Bodycote, the Macclesfield-based heat treatment and thermal processing giant, said its 2025 revenue slipped 4% to £727.1 million but profit before taxation increased to £74.5 million from £28.4 million “reflecting the reduced impact of exceptional charges of £20.9m (2024: £78.3m), as well as a fall in acquisition costs due to reduced acquisition activity in the year.”
Bodycote announced a further £80 million share buyback which is expected to be completed by the end of 2027.
Full year dividend was maintained at 23p per share.
Closing net debt excluding lease liabilities increased to £104.8 million from £68.3 million.
Bodycote said: “The £36.5m increase in net debt reflected free cash flow of £47.5m, more than offset by close to £100m in shareholder returns comprising ordinary dividend payments of £40.9m and share buyback programme spend of £57.6m.”
Bodycote CEO Jim Fairbairn said: “2025 was a year of significant progress in executing our strategy, improving the quality of the group’s portfolio and positioning us for growth.
“The Optimise programme is well underway and is delivering benefits in line with our expectations. We are continuing to invest in a number of organic growth projects in Specialist Technologies and in our faster-growing target end markets.
“I am pleased with the development of our M&A pipeline, and in early 2026 we completed the acquisition of Spectrum Thermal Processing, enhancing our A&D footprint in North America. All of these actions are improving the quality of our portfolio and creating a more resilient and faster growing Bodycote.
“Market conditions were mixed in 2025, with continued challenges in Automotive and Industrial Markets partly offset by accelerating growth in Aerospace & Defence and Industrial Gas Turbines. Core organic revenue was broadly stable for the year but grew in the second half. Margins were impacted by mix headwinds and the low volume environment, partly offset by growing Optimise benefits.
“In 2026 we expect to deliver Core organic revenue growth, supported by continued strong demand in Aerospace & Defence and Industrial Gas Turbines. Reflecting the subdued economic backdrop, conditions in Automotive and Industrial Markets are expected to remain challenging in the near term, though we are well positioned to capitalise when demand recovers.
“We expect operating margins to improve in 2026, reflecting volume growth and further Optimise benefits. We are mindful of the current elevated geopolitical uncertainty and continue to monitor the situation closely. Our focus remains on delivering our strategy at pace and we are confident in the delivery of our medium term financial targets.”