Renishaw PLC (LSE:RSW) shares jumped to a four-year high on Monday after the precision engineer upgraded its guidance for the current financial year after enjoying "particularly strong demand" in key markets.
The FTSE 250-listed group said in a short, unscheduled statement that trading since its half-year results in February has been most robust in semiconductor and electronics manufacturing equipment, alongside aerospace and defence.
This has driven a “substantial expansion” of the order book, it said, supporting higher expectations for the year to June.
Revenue is now expected to come in somewhere between £775 million and £805 million, while adjusted profit before tax is forecast at around £145 million to £165 million.
The update comes just over two months after the company last raised guidance alongside its interim results, when it pointed to accelerating sales growth and strong order intake across regions and divisions.
At that stage, it guided to revenue of £740-780 million and adjusted profit before tax of £132-157 million.
Renishaw said it continues to manage cost pressures linked to economic and geopolitical uncertainty, as well as ongoing supply chain challenges.
A more detailed trading update covering revenue to 31 March 2026 is scheduled for 6 May.
The shares jumped 7% to 4,462p in early trading, up to levels last reached in early 2022.
Broker Peel Hunt said the statement pointed to strength primarily in Renishaw's Position Measurement products, used in semiconductors and electronics manufacturing, where industry data has seen positive trends in recent months.
Analysts at Jefferies said it is "interesting to take a step back...and look at what the new guidance means in terms of financial performance", as the new revenue guidance mid-point is for growth above 10% and implied adjusted PBT margins for the second half are now at 21.4%, in line with medium-term targets.
** UPDATE: Adds share price and broker comment **