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Investing.com -- Bodycote (LON:BOY) on Tuesday reported £246m in revenue for the four months ending April, down 6% year-over-year on an organic basis.
Continuing revenues declined 5%, while sequentially, continuing revenues rose 4% compared to the second half of 2024.
The company said the latest revenue figure included a 1% headwind due to declines in energy surcharges.
RBC had expected flat sequential revenue, making the 4% increase a stronger-than-anticipated result.
Specialist Technologies, one of Bodycote’s higher-margin segments, saw an 11% organic decline.
The company attributed the drop to challenging comparisons with the prior year and the timing of contracts and capacity, which are expected to be more weighted toward the second half of the year. Revenues in the Precision Heat Treatment segment fell 2%.
Bodycote noted sequential improvement across nearly all end markets. Aerospace and defense saw a marked acceleration in the exit rate over March and April.
The automotive and industrial segments remained under pressure, though both were described as outperforming their respective markets.
The energy segment experienced declines due to the timing of contracts, with replacement agreements expected to begin in the second half of the year.
The company said its restructuring program remains on track to deliver EBITA benefits of £4m to £5m in 2025, with the gains expected to be realized primarily in the second half.
The total scope of the program may expand beyond the initial guidance of £12m to £14m.
Bodycote added that tariffs are not expected to have a direct impact, though uncertainty remains regarding their potential effects on demand in end markets.
Full-year expectations remain unchanged and in line with market consensus. Revenue is projected at £718m, with EBITA forecast at £122m.
RBC’s estimates are consistent with this guidance, at £717m in revenue and £122m in EBITA.
The company reiterated that results are expected to be second-half weighted, reflecting the timing of restructuring benefits and contract wins in oil and gas and defense. The company also cited an expected foreign exchange headwind of £1.5m to EBITA.
Specialist Technologies, despite the early-year decline, is expected to grow over the full year.
Shares of the U.K.-based company were up 2.4% at 03:30 ET (08:30 GMT)