Oxford Instruments expects first-half margin gains as order intake jumps

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Oxford Instruments margin gains

Highlights

Oxford Instruments reports revenue up about 8% and expects adjusted operating margin to improve by over 100 basis points for H1 2026.
Advanced Technologies division posts first-half order growth exceeding 125% year-on-year, with FY27 revenue fully covered and H1 revenue up 26%.
Net cash stands at £75 million at end-H1 2026 versus £45.1 million last year, and £83 million of the £100 million buyback is completed.

First-half trading and division performance

As reported by the London Stock Exchange's Regulatory News Service, Oxford Instruments is issuing an unaudited trading update for the six months ended 30 September 2026, with reported revenue up about 8%, or 9% on an OCC basis, and adjusted operating margin expected to improve by more than 100 basis points from the prior-year period.

The company says the strength of recent orders and the resulting order book cover for the second half underpin its outlook for full-year performance. In Imaging and Analysis, first-half order intake rises by more than 11% from a year earlier, supported by semiconductor and materials science demand, while the division's total order book grows by about 5% against the first half of FY26.

Revenue in Imaging and Analysis grows by around 2% to 3%, as some smaller product lines replenish order books during the first half after a high level of deliveries in the fourth quarter of FY26. Oxford Instruments says the division remains on track to deliver full-year revenue growth in line with guidance, while adjusted operating margin improves after a difficult first half in FY26.

In Advanced Technologies, order growth exceeds 125% from the prior year, with about three quarters of first-half order intake linked to datacom applications after a number of customer wins in commercial volume manufacturing. The current order book now extends well into FY28, with expected revenue for FY27 fully covered, while first-half revenue rises by about 26% as the business expands facility and supply chain capacity to meet demand.

Cash position, buyback and investor timetable

Oxford Instruments says cash conversion improves significantly from earlier periods because of better working capital movement, fewer adjusting items and the end of pension contributions. That combination has a very positive effect on free cash flow compared with the prior year, and net cash reaches £75 million at the end of the period, up from £45.1 million in the first half of FY26.

At 30 September 2026, the company has completed £83 million of its £100 million share buyback programme and expects the programme to finish early in the new year. Chief executive Richard Tyson says the group is building momentum across both businesses, with especially strong progress in Advanced Technologies, where investment is focused on scaling capacity, the supply chain and the service model for a fast-growing market.

Management is due to present interim FY27 results to analysts and investors at Deutsche Numis in London on 10 November 2026.

Our earlier article on Coraza Integrated Technology Bhd’s semiconductor capacity expansion outlined how the company is ramping up factories and upgrading processes to produce larger, more complex components as industry demand strengthens. We noted that these investments, made during the prior downturn, were starting to lift revenue and margins and support a growing order book with visibility into 2027.

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