**Summary of Oxford Instruments PLC Half-Year Results (2025/26)**
**Overview**
Oxford Instruments PLC, a leading provider of high-technology products and systems for industry and research, reported its half-year results for the six months ending 30 September 2025. The company faced challenging trading conditions in Q1 due to macroeconomic disruptions, particularly tariffs and global economic uncertainty, but saw positive momentum returning in Q2.
**Financial Highlights**
**Orders**Up 1.4% year-on-year to £205.2m, with Q1 down 3.0% and Q2 up 5.7%.
**Revenue**Down 7.9% to £185.5m, impacted by delayed shipments and repricing of order books.
**Operating Profit**Adjusted operating profit down 22.9% to £24.7m, with a margin of 13.3%.
**Profit Before Taxation**Down 22.5% to £25.4m.
**Basic Earnings Per Share**Down 29.2% to 33.0p.
**Net Cash**Increased to £45.1m from £39.3m in 2024.
**Dividend**Interim dividend increased by 5.9% to 5.4p per share.
**Divisional Performance**
**Imaging & Analysis (I&A)**Orders down 6% due to Q1 disruption, but momentum improved in Q2. Revenue down 8.5% to £138.9m. Adjusted operating profit down 31.5% to £23.7m. Actions taken to mitigate tariff impacts and improve margins, including restructuring in Belfast.
**Advanced Technologies (AT)**Strong order growth of 25.3% to £58.6m, driven by compound semiconductor business. Revenue down 6.2% to £46.6m due to delayed shipments. Adjusted operating profit up 42.9% to £1.0m. New cleanroom facility in Bristol fully operational, supporting growth.
**Strategic Actions**
**Cost Control**Restructuring in Belfast and other cost-saving measures expected to generate £4m in benefits in H2.
**Manufacturing Footprint**Expanded manufacturing in China for detectors and moved AFM production to Germany to address local demand and supply chain resilience.
**Operational Excellence**Continued focus on improving productivity and quality, particularly in Belfast.
**Service Growth**Service revenue increased to 20% of Group revenues, up from 18% in H1 FY25.
**Outlook**
**I&A**Expected stronger H2 performance with improved order momentum, cost control, and product launches.
**AT**Robust order book supports another year of strong growth and improved margins.
**Full-Year Guidance**Full-year performance expected to be consistent with the October trading update, with revenue and adjusted operating profit similar to FY24/25 on an organic constant currency basis.
**Share Buyback**Increased buyback programme to £100m, with £32m already completed as of 31 October.
**CEO Commentary**
Richard Tyson, CEO, highlighted progress in simplifying the Group, improving commercial execution, and realigning regional presence. Despite challenges, the company expects an improved performance in H2, supported by strategic actions and strong order momentum in both divisions.
**Conclusion**
Oxford Instruments is navigating a challenging macroeconomic environment with strategic actions to improve margins, expand manufacturing capabilities, and drive growth. The company remains confident in its medium-term targets and expects a stronger second half of the year.