Renishaw (LON: RSW), the FTSE 250-listed precision engineering group, saw its shares climb 7 percent to 4,462 pence in early Monday trading — a level not seen since early 2022 — after the company issued an unscheduled statement upgrading its full-year financial guidance for the second time since February, citing particularly strong demand in semiconductor and electronics manufacturing equipment alongside continued momentum in aerospace and defence.
The Wotton-under-Edge-based company now expects revenue for the year ending June 2026 to fall in the range of £775 million to £805 million, up from the previous guidance of £740 million to £780 million that had itself only been issued at February’s interim results. Adjusted profit before tax guidance has also been lifted, now expected between £145 million and £165 million compared to the earlier forecast of £132 million to £157 million.
Renishaw pointed to a substantial expansion of its order book since the half-year update as the primary driver of the upward revision, with the semiconductor and consumer electronics manufacturing equipment sectors delivering the sharpest growth.
That sector backdrop is supported by broader industry data showing a recovery in semiconductor capital equipment investment, with fab expansion programmes in Asia, Europe and the United States all requiring the kind of precision measurement and calibration tools that sit at the core of Renishaw’s product range.
Broker Peel Hunt attributed the strength primarily to Renishaw’s Position Measurement division, which supplies encoders and other precision sensing components to semiconductor equipment manufacturers and has historically been the most cyclically sensitive part of the Business. Jefferies noted that the midpoint of the new revenue guidance implies full-year growth above 10 percent, with implied second-half adjusted profit before tax margins of 21.4 percent — in line with the company’s own medium-term targets and an indication that operating leverage is building.
Renishaw acknowledged ongoing challenges from economic and geopolitical uncertainty, including persistent supply chain pressures, but said it is actively managing these issues and remains confident in its ability to deliver on the upgraded guidance. A more detailed revenue trading update covering performance to March 31 is scheduled for May 6.
The two-month gap between guidance upgrades is a notable signal of the pace at which order intake has been accelerating, and Monday’s statement attracted fresh institutional attention to a stock that had been trading well below its previous highs despite strong underlying operational progress.