Renishaw plc (LON: RSW), a global leader in manufacturing technologies, has released its Q1 FY2026 trading update, revealing a steady start to the fiscal year despite facing mixed market conditions.
While revenue growth at constant currency reached 2.8%, actual exchange rates resulted in a 1.8% decrease.
The company also highlighted a positive market reception to its new Industrial Metrology products and the successful implementation of its £20 million operating cost reduction program.
Revenue at actual exchange rates totaled £170.8 million, down from £173.9 million in the same period last year. However, when adjusted for currency fluctuations, revenue showed a 2.8% increase. This growth includes a 1.2% benefit from surcharges implemented to offset tariff duties in the Americas.
Industrial Metrology (IM) revenue saw a 3.4% increase at constant exchange rates. Demand remains strong for 5-axis coordinate measuring machines (CMMs) and shop-floor gauging systems, reflected in both revenue growth and a growing order book.
Conversely, sales of metrology sensors to machine tool and CMM builders experienced weakness, particularly in the EMEA region.
Position Measurement (PM) revenue grew by 2.2% at constant exchange rates, driven by solid sales growth in open optical encoders and an expanding order book.
The company is also experiencing growth in its emerging enclosed encoders product line, primarily sold to machine tool builders. Laser encoder sales, however, were lower compared to a particularly strong prior-year period.
Specialised Technologies (ST) revenue edged up by 1.0% at constant exchange rates. Metal additive manufacturing (AM) system sales were higher than in recent quarters but slightly below the strong performance of Q1 in the previous year. Spectroscopy revenues were lower, though the order book has strengthened.
Regionally, performance varied significantly. The Americas delivered 11.2% year-on-year revenue growth at constant currency, boosted by tariff surcharges and improved underlying demand for CMM systems, AM systems, and PM products.
APAC achieved 14.7% revenue growth at constant currency, driven by increased demand for PM products in semiconductor manufacturing and IM products in the consumer electronics sector.
In contrast, EMEA experienced a 20.5% decline in constant currency sales, attributed to weak demand for IM sensors from machine tool builders and lower sales of laser encoders for wafer inspection applications.
The company has made strategic progress with the launch of new products, including the Equator-X dual method shopfloor gauge and MODUS IM Equator metrology software. These launches at the EMO exhibition in Germany received positive feedback.
The £20 million operating cost reduction program announced in June has been successfully implemented, resulting in a 6.5% reduction in Group headcount since the end of FY2025.
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