Carclo (LSE:CAR) PLC said full-year expectations remain unchanged as stronger margins and continued aerospace demand offset softer revenue in parts of the business.
The precision engineering group's underlying operating profit and return on sales since 1 April remained in line with management expectations, while margins improved through a combination of product mix, pricing, automation and cost control.
Year-to-date revenue was slightly below the prior year, reflecting the timing of Design and Engineering tooling programmes and a slower first quarter for Manufacturing Solutions volumes in the US.
However, volumes began to recover as the business moved into the second quarter, with Manufacturing Solutions returning to positive year-on-year volume growth.
Carclo (LSE:CAR)'s Speciality division continued to perform strongly, with revenue and margins ahead of last year as robust civil and defence aerospace demand supported growth.
EMEA Manufacturing Solutions also remained strong, particularly in the UK, while US volumes are expected to improve as customer inventory management pressures and slower project releases ease.
Within Life Sciences, parts of the portfolio continued to perform well, although demand from some diagnostics customers remained softer.
Net debt at the end of July was higher than at the 2026 year-end due to lease extensions on US properties and working capital movements. Carclo expects the working capital outflow to reverse by the end of the second quarter.
Chief executive Frank Doorenbosch said: “Precision 2030 is about delivering growth from a disciplined platform, and the base is holding up well: margins, operating profit and return on sales are all ahead of last year on slightly lower revenue, with Speciality growing strongly on Aerospace demand.”
Trading is expected to be weighted towards the second half, with order activity and new programme launches supporting positive organic revenue growth for the full year.
