Trading in line with expectations - FY26 outlook maintained

Bodycote plc

Trading in line with expectations - FY26 outlook maintained

Bodycote, the world's leading provider of specialist thermal processing services, issues a trading update covering the four-month period from 1 January to 30 April 2026 ("the period").

Highlights

• Core revenue growth of 9.0% at constant currency (-5% in prior year), led by Specialist Technologies, with strong growth in Aerospace & Defence and Industrial Gas Turbines
• Group revenue growth of +1.9% at constant currency (-6% in prior year) reflecting good growth in the Core business offset by plant exits under the Optimise programme
• Optimise programme on-track. Spectrum acquisition performing well and integration largely completed, further strengthening our Aerospace & Defence capabilities
• FY outlook maintained. Continue to expect to deliver Core organic revenue growth (moderating in H2 as comparators become more challenging), improved operating margins and strategic progress; political and economic uncertainty remains elevated

Trading Summary

Bodycote delivered Group revenue growth of 1.9% in the first four months. Core revenues rose by 9.0% in the period, which was against a soft prior year comparator (-5%) and reflected continued strong progress in Aerospace & Defence and accelerating growth in Industrial Gas Turbines (IGT). Industrial Markets revenue was flat year-on-year in the period, with a good performance in Europe offset by weaker volumes in the US. Automotive revenue declined in the period, reflecting the reduction in global light vehicle production. Excluding the contribution from the Spectrum acquisition, which was completed in January 2026, Core revenue grew by 8.4% organically.

By Division, organic revenue growth was led by Specialist Technologies at +16.5% with Precision Heat Treatment up 4.8%. The faster growth in Specialist Technologies reflects its more favourable end market mix as well as a softer prior year comparator (-11%) which reflected specific headwinds in the Oil & Gas and Medical markets in 2025 which have not repeated.

We continue to execute well on the Group's Optimise, Perform and Grow strategy. In Optimise, we expect to exit around 90% of the 31 Non-Core plants by the end of the year. At the end of April, 21 sites have been fully exited with a further 3 having ceased operations. Both execution costs and the level of revenue transfers to our Core business are on plan. In Perform, the roll-out of the operational excellence programme is underway, with good progress at a number of key `lighthouse' plants. In Grow, the changes to our sales and marketing capability are now in place and we are progressing well with a number of major investment projects focused predominantly on Aerospace & Defence, IGT and Specialist Technologies. Following the acquisition of Spectrum, we are continuing to evaluate and progress additional bolt-on opportunities in our M&A pipeline.

Share buyback programme

At our Full Year Results on 11 March 2026, a new £80m share buyback programme was announced which is expected to complete no later than the end of 2027. Between 11 March 2026 and 30 April 2026, 1.0m shares were purchased for a total consideration of £6.6m (volume-weighted average price of 660p).

Summary and outlook

Our full year outlook is maintained. Trading year-to-date and continued strategic progress underpin our expectation to deliver Core organic revenue growth and improved operating margins for the full year. We continue to expect the pace of Core revenue growth to moderate through the year, principally reflecting the shape of prior year comparators, particularly in Aerospace & Defence. We are mindful of ongoing geopolitical uncertainty and will continue to closely manage input costs and to focus on preserving agility in our cost base.

Appendix

Bodycote Directors' Confirmation

As part of this announcement, the following statement regarding the outlook for the full financial year to 31 December 2026 was published:

" Our full year outlook is unchanged. Trading year-to-date and continued strategic progress underpin our expectation to deliver Core organic revenue growth and improved operating margins for the full year. " (the " Outlook Statement ")

The Outlook Statement was originally published as part of the 2025 Full Year Results, before the announcement of a possible offer for Bodycote by Apollo Management X, L.P. (together with Apollo Global Management, Inc. and its subsidiaries) on Friday 22 May 2026. The requirements of Rule 28.1(c) of the City Code on Takeovers and Mergers apply in relation to the Outlook Statement.

Basis of preparation

The Outlook Statement has been compiled on the basis of the assumptions set out below and the basis of the accounting policies used in the Outlook Statement is consistent with the existing accounting policies of Bodycote plc.

Directors' confirmations

The Bodycote Directors have considered the Outlook Statement and confirm that, as at the date of this announcement, the Outlook Statement remains valid, has been properly compiled on the basis of the assumptions set out below and the basis of accounting used is consistent with Bodycote's existing accounting policies.

Assumptions

The Outlook Statement was prepared on the basis of the following assumptions, any of which could turn out to be incorrect and therefore affect the validity of the Outlook Statement.

Factors within the influence and control of the Bodycote Directors include:

• There is no material change to the present management of Bodycote;
• There is no material change in the operational structure and strategy of Bodycote;
• There is no significant change to Bodycote's existing or prospective material customer contracts or agreements;
• There is no material change in the scale, scope and delivery of the Optimise programme benefits; and
• Bodycote's accounting policies will be consistently applied over the forecast period.

Factors outside the influence or control of the Bodycote Directors include:

• There will be no further material deterioration in business conditions as a result of geopolitical events including the current conflict in the Middle East;
• There will be no material changes in market conditions impacting either customer demand or competitive environment;
• There will be no material change to the foreign exchange and input cost inflation in the markets and regions in which Bodycote operates;
• There will be no material adverse events or disruption that could have a significant impact on Bodycote's financial performance, including litigation, cyber events or natural catastrophes that affect key products, supply chain or markets;
• There will be no material impact from tariffs or uncertainty related to potential tariffs ;
• There will be no material adverse outcome from any ongoing or future disputes with any customer, competitor, regulator or tax authority; and
• There will be no material change in employee attrition rates and no material change in Bodycote's labour costs, including medical and pension and other post-retirement benefits driven by external parties or regulations.

Other important factors and information are contained in Bodycote's most recent annual report and accounts for the 12 months ended 31 December 2025 (including risks summaries in the section entitled "Principal risks and uncertainties") and Bodycote's other periodic filings and statements are available at www.bodycote.com.

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