slide 29: Foreign Exchange
APPENDIX Foreign Exchange B/S currency (at closing rates) HY 2026 HY 2025 EUR 1.17 1.17 USD 1.33 1.37 SEK 12.86 13.06 TRY 61.85 54.53 Annual Annual P&L currency % of HY 2026 revenue profit (at average rates) HY 2026 HY 2025 revenue sensitivity1 sensitivity1 EUR 1.14 1.19 30% ~£2.2m ~£0.5m USD 1.32 1
Slide 30: 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