Oxford Instruments Plc · LSE:OXIG
Oxford Instruments — FY2025 Earnings Presentation
31 slides from Oxford Instruments's earnings presentation, Jun 13, 2025
Slide 1: 2024/25 full-year results presentation
2024/25 full-year results presentation 13 June 2025 Richard Tyson, CEO Paul Fry, CFO
Slide 2: Strong performance on all fronts
Strong performance on all fronts Revenue Profit 2 Margin Orders £500.6m +6.5% 1 £82.2m +10.8% 17.8% +70bps £473.9m +3.2% (2024: £470.4m) (2024: £80.3m) (2024: 17.1%) (2024: £459.1m) • Record revenue, significant profit growth, and strong margin progression in both divisions • Good commercial tractio
Slide 3: Simpler, sharper, more focused; a higher margin business
Simpler, sharper, more focused; a higher margin business Simplified organisation structure and targeted divisional approach support strong growth and margin progression Excellent Imaging & Analysis margin up 60bps to 24.7% OCC Regional rebalancing and improved commercial focus drives strong double-d
Slide 4: Sale of Oxford Instruments NanoScience to Quantum Design Inc
Sale of Oxford Instruments NanoScience to Quantum Design Inc Turnaround and return to profitability enable Oxford to crystallise value £ 60m c. +190bps 53% £ 1.1m revenue AOP, versus Sale price* Pro-forma uplift to Group margin growth £5m loss in 2024 • Divestment of quantum-focused NanoScience in l
Slide 5: Financial Review
Financial Review Paul Fry Chief Financial Officer FY25 Preliminary Full Year Results /13 June 2025 5
Slide 6: FY25: Broad-based revenue and profit growth across the Group
FY25: Broad-based revenue and profit growth across the Group £’m £’m FY25 FY25 FY24 FY24 % % Growth Growth % % OCC OCC11 • Organic CC growth mid target range of 5-8% • Improving OCC margins in both businesses, Revenue 500.6 470.4 +6.4% +6.5% with step up in Advanced Technologies as compound semicond
Slide 7: Revenue evolution
Revenue evolution Revenue (£’m) +6.5% +6.4% • FY25 revenue headwind from China order cancellations in FY24. Pivot now complete 9.7 500.6 20.9 (10.2) • Acquisitions of First Light Imaging (Jan 2024) and FemtoTools (Jun 2024) into I&A division 470.4 8.0 20.6 (18.7) • Organic CC growth +6.5%, in mid-ta
Slide 8: Drivers of revenue growth
Drivers of revenue growth • Core markets growing strongly, with the exception of China following pivot • Good conversion of FY24 orders from NanoScience large quantum programme orders into revenues in FY25 • Commercial R&D driving growth • Academic decline in FY25 driven by China pivot. Uncertainty
Slide 9: Adjusted operating profit evolution
Adjusted operating profit evolution • Improving margins on a constant currency basis across both divisions • Strong margins maintained in Imaging & Analysis – cost and price benefits offsetting weaker life science/imaging performance • Advanced Technologies moved into profit, with H2 supported by la
Slide 10: Imaging and Analysis
Imaging and Analysis OCC OCC £’m £’m FY25 FY25 FY24 FY24 growth % Growth • Organic CC order intake +3.0% Orders 318.6 306.6 +3.0% • Solid revenue growth despite Revenue 330.5 328.1 +0.2% headwinds from China pivot - organic growth ex-China +4.1% Adjusted operating profit 76.2 79.0 +2.8% • Good growt
Slide 11: Advanced Technologies
Advanced Technologies OCC £’m FY25 FY24 Growth % • Order CC growth excl. Orders 145.1 152.5 (3.3%) NanoScience +2.0% Revenue 170.1 142.3 +21.3% • Delivering on NanoScience quantum order intake from FY24. Adjusted operating profit 6.0 1.3 >100% • Plasma OCC revenue up 12.9% on Adjusted OCC operating
Slide 12: Adjustments to statutory results
Adjustments to statutory results £’m £’m FY25 FY25 FY24 FY24 % % Growth Growth %%OCC OCC 1 • Net income impacted by lower interest on cash balances through the year following Adjusted operating profit 82.2 80.3 +2.4% +10.8% Severn Beach and acquisition investments Net Finance Income 1.2 3.0 • Non-re
Slide 13: Cash flow
Cash flow Adjusted cash from operations £65.7m 12.7 11.2 • Normalised cash conversion 89%, 82.2 excluding Severn Beach (SB) capex (FY26 expected >85%) 12.1 • Working capital increase due largely to 5.5 decrease in NanoScience (NS) pre- 0.3 7.5 payments FY24 to FY25 (£9.9m). 7.9 • Capex of £12.1 incl
Slide 14: NanoScience divestment
NanoScience divestment Key terms/impact: PRO-FORMA Continuing Operations - excludes NanoScience (NS) • Sale of NanoScience business for consideration of £60m FY25 FY25 £’m Reported Pro Forma • £57m payable at closing1 • Expected to close calendar Q3 of FY26 Revenue 500.6 443.4 • FY26 transaction cos
Slide 15: Significant value creation potential from growth and margin improvement
Key drivers of organic growth and building blocks to margin expansion Adjusted operating margin • Margin uplift from quantum Mix 20%+ turnaround and sale and FX FY25 progress Growth leverage 17.8% • Stranded cost impact mitigated over medium term 17.1% Stranded FY25 Operational progress costs & proc
Slide 16: Capital allocation priorities
Capital allocation priorities E.g. • R&D at 8%-9% of revenue Organic investment • Severn Beach; Regional build out Driving growth and margin • FY23: 19.5p +7.7% • FY24: 20.8p +6.7% Dividends • FY25: 22.2p +6.7% Progressive, in line with underlying earnings Inorganic Share buybacks Compelling strateg
Slide 17: Financial guidance for FY26
Financial guidance for FY26 For continuing operations (excl. NanoScience): Revenue • Low to mid-single digit revenue growth OCC • Projected FX headwind of ~£9m • Macro and tariff uncertainties remain R&D • Continue in the target range 8%-9% of revenue Adjusted operating profit • Margin progression +
Slide 18: Delighted to be joining a high-quality company, with significant growth and value creation upside
Paul Fry, CFO from April 1st 2025 Delighted to be joining a high-quality company, with significant growth and value creation upside Market-leading UK-led, and Financial technologies globally present strength Structurally New CEO, new growing end strategic focus markets 18
Slide 19: One year on: Simpler, sharper, more focused
One year on: Simpler, sharper, more focused 19
Slide 20: One year on: strong progress towards medium-term targets
One year on: strong progress towards medium-term targets • Clarity of focus of simpler group structure driving growth, business performance and margin progression 5-8% 20%+ • Regional rebalancing and improved Organic growth margin CAGR commercial focus, including pivot to industrial markets in China
Slide 21: Streamlined and segment-focused marketing driving growth
Strong results underpinned by increased focus on our three core markets Double digit growth in semiconductor markets; continued steady growth in materials analysis; healthcare & life science remains weak Medium-term Three key markets:* Market dynamics OI dynamics and outlook market CAGR Materials An
Slide 22: Orders: Positive book to bill ratios and cover visibility for FY26
Orders: Positive book to bill ratios and cover visibility for FY26 Healthcare & life sciences Tariffs Well placed to mitigate Orderbook and cover Good outlook in I&A and AT Order demand stabilised against direct impacts • Order intake stabilised and flat Revenue cover (months): • 85% of current reve
Slide 23: Pivot completed: strong growth in other regions and new markets created in China
Pivot completed: strong growth in other regions and new markets created in China Agile global team delivers successful rebalancing of regional profile 2024/25 revenue growth China (15%) China • Pivot completed by successfully targeting structurally growing commercial markets Rest of +25% • Orders up
Slide 24: Simpler structure with specific targeted actions delivered early success
Simpler structure with specific targeted actions delivered early success Imaging & Analysis Advanced Technologies Good to great Fix, improve and grow Capabilities Compound semiconductor fabrication equipment Leading range of microscopy, scientific cameras, spectroscopy and associated analytical tool
Slide 25: Full integration within Imaging & Analysis driving Raman growth in WITec
Full integration within Imaging & Analysis driving Raman growth in WITec 18% 47% Revenue Order growth growth • WITec Raman business acquired 2021 delivers strong growth • Improved reach to customers • Targeting by segment wins key commercial orders in semiconductor • Benefiting from Oxford Instrumen
Slide 26: Group-wide focus on pairing leading technology with fast results and ease of use
Divisional roadmap targeting differentiation and growth through innovation Group-wide focus on pairing leading technology with fast results and ease of use Leveraging strength in academia to Critical sub-systems integrated into Proprietary Imaris and AZtec software address commercial R&D opportuniti
Slide 27: Good progress on operational transformation programme; further potential to grow margin
Good progress on operational transformation programme; further potential to grow margin Phase 1: Productivity gains and inventory reduction from Phase 2: Addressing systems cameras workstream quality and profitability 60% productivity First pass yield from Inventory reduction Product line review tar
Slide 28: Advanced Technologies: excellent compound semiconductor momentum
Advanced Technologies: excellent compound semiconductor momentum Continued growth and profitability enhanced by new facility and growth segment focus ISO 5 cleanroom commissioned with applications tools operational – first customer samples in progress 13% revenue and profit growth driven by volume a
Slide 29: Good progress on Group medium-term actions; more to come
Good progress on Group medium-term actions; more to come Medium-term target FY24 FY25 5-8% organic Revenue growth 5.8% 6.5% OCC growth CAGR Group margin 20%+ 17.1% 17.8% OCC ROCE >30% 29.1% 27.1% Cash conversion >85% 64% 89% 8-9% revenue 8.2% Investment in R&D 8.3% invested Acquired FemtoTools M&A S
Slide 30: Simpler, sharper, more focused, with higher margins
Strong growth, clear progress, and further opportunity ahead A good year: strong revenue, profit growth and margin expansion Significant progress with strategic initiatives; benefits already clear, with more to come Strength of balance sheet and sale of NanoScience facilitate improved returns for sh
Slide 31: Your questions
Your questions 5-8% 20%+ Organic Margin growth CAGR Enhance 8-9% growth, >30% Revenue ROCE Q&A invested in R&D margins & returns Selective >85% M&A Cash conversion 31