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Annual Report 2025
Advancing
Growth+
Contents
Strategic report
1 Highlights of 2025
2 What we do
4 Our market dynamics
5 Investment case
6 Chair’s statement
8 Chief Executive Officer’s statement
12 Our strategy
16 Our DNA
18 Business model
19 KPIs
21 Divisional review
24 Financial review
28 Sustainability review
58 Risk management
60 Principal risks and uncertainties
67 Viability statement
68 Task Force on Climate-related
FinancialDisclosures
76 Non-financial and sustainability
informationstatement
Corporate governance
79 Chair’s governance overview
82 Board of directors
84 Governance highlights
86 Corporate governance report,
including our Section 172(1) statement
106 Safety and Sustainability
Committeereport
110 Audit Committee report
115 Nomination Committee report
119 Directors’ Remuneration report
147 Directors’ report
151 Statement of
directors’responsibilities
Financial statements
153 Independent auditor’s report
161 Consolidated income statement
Consolidated statement of
comprehensiveincome
162 Consolidated balance sheet
163 Consolidated statement
of changes in equity
165 Consolidated statement
ofcashflows
166 Notes to the Group
financialstatements
197 Company balance sheet
Company statement of changes
inequity
198 Notes to the Company
financialstatements
Additional information
204 Ten year trading history
205 Share register information
206 Corporate directory
To find out more go to
www.rotork.com
Who we are
Rotork is a global leader in mission-
critical intelligent flow control
solutions, dedicated to improving
efficiency, reducing emissions and
assuring safety for customers
Purpose
Keeping the world flowing
for future generations
Vision
To be the leader in
intelligentflow control
Our cultural DNA
2025 marked another year of advancing the Growth+ strategy. Our purpose-led approach
continuedto generate strong financial outcomes, supported by the resilience of our business
modeland favourable structural tailwinds across our markets. We also accelerated capital
deployment, further reinforcing the foundations for sustained long-term growth and value creation.
Advancing
Growth+
Adjusted operating profit
£191.5m
24.6% margin
Statutory profit before tax
£157.9m
+12%
Adjusted earnings per share
17.0p
+7%
Dividend per share
8.3p
+7%
Return on capital employed
38.4%
+110bps
Cash conversion
101%
vs 119% in 2024
Total recordable incident rate
0.24
vs 0.22 in 2024
Scope 1 and 2 emissions
-43%
tCO
2
e, % vs 2020 baseline
Orders
£783m
+5%
Revenue
£777m
+3%
* Adjusted figures and organic constant currency (OCC) figures are alternative performance measures and are used consistently throughout the Annual Report.
They are defined in full and reconciled to the statutory measures in note 2 to the financial statements.
Strategic report Corporate governance Financial statements
rotork.com Rotork Annual Report 20251
Highlights of 2025
Upstream Electrification
Data Centres
Decarbonisation Biofuels
Specialist Pharmaceuticals
Midstream LNG
Wastewater Treatment
Combined Heat Power Plant
Desalination
Downstream Refinery
Oil &
Gas
Chemical,
Process &
Industrial
Water &
Power
Revenue
£223m +9% YoY
Adjusted operating margin
26.1%
Revenue
£203m +5% YoY
Adjusted operating margin
28.6%
Revenue
£351m -1% YoY
Adjusted operating margin
27.8%
NOAH NA – reliable, compact,
modular electric actuator
IQ3 Pro –
intelligent
multi-turn and
part-turn electric
actuators
Global presence, endmarket focus
Our divisions
Strategic report Corporate governance Financial statements
Rotork Annual Report 2025 rotork.com2
What we do
Oil & Gas
The leading supplier of actuators and
related products to the global oil and gas
industry. Our solutions support upstream,
midstream, and downstream operations.
We help customers enhance operational
efficiency, improve reliability, assure safety
and reduce emissions.
Chemical, Process & Industrial (CPI)
A specialist supplier of actuators and
instrumentation for niche applications across
chemical, process and industrial markets. The
division addresses critical reliability, efficiency,
and safety challenges for customers in sectors
including chemicals, metals, mining, heating,
ventilation and air conditioning (HVAC),
marine and other industrial end markets.
Water & Power
A leading supplier of actuators and related
products to the water and power generation
industries. In the water sector, the division
helps address water management, quality
and scarcity challenges in infrastructure,
treatment, and desalination markets.
Inpower, we provide solutions for both
traditional and alternative energy applications.
Rotork is the market-leading global provider of mission-critical
intelligent flow control solutions. Operating through three
end market-focused divisions, our products support
customers across a broad range of applications, from
transportation and processing, to recycling and recovery.
Upstream Electrification
Data Centres
Decarbonisation Biofuels
Specialist Pharmaceuticals
Midstream LNG
Wastewater Treatment
Combined Heat Power Plant
Desalination
Downstream Refinery
Oil &
Gas
Chemical,
Process &
Industrial
Water &
Power
Americas
Employees
555
Sales offices
7
Assembly facilities
3
Revenue
£210m
EMEA
Employees
1,851
Sales offices
14
Assembly facilities
10
Revenue
£301m
Asia Pacific
Employees
1,179
Sales offices
31
Assembly facilities
5
Revenue
£266m
Upstream Electrification
Data Centres
Decarbonisation Biofuels
Specialist Pharmaceuticals
Midstream LNG
Wastewater Treatment
Combined Heat Power Plant
Desalination
Downstream Refinery
Oil &
Gas
Chemical,
Process &
Industrial
Water &
Power
RC200 – compact pneumatic scotch
yoke actuator with instrumentation
Hanbay – high-precision
and high-speed, compact
electric actuator
CVA – linear and part-turn
precisionmodulating actuators
PICO – digital
pneumatic partial
stroke testing solution
Strategic report Corporate governance Financial statements
rotork.com Rotork Annual Report 20253
What we do continued
Global megatrends driving our growth
Our long-term growth is underpinned by powerful tailwinds in addition to our own strategic initiatives.
Automation
Automation is the use of technology to automatically
manage and optimise processes. It is a significant growth
driver for our business, as customers increasingly look
toupgrade existing systems and automate new projects
toenhance reliability, safety, efficiency and consistency.
Electrification
Electrification is the shift from mechanical to electrically-powered
control equipment and is another major growth driver for
Rotork. In many applications, electric actuators typically
consume less energy, provide more precise control and
deliverlower lifetime operating costs.
Digitalisation
Digitalisation enables industrial systems to operate more
efficiently, reliably, safely and sustainably. Our actuator and
software solutions give customers real-time insight into
performance, helping them detect issues early and optimise
processes to improve operational performance and reliability.
Positioning
>90%
Over 90% of Rotork’s sales are into industrial automation
andcontrolsystem markets
>50%
Over 50% of our sales are electric-powered actuators
40 years
We have 40 years of expertise in connected solutions
Example
CPI, data centre HVAC
Although cooling performance is critical in data centres,
weestimate that only 10 –15% of valves in the primary
building cooling circuit are currently automated. This presents
a significant opportunity as operators seek to optimise
systems to enhance their energy efficiency, reliability
anduptime. In 2025, we partnered with a data centre
inScandinavia, supplying a range of electric actuators
andgears to optimise power efficiency.
Oil & Gas, upstream electrification
Electrification is a major trend in upstream and midstream
energy markets as operators aim to reduce emissions, enhance
process control and reduce operating costs. In 2025, we
secured a significant order from an Asian customer to modernise
its brownfield operations, by replacing gas-powered actuator
units with our CVA electric actuator. Weensured seamless
integration with existing systems and maintained uninterrupted
output during the upgrade, supporting the customer’s
journey towards achieving net-zero emissions by 2030.
Read more on page 13
Water & Power, Rotork Service
Digitalisation is a key theme across our markets as customers
seek to improve operating efficiency, safety and reliability.
This creates significant opportunities for our connected
products, software and service offerings. In 2025, we
collaborated with a cogeneration power station in South
Korea to enhance actuator maintenance and diagnostics.
Using our iAM software and targeted analysis, we helped
the customer optimise maintenance planning, balancing
costand efficiency requirements.
Strategic report Corporate governance Financial statements
Rotork Annual Report 2025 rotork.com4
Our market dynamics
Rotork – positioned for long-term success
Our financial ambition is to achieve mid to high single-digit revenue growth and mid-20s adjusted operating profit margins over time.
Growth+ drives revenue
growth aboveour end markets
We benefit from the structural tailwinds of automation, electrification and digitalisation across our sectors,
supported by our Growth+ strategy, which focuses on: 1) high-growth Target Segments; 2) improving our
Customer Value proposition; and 3) offering Innovative Products and Services.
3.7%
OCC revenue growth in 2025
High margins, strong
productivity focus
Our business has high adjusted operating profit margins, supported by: 1) leading technology in niche markets;
2)the critical nature of our products; and 3) a differentiated route to market focused on end-user needs and
specifications, where certification and a deep understanding of our customers’ processes are essential.
24.6%
adjusted operating margins in 2025
Asset-light
manufacturingmodel
We operate a lean assembly and test manufacturing model supported by agile, in-region supply chains.
Ourasset-light and disciplined approach to capital allocation delivers strong underlying cash conversion
throughtheeconomic cycle.
101%
cash conversion in 2025
Disciplined approach
tocapitalallocation
Capital allocation is governed by a clear and structured policy, with priorities focused on: 1) organic investment
– encompassing new products, expansion into new end markets and regions, and internal systems; 2)maintaining
a progressive dividend policy; 3) pursuing strategic M&A; and 4) returning excess cash to shareholders.
£167m
invested in M&A, dividends
andbuybacks in 2025
Leading return on capital
The combination of high adjusted profit margins, an asset-light manufacturing model and a disciplined approach
tocapital allocation enables the Group to generate market-leading returns. Together, these strengths provide
aresilient platform for reinvestment and underpin long-term value creation for shareholders.
38.4%
ROCE in 2025
Strategic commitment
tosustainability
Sustainability is central to Rotork’s purpose and is embedded in the Growth+ strategy via our
‘EnablingaSustainable Future’ initiative. We continue to support customers to improve their
environmentalperformance, while advancing our own sustainability commitments.
-43%
reduction in CO
2
e vs 2020
Strategic report Corporate governance Financial statements
rotork.com Rotork Annual Report 20255
Investment case
Embedding our cultural DNA
Building on the work completed in 2024, the
Board was pleased to see the successful launch
of our cultural DNA initiative in 2025. We recognise
the importance of a strong and cohesive culture,
and our cultural DNA captures what makes Rotork
unique while guiding how we work and succeed
together. Strong participation and positive results
from our second externally-managed employee
engagement survey illustrate the positive impact
this work is already having throughout the Group.
2025 was another year of progress under the Growth+ strategy,
which has driven sustained growth, improved margins and
enhanced returns since its launch in 2022.
Stewardship
forsustainable
valuecreation
Dorothy Thompson, CBE
Chair
“ Our purpose remains clear:
keeping the world flowing for
future generations, guiding
everydecision we make.”
Dorothy Thompson, CBE
Chair
Performance in our Target Segments was
particularly encouraging, with further
improvements in profitability and ROCE, reflecting
the success of internal initiatives focused on
long-term value creation for all stakeholders.
Our purpose, ‘keeping the world flowing for
future generations’, remains clear and is the
foundation for our decision making and
long-term strategy.
Strategic report Corporate governance Financial statements
6Rotork Annual Report 2025 rotork.com
Chair’s statement
Capital allocation and dividend
Capital allocation remains a central focus for
the Board, and our priorities are unchanged,
asoutlined later in this report. During the year,
we completed the acquisition of NOAH Actuation
Co., Ltd. (‘Noah’) and returned excess capital
toshareholders through our share buyback
programmes. We continue to assess and pursue
strategic acquisitions that support our Growth+
strategy, while maintaining our disciplined approach
to capital allocation.
2025 marks another year of an increased dividend,
underlining the strength and resilience of the
business. The Board is recommending a final
dividend of 5.35p per ordinary share, which,
together with the interim dividend of 2.95p,
results in a total ordinary dividend of 8.30p per
share for the year. This is a 7.1% increase on
2024. Subject to shareholder approval, the
2025 final dividend will be paid on 2 June 2026
to ordinary shareholders on the register at the
close of business on 24 April 2026.
Board update
Karin Meurk-Harvey will step down as a
Non-executive Director following the conclusion
of the Company’s next AGM on 1 May 2026.
Karin has been a valuable member of the Board
since September 2021 and departs with our
sincere appreciation. The Board remains focused
on maintaining the highest standards of governance
and the Nomination Committee has commenced
a formal process to identify and appoint a suitable
new Board member who will bring complementary
expertise to support the Group’s long-term success.
People
On behalf of the Board, I would like to thank
allour employees for their dedication and
contribution. Delivering our purpose and
strategy would not be possible without their
talent and commitment. Together, we remain
focused on building a stronger, more efficient
and resilient organisation for the future, and I
look forward to what we will achieve together
in the year ahead.
Dorothy Thompson, CBE
Chair
9 March 2026
“ The launch of the cultural DNA
initiative is already guiding how
we work and succeed together,
while delivering a positive
impact across the Group.”
Dorothy Thompson, CBE
Chair
Section 172 (1) Statement
In accordance with Section 172 (1) of the
Companies Act 2006, we as a Board have
aduty to promote the success of Rotork for
the benefit of Rotork’s members. In doing
so, the Board has regard for the interests of
our people, the success of our relationships
with suppliers and customers, the impact of
our operations on the community and the
environment, the desirability of maintaining
a reputation for high standards of business
conduct and the consequences of decisions
in the long-term. Stakeholder considerations
are woven throughout all Board discussions
and decisions.
Further information on our stakeholder
engagement can be found on pages 98 to
105 of the Corporate Governance Report.
Details on how we have engaged with our
stakeholders on our sustainability strategy
can be found on page 28.
Strategic report Corporate governance Financial statements
rotork.com Rotork Annual Report 20257
Chair’s statement continued
I am especially grateful to our over 3,500 people
for their hard work, dedication andcommitment
in driving improvements across the Group. Aswe
focus on further Growth+ initiatives, I remain
confident in our long-term potential and ability
tocontinue creating sustainable value for
allstakeholders.
Another year of growth
2025 was another year of order and revenue
growth. Group orders rose 5.2% year-on-year
to £782.6m, driven by 6.0% organic constant
currency (OCC) growth and the acquisition of
Noah in March. Group sales increased by 3.7%
OCC to £777.3m (3.0% reported). The business
performed well despite tariff-related uncertainty
in the first half, and customer-driven project
delays in Oil & Gas at the end of the year.
Advancing our
Growth+ strategy
Kiet Huynh
Chief Executive Officer
Oil & Gas revenues were stable, delivering
0.6%OCC growth (reported decline of 1.2%).
Upstream grew, supported by progress in our
electrification Target Segment initiative, despite
challenging underlying market conditions.
Downstream performance was stable, with
support from service and brownfield-related
activity. Order intake remained good; however,
midstream experienced a weaker second half
due to customer-driven project delays at the
end oftheyear.
“ Thanks to the dedication of
ourmore than 3,500 people,
wedelivered further progress
in2025 and continued to build
long-term value for all
ourstakeholders.”
Kiet Huynh
Chief Executive Officer
The Group delivered another year of progress, despite mixed market
conditions. Our purpose-driven Growth+ strategy continued to
deliver tangible financial benefits, and we accelerated capital
deployment to support long-term growth and value creation.
Wealso made meaningful improvements to internal processes
andfurther strengthened our culture.
Strategic report Corporate governance Financial statements
8Rotork Annual Report 2025 rotork.com
Chief Executive Officer’s statement
Capital allocation
We continue to invest in
strengthening our leadership
inintelligent flow control,
whilemaintaining a progressive
dividend and returning excess
capital to shareholders.
EMEA and the Americas delivered solid growth
in 2025, with performance in each region
underpinned by particularly strong results
intheMiddle East and the USA respectively.
APACremained stable over the period.
Rotork Service reported another good performance,
growing faster than the broader Group. It reached
24% of Group sales in 2025 (23% in 2024).
Rotork Service is a key differentiator versus our
peers and is managed as a separate unit by
each of our divisions.
High profitability and returns
Adjusted operating profit was strong in 2025 at
£191.5m, resulting in 100bps of margin expansion
to 24.6% (2024: 23.6%). This reflected good
operating leverage, favourable mix and ongoing
productivity initiatives, together driving 10.0%
OCC adjusted operating profit growth. Reported
operating profit was £157.1m, up 15.6%
year-on-year, with the principal adjustment
relating to costs associated with our Business
Transformation programme.
Another year of growth continued
CPI performed strongly, achieving 7.0% OCC
growth. Reported revenue growth was higher
at 9.0%, including the acquisition of Noah in
March. Underlying core markets were relatively
subdued in the period. However, CPI’s strategy
to pivot towards growth opportunities and its
strategic focus on speciality chemicals, mining,
critical HVAC and marine markets enabled the
division to deliver good growth, particularly in
the second half of the year.
Water & Power delivered good growth in 2025,
increasing 6.1% OCC (reported growth of 4.5%).
In water, investment in modernisation, resilience
and technology supported broad-based
growth, with strong activity in infrastructure
upgrades and advanced treatment projects.
Power markets continued to recover, with good
growth inrefurbishment work in the traditional
powersegment.
ROCE improved again to 38.4% (2024: 37.3%)
demonstrating the attractiveness of the Group’s
competitive positioning and asset-light
manufacturing model. Our performance was
helped by the increase in margins and
disciplined control of capital employed.
Active and disciplined capital allocation
We retained a strong balance sheet and ended
the year with net cash of £65.3m (31December
2024: £125.3m), with the reduction mainly reflecting
M&A activity and additional share buybacks.
Rotork continues to take a clear and disciplined
approach to capital allocation, focused on
delivering both growth and returns. Our priorities,
in order, remain organic investment in the
business, a progressive dividend, strategic
acquisitions and additional shareholder returns.
We are pleased with the progress made in 2025.
The successful acquisition of Noah in March
broadened our electric actuator offering, and
the business has performed well since joining
Organic investment – focused on capex and
the Business Transformation programme
1. 2.
Ordinary dividend – progressive policy
8.3p
Full year dividend
pershare in 2025
7.1%
Full year dividend
persharegrowth in 2025
Value-creating M&A – bolt-on focus,
in line withGrowth+ strategy
3. 4.
Excess capital – returned to shareholders
Capital allocation
policy
the Group. We completed the £50m buyback
announced in March 2025 and confirmed a
follow-on £50m programme in November.
Wealso returned £66.6m (2024: £63.3m)
through our ordinary share dividend.
Growth+ strategic progress
Our Growth+ strategy is rooted in our core
purpose, ‘keeping the world flowing for future
generations’, and in our vision to lead in intelligent
flow control. The strategy reflects our commitment
to sustainability and our contribution to a
low-carbon future, while delivering advanced,
intelligent solutions that enhance safety, efficiency,
and uptime for our customers. Electrification,
automation and digitisation are key tailwinds
forthe Group, and our strategy is focused on
maximising these long-term structural trends.
At the core of the Growth+ strategy are three
pillars: Target Segments, Customer Value and
Innovative Products and Services. In 2025,
wemade good progress on each of these pillars.
1.6%
Capex to sales
in2025
£26m
Invested in Business
Transformation in 2025
£42m
Noah acquisition
cost
£11m
Sales contribution
from Noahin 2025
£60m
Returned via
buybacks in 2025
£40m
Buyback remaining
at 2025 year-end
Strategic report Corporate governance Financial statements
rotork.com Rotork Annual Report 20259
Chief Executive Officer’s statement continued
“ In 2025 we strengthened our
culture through our new DNA
initiative and reinforced the
foundations that will support
ourlong-term growth.”
Kiet Huynh
Chief Executive Officer
The Innovative Products and Services pillar is
centred on extending our competitive advantage,
adapting to changing market conditions and
capturing new opportunities. We continued to
streamline how we deliver innovation, with an
increasing focus on insights from our voice of
the customer programme to shape our product
roadmap. In 2025, we launched the IQ3 Perform
electric actuator to further strengthen our flagship
range. We also introduced the new RTP positioner
range, offering improved long-term reliability,
and progressed several newconnectivity solutions.
In addition, we introduced our AI hub,
acollaborative initiative designed to explore
howartificial intelligence can support innovation,
efficiency and growth across the Group. The
initiative establishes clear governance and
integration principles, encourages the responsible
use of AI within our business and identifies both
process-related and product-related opportunities.
Growth+ priorities
Our robust business model and Growth+ strategy
provides a strong foundation for sustainable
growth and long-term value creation for all
ourstakeholders. We remain ambitious, and
beyond 2025 see significant opportunities
tounlock further potential across the Group.
We continue to see good momentum in our
Target Segments initiatives and are particularly
excited about the prospects for our recent
acquisitions, Hanbay and Noah, within data
centres. We have been investing to re-enter
thenuclear market as the long-term outlook
forthis part of the power sector is very
attractive and we are well positioned. Rotork
Service also provides a good runway for
growth, given our significant installed base,
thecriticality of our products and our
well-embedded customer relationships.
Growth+ strategic progress continued
Target Segments focus on growth opportunities
that enable Rotork to grow ahead of its underlying
markets, with specific opportunities identified
in each division. We performed strongly in 2025,
with Target Segment OCC revenue growth of
8% for the year (2024: 9%).
In Oil & Gas, successes included a significant
order from a customer in APAC to modernise
its upstream operations. This involved replacing
gas-powered actuators with our electric CVA
product, supporting its climate-related goals.
In CPI, critical HVAC is a key Target Segment
and in 2025 we partnered with a data centre
customer in Scandinavia, supplying electric
actuators into an artificial intelligence and
high-performance computing expansion project.
Water & Power continued to make good progress
in several of its Target Segments, including
supporting a North American customer with
itsPFAS water treatment project.
The Customer Value pillar focuses on strengthening
our offering and enhancing internal processes
to provide industry-leading customer experience.
In the year, we made good progress on our
Business Transformation programme, updating
our systems and aligning processes, including
the continued rollout our new enterprise resource
planning (ERP) system to several additional sites.
We also advanced several go-to-market initiatives,
including the expansion of our facility in Saudi
Arabia, alongside broader commercial
excellence initiatives.
Looking further ahead, we also see meaningful
opportunities to reinforce the strength of the
Group through disciplined capital allocation
aligned with the Growth+ strategy. Alongside
investing in organic growth, we will continue
topursue targeted M&A to enhance our
capabilities and market positions.
Strategic report Corporate governance Financial statements
Rotork Annual Report 2025 rotork.com10
Chief Executive Officer’s statement continued
Safety continues to be a key priority
Safety remains the foundation of our operations
and culture. We are committed to ensuring the
wellbeing and safety of our people and partners
by maintaining the highest standards. Our
performance in 2025 was broadly in line with
2024, with a lost time injury rate (LTIR) of 0.08
(2024: 0.08) and a total recordable incident rate
(TRIR) of 0.24 (2024: 0.22). We will continue
toinvest in robust systems, continuous training
and proactive risk management to work towards
our zero-harm objective.
DNA and behaviours driving engagement
In 2025, we introduced our cultural DNA initiative
to support growth, scalability and our long-term
success. It builds on our strong heritage and the
qualities that make Rotork unique. Our DNA
was defined as We value our customers, We
grow together and We win as a team, after
anextensive internal programme in 2024 to
understand our culture, identify our strengths
and uncover opportunities. The DNA initiative
“ Our Growth+ strategy provides
astrong platform, and beyond
2025 we see clear opportunities
to unlock further potential across
the Group.”
Kiet Huynh
Chief Executive Officer
and associated behaviours were launched at
thestart of the year, supported by Group-wide
training in the following months. During site
visits, we have witnessed the programme in
action and taken the opportunity to listen to
the perspectives of employees across our locations.
2025 was the second year of our
externallymanaged engagement survey.
Itwasparticularly pleasing to see 86% of
ouremployees participate and a significant
increase in our overall engagement scores.
Feedback from the survey provided valuable
insights to help launch our cultural DNA initiative
and will continue to be one of the ways we
develop Rotork’s culture, enabling us to
measure and enhance our initiatives in future.
Continued good progress onsustainability
We made good progress on our sustainability
initiatives during the year, maintaining our AAA
MSCI ESG rating, and advancing towards our
ultimate net-zero aim. We achieved our 2030
Scope 1 and 2 (market-based) emissions
reduction target ahead of schedule. This
reflects the delivery of energy-efficiency
projects, investments we made in on-site
renewable generation and increased use of
renewable power certificates. Emissions
reductions in 2025 were supported inpart by
the 444 kWp of solar generation weinstalled at
our Lucca facility in Italy.
Sustainability remains a key focus and wehave
stretched our 2030 target to a 60% reduction
from the 2020 baseline.
Elsewhere, our customer-focused innovation
continues to enhance product efficiency and
sustainability performance. A highlight in 2025
was the enhancement of the YT-1000 flagship
positioner, which supports our customers’
decarbonisation plans and our own ambitious
Scope 3 emissions reduction target. The upgraded
version delivers an estimated 30% reduction in
annual air consumption.
Outlook
Given the foundations of the Growth+ strategy
and the progress made since 2022, we remain
confident in our ability to deliver our financial
ambition of mid to high single-digit sales growth
and mid-twenties adjusted operating margins
over time.
For 2026, we expect continued good
momentum in CPI and Water & Power, with our
Target Segments and Rotork Service supporting
performance across the divisions. In Oil & Gas,
we expect a stable performance, with a higher
second half weighting. Our Target Segment
andRotork Service initiatives continue to ensure
we outperform wider end markets, where
downstream markets are expected to remain
stable, and upstream and midstream
areanticipated to remain subdued. While we
are mindful of the recent geopolitical
uncertainty, we expect further progress
onanOCC basis for the Group in 2026.
Kiet Huynh
Chief Executive Officer
9 March 2026
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rotork.com Rotork Annual Report 202511
Chief Executive Officer’s statement continued
Supported by our DNA
Learn how the Board monitors our cultural DNA on page 92 and 93
Growth+
overview
Our Growth+ strategic pillars, cultural
DNA initiative, value-creation model and
the seven KPIs that measure our progress.
Purpose and vision
Read more on page 12
Growth+ strategic pillars
Read more on page 13
Our DNA
Read more on page 16
Business model
Read more on page 18
KPIs
Read more on page 19
Customer
Value
Target
Segments
Innovative Products
and Services
Purpose
Keeping the world flowing
for future generations
Vision
To be the leader in intelligent flow control
Enabling a Sustainable Future
Supporting our customers to improve their environmental performance,
while continually advancing our own
Strategic report Corporate governance Financial statements
Rotork Annual Report 2025 rotork.com12
Our strategy
“ Target Segments continue
todrive growth above our
underlying end markets, and
we are particularly pleased
with the 8% growth delivered
in 2025.”
Kiet Huynh
Chief Executive Officer
Target Segments
Investing in areas of significant profitable growth potential.
Strategy
The Target Segment pillar focuses on finding
attractive growth areas in our current markets,
expanding into new ones, and pursuing market
share opportunities. We concentrate on areas
where our product offering and customer needs
give us a clear right to play. This focus does not
mean we will stop competing in our core segments,
where we expect to grow more in line with the
underlying market.
Progress during 2025
Target Segments grew at 8% in 2025.
• Oil & Gas delivered strong progress in Target
Segments with several notable wins, including
modernising gas-powered actuators in Asia,
providing a tailored electro-hydraulic solution
in North America that improved control and
reduced emissions, and securing multiple
new LNG project awards.
• CPI recorded good success across its Target
Segments supplying electric actuators to a
European data centre, supporting an Asian
biopharma customer’s intelligent manufacturing
transformation with smart positioning products,
and securing decarbonisation-linked orders
for a new European biofuel producer of
sustainable aviation fuel and renewable diesel.
• Water & Power continued to gain traction
inits Target Segments. Highlights included
supporting a North American customer on a
PFAS water-treatment project, andwinning
several desalination orders, including a
major copper mining projectin South America.
Target Segments by division
Oil & Gas
• Upstream electrification
• Midstream electrification
• LNG
• Brownfield opportunities
Water & Power
• Water infrastructure
• Water, wastewater and treatment
• Desalination
• Alternative energy (incl. nuclear)
Chemical, Process & Industrial
• Speciality chemical
• Critical HVAC
• Mining
• Marine
Decarbonisation is a Target Segment
forallRotork divisions.
Division: Water & Power
Segment: Nuclear
Nuclear is increasingly viewed as a reliable, low-carbon baseload option in markets where
broader electrification trends and AI are causing rising power demand. In its high-case
scenario, the International Atomic Energy Agency is forecasting 950GW of global nuclear
generating capacity in 2050. We expect good growth in refurbishment-related demand in the
medium term, and significant potential in new-build small modular reactors (SMR) in the 2030s
given their flexibility, lower upfront costs and suitability for more distributed power.
Rotork’s positioning
Rotork has supported the nuclear industry since the 1960s, with a significant installed base of
safety-related containment actuators in service worldwide. In 2025, we set out a clear strategy
andcommitted targeted investment in the nuclear market, leaving us well placed to capitalise on
thesignificant opportunities ahead.
Strategic report Corporate governance Financial statements
rotork.com Rotork Annual Report 202513
Our strategy continued
“ We made strong progress in
2025 to deliver a faster, more
responsive customer experience.”
Kiet Huynh
Chief Executive Officer
Customer Value
Continually enhancing the customer experience.
Strategy
The Customer Value pillar strengthens our offering
and streamlines internal processes to deliver an
industry-leading customer experience. It includes
three key initiatives: 1) go-to-market enhancements
to refine how we organise and support customer
facing roles; 2) our global supply chain programme,
to reduce lead times and improve flexibility; and
3) improvements to the customer experience
through enhanced internal processes that drive
accountability, transparency and speed. Our
internal process improvements are underpinned
by the introduction of a single ERP platform.
Progress during 2025
• We introduced several commercial excellence
initiatives, linked to the rollout of our DNA
and behaviours, strengthening the sales
organisation. These included online tools
toassess key competencies and to deliver
targeted training in customer service.
• Rotork joined the Rockwell Technology Partner
programme, with the IQ3 Pro actuator with
Ethernet connectivity now included in its
product catalogue and design tools.
• We formally opened our expanded facility in
Saudi Arabia, demonstrating our commitment
to localising operations in an important region.
• We launched our internal AI initiative to
establish howitcan support innovation,
efficiency and growth across our business.
• We continued to progress the rollout of our
new ERP system across the Group, including
steps to improve quote responsiveness.
Customer Value initiatives
Go-to-market enhancement
• Global key account management
• Project pursuit programme
• Sales force academy
• Rotork Service network expansion
Global supply chain programme
• Lead time reduction initiative
• Global supply chain programme
Improved customer experience
• Business process re-engineering
• Faster quotation and on time delivery
Strategic report Corporate governance Financial statements
Rotork Annual Report 2025 rotork.com14
Our strategy continued
Initiative: Go-to-market enhancement – Rotork Service
Rotork Service launched the next evolution of reliability services in 2025, integrating predictive
technologies, expanding product coverage, and streamlining processes for faster, easier and more
tailored maintenance. Backed by highly trained engineers, intelligent asset data, and a global support
network, the enhanced offering delivers deeper insights and more consistent, factory-certified service
throughout the entire asset lifecycle.
Innovative Products
andServicesinitiatives
• Target Segment aligned investment
• Electrification
• Connected and digital products
• Make vs buy M&A
• Leverage Rotork Service
“ This year we accelerated our
innovation cadence, pioneering
advancements in connectivity,
control and design.”
Ross Pascoe
Chief Technology Officer
Innovative Products and Services
Accelerating innovation.
Strategy
The Innovative Products and Services pillar focuses
on extending our competitive advantage, adapting
to changing market conditions, addressing new
opportunities and improving our customers’,
and our own, sustainability. Since the launch of
Growth+, we have streamlined how we deliver
innovation and how we develop new products,
with increasing emphasis on voice of the customer
initiatives to drive our product road map. We
remain aligned to our Target Segment strategy,
focusing on connected electric solutions with
advanced diagnostics and high levels of efficiency.
Our long-term plans include evaluating
make-versus-buy options, demonstrated
bytheacquisition of Noah in theyear.
Progress in 2025
• We launched our IQ3 Perform actuator,
extending the reach of our flagship range.
This helps increase market penetration in
Target Segments like desalination.
• We introduced the RTP 4000 range in the
second half of the year. This next-generation
intelligent valve positioner is designed to
offer seamless installation and diagnostics,
and ensure long-term reliability.
• We introduced software for integration
withRockwell products, and continued
thedevelopment of our non-intrusive
Ethernetsolutions.
• We launched a new configuration of the
YT-1000 value positioner, significantly reducing
energy usage (read more on page32).
• We conducted our largest voice of the
customer programme to further inform our
product road map, and strengthened our
advanced applications engineering capability.
Initiative: Target Segment aligned product – IQ3 Perform
To broaden market reach, we launched IQ3 Perform in 2025. This new tier of the IQ3 platform is
designed to target underrepresented Target Segments (such as desalination) by providing a more
flexible and accessible option within our flagship range. IQ3 Perform expands the choice available to
customers, while maintaining the core reliability, diagnostics and performance that define the IQ3 family.
Strategic report Corporate governance Financial statements
rotork.com Rotork Annual Report 202515
Our strategy continued
Evolving our culture
In 2024, we embarked on a culture journey with our employees with the aim of acknowledging
ourstrengths as an organisation, to reflect on what makes our culture unique and identify long-term
opportunities to accelerate growth and scalability. While our existing values have served us well over
the past six years, this initiative provided us with an opportunity to evolve, to continue to support
ourGrowth+ strategy and shape Rotork’s sustainable future, together.
2024 – understanding our culture
• In 2024, we undertook extensive discussions across Rotork,
including leadership interviews, global crowdsourcing
events and employee focus groups, to better understand
our strengths and areas for growth. These insights helped
us identify opportunities to evolve and build on our strong
cultural foundations.
• Following the initial insight phase, we hosted a series of
global employee workshops to share findings and gather
further feedback to evolve our previous values into our
cultural DNA. We engaged over 800 employees across
27countries during the insight and design phases.
• As a result of this inclusive approach, our DNA has
genuinely been shaped by our people and therefore
resonated clearly across Rotork in 2025.
2025 – launching our evolved DNA
Q1
• In March 2025, we introduced our evolved
culture and DNA to our senior leaders at
ourLeadership Conference.
• At the Leadership Conference, we equipped
them with the skills to role model our DNA
and to champion embedding it intothe
fabric of everything they do with their
teamslocally.
Q2
• From April we cascaded our new cultural
DNA and associated behaviours to all
employees through aseries of events,
including town halls hosted by our leaders.
• We relaunched our recognition scheme
aligned to our evolved DNA, which resulted
in astrong uptake in the way our colleagues
recognised each other.
• In May, we launched our new Culture
Champion Network, which has played an
important role in embedding our cultural
DNA across all locations. The global network
was heavily oversubscribed, demonstrating
the strong level of engagement with our
evolved culture.
Strategic report Corporate governance Financial statements
Rotork Annual Report 2025 rotork.com16
Our DNA
Q3
• During Q3, we focused on embedding our cultural DNA into the way we lead, grow
and engage our people, recognising this as essential to unlocking our full potential.
We introduced our new behavioural framework, which clearly defines the behaviours
expected at Rotork andprovides a consistent foundation for development,
performance andleadership.
• We also launched our brand-new flagship global People Manager Programme. This
critical enabler is taking over 500 people managers through a comprehensive journey
to cement our cultural DNA and the behaviours into day-to-day leadership practices.
• We fully integrated the DNA and behavioural framework into our performance
management approach, resulting in a strong focus on both the ‘what’ and
‘how’ of performance. This integration enabled us to reinforce clear behavioural
expectations and support more meaningful conversations around the
behaviours and growth of our people.
• Measuring the engagement of our people in this transformation was
keyto gauging our success. Our annual employee engagement survey in
September showed a significant increase in the global engagement score,
outperforming similar organisations participating in their second year using
the external engagement partner. One of the questions we measured was
related to the extent to which our managers consistently role model our DNA
andbehaviours. This question achieved a strong 4.08 out of 5. This demonstrates
that our managers are leading by example and supporting our evolution by role
modelling our culture and behaviours.
Our DNA shapes how we lead, grow, and engage our people and customers. It fosters behaviours and experiences that drive success,
reflecting what makes Rotork unique while building on strong foundations for collaboration, innovation, and shared success.
Learn how the Board monitors our cultural DNA on page 92 and 93
In 2026 and beyond
Looking ahead, we continue on our multi-year
journey to ensure that our culture remains a driver
of long-term success. Byembracing our evolved
DNA as Rotork scales, we are building a business
that is customer focused and connected, while
also emphasising human performance.
Strategic report Corporate governance Financial statements
rotork.com Rotork Annual Report 202517
Our DNA continued
Customers
£783m
orders in the year
Read more on page 24
Employees
£216m
wages, salaries and
benefitspaid
Read more on page 50
Supply
chain
£390m
spent with external suppliers
Read more on page 41
Society
-9%
CO
2
emissions, YoY
Read more on page 35
Governments
and regulators
£39m
corporate cash tax paid
Read more on page 54
Shareholders
£67m
cash dividends to
ordinaryshareholders
Read more on page 24
1
3
2
4
5
How we create value
The value we created in 2025
Our proprietary intellectual
property, highly skilled people,
global manufacturing footprint
and strong financial position
arethe foundation of our
differentiated business model.
Our inputs
Our Growth+
strategy
Read more on page 12
Understanding
customer needs
We focus on deep engagement with
ourcustomers through our route to
market and sales teams to understand
their automation challenges and
operational goals. This application
engineering insight enables us to provide
tailored solutions and strengthens
long-term partnerships.
Driving innovation
in critical applications
Innovation is a key pillar of our
Growth+strategy. We invest in
technologies and R&D to develop
solutions that address the
mission-critical operations of
our customers, to ensure we meet
superior performance, reliability
and sustainability requirements.
Our leading service offering
provides furthercustomer
insights that also
drive innovation.
Asset-light, world-class
manufacturing
We are a global manufacturing business,
with sites operating around the world.
Our asset-light design, assembly and test
model ensures operational flexibility and
low financial capital employed.
Comprehensive
lifecycle support
We provide end-to-end lifecycle
services,including installation, parts,
maintenance, upgrades and digital
monitoring and preventative
maintenance. These offerings help
customers maximise operational
efficiency, reduce downtime and
improve safety.
Self-reinforcing
capital allocation
We continue to invest to strengthen our
leadership in intelligent flow control. Our
disciplined approach prioritises organic
growth initiatives, while targeted
external investments expand our
productcapabilities in existing and
adjacent markets.
How we
create value
Strategic report Corporate governance Financial statements
Rotork Annual Report 2025 rotork.com18
Business model
Financial KPIs
Growth, earnings quality and capital efficiency.
Revenue growth %
3.0%
Linked to remuneration
R
Adjusted operating margin %
24.6%
Linked to remuneration
R
25
24
23
25
24
23
Why we measure it
Clear, measurable indicator of business performance
reflecting underlying market demand, strategic
progress and M&A.
How we calculate
Increase in revenue year-on-year divided by prior
year revenue.
Comments on results
Group revenue increased 3.0% year-on-year.
OCC growth reached 3.7%. The contribution
from Noah, acquired in March, was more than
offset by adverse foreign exchange movements.
Our ambition is to achieve mid to high single-digit
revenue growth year-on-year over time.
Why we measure it
Provides an underlying view of profitability,
excluding non-recurring items, enabling a better
assessment of the quality of revenue growth,
operational efficiency and performance against
strategic goals.
How we calculate
Adjusted operating profit is shown as a %
ofrevenues and excludes amortisation and
non-recurring items.
Comments on results
The adjusted operating margin increased 100bps
year-on-year on a reported basis (+140bps OCC),
helped by favourable mix and operational
efficiencies. Our ambition is to achieve a
mid20sadjusted operating margin over time.
Cash conversion %
101%
Linked to remuneration
R
ROCE %
38.4%
25
24
23
25
24
23
Why we measure it
Measures how effectively profits are turned
intocash, ensuring quality of earnings and
liquidity to fund operations, investments
andshareholder returns.
How we calculate
Cash flow from operating activities before tax
outflows, other cash adjustments (including
Business Transformation costs) and cash pension
costs as a percentage of adjusted operating profit.
Comments on results
Cash conversion remained over 100%,
butdeclined year-on-year due to an increase
inworking capital.
Why we measure it
Provides a view on how efficiently we generate
profit from our capital base, providing a clear
indicator of operating and capital productivity.
How we calculate
Adjusted operating profit as a percentage of
average capital employed. Capital employed is
defined as shareholder funds less cash held, with
the pension fund surplus/deficit net of deferred
tax deducted/added back.
Comments on results
ROCE improved to 38.4%, helped by the increase
in adjusted operating margins and disciplined
control of capital employed.
12.0
4.9
3.0
22.9
23.6
24.6
120
119
101
33.9
37.3
38.4
Strategic report Corporate governance Financial statements
rotork.com Rotork Annual Report 202519
KPIs
Non-financial KPIs
Health, safety and environmental performance.
Total recordable incident rate (TRIR)
0.24
Linked to remuneration
R
Adjusted EPS growth %
6.9%
Linked to remuneration
R
25
24
23
25
24
23
Why we measure it
Measures workplace safety performance,
helpingto demonstrate commitment to
employee wellbeing, compliance with health
andsafety standards and quality of
manufacturing operations.
How we calculate
TRIR is the number of recordable incidents
multiplied by 200,000 divided by the number
ofhours worked.
Comments on results
TRIR increased +0.02 in 2025, but overall remains
at a low level. We have a relentless focus on
safety as we work towards our zero-harm objective.
Why we measure it
Reflects underlying earnings performance
byexcluding one-off items. Demonstrates
progress in delivering strategic initiatives
andshareholder value.
How we calculate
Increase in adjusted basic EPS year-on-year
(based on adjusted profit after tax), divided
bythe prior year adjusted basic EPS.
Comments on results
Adjusted EPS growth of 6.9% was in line
withthe growth in adjusted operating profit.
Netfinance income was lower in the year,
offsetby alower share count.
Scope 1 and 2 emissions tCO
2
e %
-43%
Linked to remuneration
R
25
24
23
Why we measure it
Direct and indirect greenhouse gas emissions
fromoperations and energy use, providing
aclearindicator of environmental impact and
progress towards our decarbonisation goals.
How we calculate
Energy usage, transport and refrigerant data is
converted to Scope 1 and Scope 2 (market-based)
equivalent tonnes of CO
2
e and compared to our
2020 baseline.
Comments on results
We achieved our targets earlier than planned
reflecting the projects and investments
throughout the business.
Financial KPIs continued
Growth, earnings quality and capital efficiency.
(32)
(37)
(43)
14.8
8.7
6.9
0.26
0.22
0.24
Strategic report Corporate governance Financial statements
Rotork Annual Report 2025 rotork.com20
KPIs continued
£m 2025 2024 Change OCC change
Revenue 351.2 355.5 -1.2% +0.6%
Adjusted operating profit 97.6 92.0 +6.0% +9.1%
Adjusted operating margin 27.8% 25.9% +190bps +220bps
The leading provider of actuators
and related technologies for the
global oil and gas sector. Our
solutions support operations
across the entire value chain,
from upstream (production and
operations), to midstream (pipelines
and LNG) and downstream (refining
and processing). As customers
continue to focus on automation
and electrification, our products
help them improve operational
efficiency, enhance reliability,
strengthen safety and
loweremissions.
% of Group revenue
45%
EMEA delivered good growth during the year,
supported by strong performance in electrification,
LNG and downstream markets. Performance in
APAC and Americas was more subdued, with
APAC reporting slower growth in core markets
in the second half.
Adjusted operating profit for the division was
£97.6m. The margin improved year-on-year,
supported by growth in Target Segments,
favourable product mix and ongoing
operational efficiencies.
End markets
We continue to see opportunities across Oil &
Gas, with activity increasingly focused on gas,
LNG and customer efficiency and automation
initiatives.
In upstream, we anticipate subdued market
conditions
alongside ongoing opportunities
driven by gas and electrification trends.
Although emissions regulation has been
deprioritised in some regions, operators are
focused on cost discipline and efficiency,
creating opportunities for our upstream
electrification initiatives.
Midstream investment in 2026 is likely to be
subdued, but led by growth in natural gas
infrastructure, LNG-linked assets and brownfield
efficiency initiatives. These trends reflect broader
demand for energy security, flexibility and
reliability, particularly in regions with a greater
reliance on gas-fired power generation.
With supportive refining margins, stable
demand and limited new capacity planned, we
expect the downstream market to remain stable
in 2026. We anticipate spending to be focused
on maintenance, upgrades and efficiency
initiatives, consistent with our higher service
and brownfield exposure within this segment.
Key takeaways
• Revenues were stable on an OCC basis
(+0.6%)with growth in upstream and a
soliddownstream performance.
• Midstream softened in the second half
reflecting customer-driven project delays.
• Good growth in EMEA, while growth in
APAC and the Americas was more muted.
• Adjusted operating margin increased due to
mix and operating efficiencies.
Performance
Divisional revenues were stable, delivering
0.6%OCC growth (reported decline of 1.2%).
Upstream revenues increased during the year,
supported by continued progress in our
electrification Target Segment initiative, despite
weak underlying market conditions. Downstream
revenues were stable for the year, in line with
broader market trends, supported by good
levels of service andbrownfield-related activity.
In midstream, LNG investment remained a
tailwind for the business; however, core
revenues declined during the year.
Divisional growth slowed in the second half
of2025. Order rates remained good; however,
midstream experienced a weaker second half
due to customer-driven project delays at the
end of the year.
Division:
Oil & Gas
Segment: Rotork Service
Sector: Downstream
Region: EMEA
Service continues to represent a key
growthopportunity in our downstream
markets. In 2025, we supported a leading
refinery in Western Europe to enhance
actuator reliability and implement a
structured preventative maintenance
programme. Through phased upgrades to
our latest connected electric actuators,
combined with proactive diagnostics using
our iAM monitoring platform, we helped the
customer improve operational performance
and asset reliability.
Strategic report Corporate governance Financial statements
rotork.com Rotork Annual Report 202521
Divisional review
CPI supplies specialist actuators
and instruments for niche, critical
applications across a broad range
of chemical, process and industrial
markets. Rotork has historically
been underrepresented in several
of these markets, where we have
significant potential to increase
market share and develop new
opportunities. The division
addresses critical reliability,
efficiency and safety challenges
for customers.
% of Group revenue
29%
Divisional growth rates accelerated in the second
half, driven by our initiatives in speciality chemicals,
data centres and marine, while underlying
market trends remained broadly unchanged.
The Americas delivered strong growth supported
by robust performance in HVAC and CPI’s core
markets. EMEA and APAC recorded modest
increases, driven by good growth in Target
Segments, partly offset by weakness in core
process markets.
Adjusted operating profit for the division was
£58.2m. Margins increased during the year, as
higher operating leverage more than offset the
initial margin dilution from the integration of Noah.
End markets
We continue to see significant growth opportunities
for CPI, underpinned by our Target Segment
strategy. In speciality chemicals, we expect
initiatives across a range of niche industries to
continue to support growth, and bulk chemical
markets are anticipated to remain mixed in the
short to medium term.
In HVAC, we anticipate our expansion into
industrial markets to remain a positive contributor,
with the outlook for data centres particularly
encouraging. We are seeing increasing traction
from our go-to-market approach for both
Hanbay and Noah within the server room,
where opportunities are supported by the
transition to liquid-based cooling.
In mining, market conditions remain supportive.
We see continued investment in localised processing
capacity, easing permitting requirements and
increased adoption of higher-technology
automated solutions to benefit demand
forourelectric actuator products.
Key takeaways
• Revenues grew 7.0% OCC, with a strong
second half performance.
• Strong growth in key Target Segments –
including speciality chemicals, HVAC, marine
and mining.
• Core markets remained subdued during the year.
• Adjusted operating margin increased, driven
by positive operating leverage.
Performance
Divisional revenues grew by 7.0% OCC year-on-year
(reported growth of 9.0%). Despite a weak
chemicals market, overall chemicals revenues
were stable due to a strong performance in
speciality chemicals offset by continued
pressure in the bulk markets due to industry
overcapacity. Within speciality chemicals, we
recorded good growth in battery chemicals,
pharmaceutical and biofuels
markets. HVAC
continued to deliver good growth,
supported by
solid performance in critical HVAC and very
strong demand in data centre markets. Mining
and marine also delivered strong growth during
the year. In mining, investment increased across
copper and gold markets. In the marine
segment, growth was driven by the increasing
electrification of vessels, higher defence spending
in Europe and the USA and robust activity in
Asian commercial new build and retrofit markets
.
Core process markets were relatively subdued
inthe year.
Division:
Chemical, Process
& Industrial
£m 2025 2024 Change OCC change
Revenue 223.4 205.0 +9.0% +7.0%
Adjusted operating profit 58.2 53.0 +9.9% +9.9%
Adjusted operating margin 26.1% 25.8% +30bps +70bps
The outlook for marine remains encouraging,
supported by the industry’s transition to sustainable
fuels and electrification trends across new build
and retrofit markets. Continued regulatory
pressure, fleet renewal and defence-related
investment in Europe and the USA are expected
to underpin demand over the medium term.
While the structural tailwinds of automation,
electrification and digitalisation remain in place,
we expect core process markets, which include
steel, cement, pulp and paper, to remain
relatively subdued.
Segment: Target
Sector: Speciality chemicals
Region: APAC
CPI remains focused on key Target Segments,
including speciality chemicals, where we
see good growth potential. In 2025, we
supported a major Chinese biopharmaceutical
customer in expanding operations and
improving process efficiency, while maintaining
high-quality standards. Aspart of its intelligent
manufacturing transformation, we delivered
a range of products with enhanced
diagnostics to meet critical requirements
forstability, accuracy and monitoring.
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Rotork Annual Report 2025 rotork.com22
Divisional review continued
A leading supplier of actuators
and related products to water,
wastewater and treatment
markets. It also serves power
markets, from geothermal
through to gas-powered
applications. We have significant
growth opportunities through
the structural tailwinds in our
markets and demand from
customers seeking to address
water quality and scarcity
challenges. Water markets
represented around 70% of
divisional sales intheyear.
% of Group revenue
26%
The Americas grew strongly, with robust increases
in water treatment and power. APAC also saw
strong momentum, supported by good growth
in desalination, water infrastructure and
alternative energy. EMEA was more subdued,
reflecting softer demand in water markets.
Adjusted operating profit for the division was
£58.0m. Despite operating leverage on higher
volumes, mix effects, currency headwinds and
increased investment led to a year-on-year
decline in adjusted operating margin.
End markets
Global water investment continues to grow,
supported by rising water scarcity, population
increases, climate change and ageing
infrastructure. Modernisation and resilience
programmes are driving activity across most
markets, and we expect this demand to remain
good. Infrastructure upgrades and advanced
treatment projects should continue to provide
attractive opportunities, alongside long-term
growth in desalination, which will be further
supported by our internal initiatives.
Power markets continue to recover, supported
by sustained growth in electricity demand from
industry, data centres and electrification. We
anticipate service and refurbishment activity to
remain robust in our core gas and traditional
power markets. The outlook for nuclear is also
encouraging, and we are investing to re-enter
this market to support our installed base and
capture longer-term opportunities in the small
modular reactor (SMR) segment.
Key takeaways
• Revenues grew 6.1% OCC, with solid
growth in water markets.
• Power markets continued to recover, helped
by gas-related demand.
• Strong growth in the Americas and APAC,
with more subdued performance in EMEA.
• Adjusted operating profit margin decreased
year-on-year, due to mix and investment.
Performance
Divisional revenues grew by 6.1% OCC year-on-year
(reported growth of 4.5%). Growth in water
infrastructure and treatment markets was solid,
supported by continued customer investment in
modernisation, resilience and technology.
Alternative energy delivered good progress,
benefitting from expansion in the solar, wind
and geothermal sectors. Core power markets
also continued torecover, driven by a strong
performance intraditional markets in China and
increased gas-related demand in the Middle
East and theUSA.
Divisional growth rates moderated in the
second half due to a tougher prior year
comparison. However, underlying market
trendsremained good, with power improving.
Division:
Water & Power
£m 2025 2024 Change OCC change
Revenue 202.7 193.9 +4.5% +6.1%
Adjusted operating profit 58.0 56.4 +2.9% +6.0%
Adjusted operating margin 28.6% 29.1% -50bps -10bps
Segment: Target
Sector: Water – desalination
Region: Americas
Water quality concerns, increasing scarcity
and tightening regulation are driving
significant investment across the water
sector, including desalination. In 2025,
wesecured several desalination orders,
including a major project in South America
serving copper mines in Chile. Our deep
process expertise enabled us to fully
understand the customer requirements
andaccelerate commissioning.
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rotork.com Rotork Annual Report 202523
Divisional review continued
Revenue
£777.3m
Adjusted operating profit
£191.5m
Adjusted operating
profit margin
24.6%
Profit before tax
£157.9m
The Group delivered another year of profitable growth, with
higher orders, sales and operating profit, resulting in 10%
organic constant currency (‘OCC’) adjusted operating profit
growth for the year. ROCE increased again in the year to 38.4%,
due to good cash conversion and disciplined capital deployment.
Order intake was £782.6m (2024: £744.3m), up 5.2% from the
prior year or 6.0% on an OCC basis, with all divisions delivering
OCC growth.
Growth+ drives good
order growth, enhanced
margins and accelerated
capital deployment
Ben Peacock
Chief Financial Officer
Group revenue increased 3.7% on an OCC basis
to £777.3m (2024: £754.4m). On a reported
basis, revenues increased 3.0%, impacted by
aforeign exchange translation headwind of
£15.9m. Strong OCC revenue growth in CPI of
7.0% (9.0% reported) and Water & Power of
6.1% (4.5% reported) with modest growth in
Oil & Gas of 0.6% (decline of 1.2% reported).
Within Oil & Gas, good upstream and stable
downstream performance was offset by
customer-driven project delays in midstream
markets at year end.
Strategic report Corporate governance Financial statements
24Rotork Annual Report 2025 rotork.com
Financial review
Adjusted operating profit increased £13.1m,
or7.3%, to £191.5m, with adjusted operating
margin increasing 100bps to 24.6% (2024: 23.6%).
On an OCC basis, adjusted operating margin
increased 140bps. However, adverse foreign
exchange movements of £6.1m equated to a
30bps headwind.
Reported operating profit for the year of
£157.1m was £21.2m ahead of the prior year,
driven by the increase in adjusted operating
profit and non-repeat of a one-time non-cash
IAS 19 settlement of £18.0m related to the UK
defined benefit pension scheme in the prior
year (see note 27). This was offset by an
increase in other adjusting items to £31.4m
(2024: £21.9m) mainly relating to investment
inthe Business Transformation programme
anddisposal-related costs. Further details on
adjusting items are provided in note 5.
Net finance income was £0.8m (2024: £4.6m)
with the decrease driven by reduced interest
income on average cash balances given
increased capital deployed in the year.
Adjusted profit before tax was £192.3m
(2024:£183.0m), driven by the increase in
adjusted operating profit and offset by the
reduction in net finance income. The reported
profit before tax was £157.9m (2024: £140.5m).
The reconciling items between adjusted profit
before tax and reported profit before tax are
shown in note 2.
Adjusted basic earnings per share was 17.0p
(2024: 15.9p), an increase of 6.9%. Reported
basic earnings per share was 13.8p (2024: 12.1p),
an increase of 14.0%.
Acquisition
On 12 March 2025, the Group completed the
acquisition of 100% of the share capital of
Noah for a total purchase consideration of
£37.6m. Initial consideration of £35.6m was
paid on completion, with a further deferred
consideration of £2.0m recognised, with future
payment contingent on certain performance
conditions being met. Including cash acquired
of £3.8m, the total cash outflow for current
year acquisitions was £31.8m plus settlement
ofdebt acquired of £8.0m. Further details
areprovided in note 4.
From the date of acquisition, Noah contributed
£11.2m to revenue and £2.0m to adjusted
operating profit, primarily within the CPI division.
Disposal group held for sale
In the second half of 2025, the Group
commenced a sales process for two non-core
subsidiaries and, in line with IFRS 5 ‘Non-current
Assets Held for Sale and Discontinued Operations’,
the Group has classified the assets and liabilities
of both subsidiaries as held for sale in the
consolidated balance sheet. Further details on
the net assets of £12.2m are disclosed in note 18.
On 4 March 2026, the Group completed the
sale of the disposal group, as disclosed in
note34.
“ In 2025, we delivered growth, expanded
margins, strengthened ROCE, completed
the Noah acquisition and executed £60m
of share buybacks.”
Ben Peacock
Chief Financial Officer
Financial highlights
£m 2024 Exchange Acquisitions OCC 2025 OCC change Change
Orders 744.3 (16.2) 10.6 43.9 782.6 +6.0% +5.2%
Revenue 754.4 (15.9) 11.2 27.6 777.3 +3.7% +3.0%
Adjusted operating profit 178.4 (6.1) 2.0 17.2 191.5 +10.0% +7.3%
Adjusted operating margin 23.6% 24.6% +140bps +100bps
The Financial review includes a mixture of GAAP measures and those which have been derived from our reported results to provide
auseful basis for measuring our operational performance. Details of these alternative performance measures are defined in full and
reconciled to statutory measures in note 2 of the financial statements. Movements in revenue and adjusted operating profit are given
onan organic constant currency basis (see note 2 to the financial statements) so the assessment of performance is not distorted by
acquisitions, disposals and movements in exchange rates. OCC growth rates are calculated as a percentage of the retranslated prior
yearresult.
Results summary
2025 2024 Change
Adjusted profit before tax £192.3m £183.0m +5.1%
Adjusted basic EPS 17.0p 15.9p +6.9%
Reported operating profit £157.1m £135.9m +15.6%
Reported operating margin 20.2% 18.0% +220bps
Reported profit before tax £157.9m £140.5m +12.4%
Reported basic EPS 13.8p 12.1p +14.0%
Cash conversion 101% 119% —
Dividend per share 8.30p 7.75p +7.1%
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rotork.com Rotork Annual Report 202525
Financial review continued
Adjusted items
Adjusted profit measures are presented alongside
statutory results as we believe they provide a
useful comparison of underlying business trends
and performance from one period to the next.
The Group believes alternative performance
measures, which are not considered to be a
substitute for, or superior to, International
Financial Reporting Standards (IFRS) measures,
provide stakeholders with additional helpful
information on the performance of the business.
The alternative profit measures are adjusted to
exclude amortisation of acquired intangibles,
costs related to Business Transformation from
implementing a new ERP system and
integrating business processes, as well as other
significant adjustments. These adjustments are
made to provide stakeholders with additional
information to assess the Group’s trading
performance on a consistent basis. Further
details on adjusted items are provided in note 5.
Adjusted earnings reconciliation
£m
Statutory
results Amortisation
Business
Transformation
costs
Disposal-
related costs
Other
costs
Adjusted
results
Operating profit 157.1 3.0 25.6 3.1 2.7 191.5
Profit before tax 157.9 3.0 25.6 3.1 2.7 192.3
Tax (41.0) (0.5) (6.2) (0.4) (0.5) (48.6)
Profit after tax 116.9 2.5 19.4 2.7 2.2 143.7
The table above shows the adjustments between the statutory results for the significant non-cash and other adjusting items and the
adjusted results. Note 2 sets out the alternative performance measures used by the Group and how these reconcile to the statutory
results. Further details of the adjusted items are provided in note 5.
Currency
The major currencies affecting the consolidated
income statement are the US dollar and the
euro, with the US dollar weakening against
sterling in 2025 and the euro largely flat. The
US dollar/sterling average rate of $1.32 (2024: $1.28)
provided a headwind, whilst the euro/sterling
average rate of €1.17 (2024: €1.18) provided a
slight tailwind. The net impact of these movements
alongside the basket of other currencies was a
£15.9m (2.1%) headwind to revenue and a £6.1m
(3.4%) headwind to adjusted operating profit.
The impact of currency on the Group is both
translational and transactional. Given the locations
in which we operate and the international
nature of our supply chain and sales currencies,
the impact of transaction settlement differences
can be very different from the translation impact.
We can partially mitigate the transaction impact
through matching supply currency with sales
currency, but ultimately, we are net sellers of
both US dollars and euros. It is the net sale of
these currencies which we principally address
through our hedging policy, covering up to 75%
of net trading transactions in the next 12 months
and up to 50% between 12 and 24 months.
Cash generation
Cash generated from operations decreased
9.3% to £193.0m (2024: £212.7m) with the
increase in adjusted operating profit offset
against an increased working capital outflow
tosupport growing revenues and orderbook.
The cash conversion of adjusted operating
profit into operating cash was down
year-on-year at 101% (2024: 119%).
Net cash generated from operating activities
decreased 15.5% to £125.8m (2024: £148.8m),
in line with the cash conversion noted above
and adversely impacted by an increase in the
cash flow impact of adjusting items to £27.8m
(2024: £21.2m) and an increase in income taxes
paid to £39.1m (2024: £38.8m).
Capital expenditure in the year was £9.4m
(2024: £14.0m), excluding £5.0m in capitalised
product development costs (2024: £4.3m) and
£nil in capitalised software (2024: £1.6m).
Capital expenditure in the prior year largely
related to the completion of our new facility in
China which formally opened in November 2024.
Our total Research and Development (R&D) cash
spend was £13.5m which represented 1.7% of
revenue (2024: £13.4m and 1.8% respectively).
As a result, free cash flow (note 2) was an
inflow of £106.8m (2024: £120.0m).
The other major cash outflows in the year
weredividends paid to ordinary shareholders
of£66.6m (2024: £63.3m), share buybacks
of£60.4m (2024: £50.3m) and completion
ofthe Noah acquisition of £31.8m (2024: £nil)
plus settlement of debt acquired of
£8.0m(2024: £nil).
To estimate the impact of currency at the
current exchange rates we consider the effect
of a one cent movement versus sterling. A one
euro cent movement now results in approximately
a £0.3m (2024: £0.3m) adjustment to profit
andfor US dollar, and dollar-related currencies,
a one cent movement equates to approximately
a£0.7m (2024: £0.7m) adjustment.
Return on capital employed (ROCE)
Our asset -light business model and strong
profit margins mean Rotork generates a high
ROCE. The average capital employed increased
4.2% over the year to £498.4m (2024: £478.4m).
As the Group grew revenue and expanded our
adjusted operating profit margins in the year,
ROCE increased 110bps to 38.4% (2024: 37.3%).
Our definition of ROCE is based on adjusted
operating profit as a return on the average net
assets excluding net cash and the pension scheme
asset/liability, net of the related deferred tax.
Taxation
The Group’s effective tax rate increased from
25.4% to 25.9%. Removing the impact of the
adjusted items provides a better indication of
the underlying rate and, on this basis, the adjusted
effective tax rate is 25.3% (2024: 25.2%). The
Group expects its adjusted effective tax rate to
remain higher than the standard UK rate due to
higher rates of tax in China, the US, Germany,
Italy, and India.
The Group’s approach to tax continues to be
tooperate on the basis of full disclosure and
co-operation with all tax authorities and, where
possible, to mitigate the burden of tax within
the local legislation.
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Rotork Annual Report 2025 rotork.com26
Financial review continued
Balance sheet
The Group finished the year with a net cash
position of £65.3m (2024: £125.3m). This
included cash and cash equivalents of £110.0m
(2024: £150.0m), offset by lease liabilities of
£22.7m (2024: £24.7m) and borrowings under
the Group’s revolving credit facility of £22.0m
(2024: £nil). The reduction in net cash can be
attributed to the free cash flow movements
described above, as well as increased
M&A
activity (Noah) and additional share buybacks.
Net working capital in the balance sheet
(including £1.3m of assets held for sale) increased
170bps to 26.8% of revenue (2024: 25.1%),
providing a working capital cash outflow of
£18.3m (2024: inflow of £7.2m) in the year.
Inventory increased by £6.2m to support closing
orderbook and trade receivables days’ sales
outstanding
1
was largely maintained at 58 days
(2024: 56 days).
The Group maintains sufficient liquidity for ongoing
operations including a £75m unsecured
revolving credit facility (‘RCF’), and a closing
cash and cash equivalents balance of £110.0m
(2024: £150.0m). The RCF was extended for two
years in March 2026 from 2027 to 2029.
1 Days’ sales outstanding is calculated on a count-back method.
The sales value including local sales taxes is deducted from the
year-end trade receivables to calculate the number of days
sales outstanding.
Risk update
Geopolitical instability remains at an elevated
level and 2025 brought continued shifts in the
geopolitical landscape. As a global business we
continue to monitor the trade position between
all locations where we are based or have customers
or suppliers and have considered the potential
impact of additional trade barriers between
these countries. Where necessary, we will take
steps to mitigate any such changes but continue
to believe they will not materially impact the
Group’s results. We have included scenarios
inthe Viability assessment on page 67 which
model the impact of these current uncertainties.
Cybersecurity risk continues to evolve, and
weclosely monitor threat intelligence and
investin cyber defences. Actions taken by
management continue to mitigate potentially
more severe outcomes in relation to supply
chain disruption risk. Emerging risks and
opportunities continue to be monitored and
reviewed. Risks and opportunities under review
include those in relation to geopolitical events
and technological, social, environmental, climate
and sustainability risks.
Credit management
The Group’s credit risk is primarily attributable
to trade receivables, with the risk spread over
alarge number of countries and customers,
andno significant concentration of risk.
Creditworthiness checks are undertaken before
entering into contracts or commencing trade
with new customers, and in companies where
insurance cover operates, the authorisation
process works in conjunction with the insurer,
taking advantage of its market intelligence.
Wemaintained coverage of the credit insurance
policy during the year and have cover in place
for virtually all of our companies at an aggregate
of 80% of receivables. Where appropriate,
weuse trade finance instruments such as
lettersof credit to mitigate any identified risk.
Treasury
The Group operates a centralised treasury
function managed by a Treasury Committee,
chaired by me and also comprising the Group
Financial Controller and Group Treasurer. The
Committee meets regularly to consider foreign
currency exposure, control over deposits, funding
requirements and cash management. The Group
Treasurer monitors compliance with the treasury
policies and is responsible for overseeing all the
Group’s banking relationships. A Subsidiary
Treasury Policy restricts the actions subsidiaries
can take, and the Group Treasury Policy and
Terms of Reference define the responsibilities
ofthe Group Treasurer and Treasury Committee.
Where appropriate, the Group uses financial
instruments to hedge significant currency
transactions, principally forward exchange
contracts and swaps. These financial instruments
are used to reduce volatility which might affect
the Group’s cash or income statement. In assessing
the level of cash flows to hedge with forward
exchange contracts, the maximum cover taken
is 75% of net forecast flows. The Board receives
treasury reports which summarise the Group’s
foreign currency hedging position, distribution
of cash balances and any significant changes
tobanking relationships.
Retirement benefits
The Group accounts for post-retirement benefits
in accordance with IAS 19 Employee Benefits.
The balance sheet reflects the net liabilities of
these schemes at 31 December 2025 based on
the market value of the assets at that date, and
the valuation of liabilities using year-end AA
corporate bond yields. We closed both the main
defined benefit pension schemes to new entrants
– the UK scheme in 2003 and the US scheme
in2009 – to reduce the risk of volatility of the
Group’s liabilities. In 2018 we further reduced
the risk of volatility when we completed the
closure to future accrual of both the UK and
USschemes. Members of the defined benefit
schemes were transferred onto the relevant
defined contribution plan operating in their country.
In 2023, the Group made a special contribution
of £20m to the Rotork Pension and Life Assurance
Scheme (UK Scheme). This contribution, together
with some of the existing assets, was used to
purchase a bulk annuity covering the UK scheme’s
existing pensioner liabilities. This was accounted
for as a buy-in. During 2024, the UK Scheme
completed a further bulk annuity with the full
premium amounting to £70m, largely to cover
deferred pensioners. This second bulk annuity
was accounted for as a settlement under IAS 19.
The IAS 19 funding position of the UK and US
schemes reduced from a net deficit of £3.6m
in2024 to a net deficit of £2.3m in 2025.
Theschemes’ assets reduced in value by £1.8m
(2024: decrease of £28.9m) and the schemes’
liabilities decreased by £3.1m (2024: decrease of
£16.1m). The Group paid total contributions of
£0.3m over the year (2024: £4.1m).
Dividends
The Board is proposing a final dividend of 5.35p
per share. When taken together with the 2.95p
interim dividend paid in September 2025, the
full year dividend of 8.30p (2024: 7.75p per
share) represents a 7.1% increase in dividends
over the prior year.
Ben Peacock
Chief Financial Officer
9 March 2026
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rotork.com Rotork Annual Report 202527
Financial review continued