Renishaw has reported record annual revenue as stronger demand for semiconductor manufacturing equipment lifted its position measurement business and accelerated growth through the second half of its financial year.
Revenue for the year to 30 June 2026 rose 14% to £815.8 million, or 17% at constant exchange rates, from £713.0 million a year earlier. Adjusted operating profit increased 36% to £152.9 million, while adjusted profit before tax rose 32% to £168.0 million. Statutory profit before tax was £150.0 million, up 27%.
The strongest growth came from Renishaw’s Position Measurement and Specialised Technologies segments rather than its larger Industrial Metrology operation. Position Measurement revenue increased 26% to £260.9 million, with the company attributing much of the improvement to AI driven semiconductor manufacturing demand. Adjusted operating profit for the segment rose 53% to £71.5 million and its margin increased from 22.5% to 27.4%.
Specialised Technologies grew revenue 43% to £107.5 million, driven mainly by stronger demand for additive manufacturing systems, particularly from aerospace and defence customers. The segment moved from an adjusted operating loss of £9.9 million in the previous year to a £4.7 million profit.
Industrial Metrology remained the largest division, generating £447.4 million of revenue, up 4%. Renishaw said emerging metrology systems and software performed well, while sales of established metrology sensors were flat and adjusted operating margin slipped slightly to 17.1%.
Will Lee, chief executive officer of Renishaw, said: “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 supplies measurement and position feedback technology used in precision motion systems inside advanced manufacturing equipment. As lithography, inspection, deposition, handling and other semiconductor processes push towards tighter tolerances, encoder performance and control accuracy become increasingly important to machine capability and yield.
The results show how strongly that demand is affecting the mix of the business. Position Measurement accounted for roughly one third of group revenue in FY2026, but its 26% growth rate was more than six times that of Industrial Metrology. The segment also generated a higher adjusted operating margin than the group average, increasing the earnings effect of stronger semiconductor equipment sales.
Geographic performance points in the same direction. APAC remained Renishaw’s largest market at £381.9 million of revenue, up from £337.7 million, while Americas revenue increased to £219.0 million from £167.6 million. China accounted for £220.1 million and the US for £192.9 million, exposing the group to investment cycles in two of the world’s largest technology manufacturing markets.
Demand also accelerated through the year. Renishaw ended FY2026 with a larger order book and reported record fourth quarter revenue of £244.2 million, 28% above the comparable period. That progression gives a clearer indication of current trading than the annual average, particularly in semiconductor equipment where capital spending and inventory corrections can move quickly.
The company is not relying only on established encoder products. It said emerging encoder lines are opening additional markets, while additive manufacturing and newer metrology systems are contributing more materially. That broadens the sources of growth without removing the cyclical exposure associated with semiconductor capital expenditure or aerospace investment.
Most of the group’s research, development and manufacturing remains in the UK, with major manufacturing operations also in Ireland and India. Stronger orders from semiconductor equipment customers therefore translate into production activity, working capital requirements and capacity planning rather than appearing solely as overseas distribution revenue.
Cash and deposit balances ended the year at £291.0 million, compared with £273.6 million a year earlier, despite investment in capital expenditure and working capital to support record sales and a growing order book. Adjusted operating margin improved by three percentage points to 18.7%, helped by operational leverage and cost reductions, partly offset by currency headwinds.
Renishaw’s FY2027 guidance now depends heavily on whether the semiconductor equipment upturn persists. Equipment makers have to balance capacity expansion for AI and advanced computing against the possibility of another correction in capital spending, so order progression over the coming quarters will be a more useful indicator than one strong year in isolation.
The company enters that period with higher revenue, stronger margins and a larger order book. The next test is whether semiconductor demand can remain strong enough to sustain Position Measurement growth while additive manufacturing and metrology contribute a broader base of industrial demand.
