Bodycote
Website:
Bodycote
Index:
FTSE 250
EPIC: BOY
Supersector:
Industrial Goods and Services
Sector:
Industrial Engineering
Subsector:
Industrial Machinery
Market Cap:
£1.17B
Payout Frequency: Semi-Annual
Bodycote Dividend Analysis and Summary
Headline dividend details
- Final dividend: 16.1p per share (unchanged year-on-year)
- Interim dividend: 6.9p per share (paid 6 Nov 2025)
- Total FY2025 ordinary dividend: 23.0p per share (flat vs FY2024)
- Ex-dividend date: 30/04/2026 (derived: record date is 01/05/2026)
- Record date: 01/05/2026
- Payment date: 11/06/2026 (subject to AGM approval on 27/05/2026)
- Dividend policy: target cover of =2.0x earnings on a “normalised” multi-year basis; 38-year record of growing or maintaining the dividend
Coverage and cash flow support
- Adjusted EPS (FY2025): 44.4p ? cover on total DPS 23.0p is ~1.9x
- Statutory EPS (FY2025): 31.0p ? cover ~1.35x
- Free cash flow (FY2025): £47.5m vs cash dividends paid £40.9m ? FCF cover ~1.2x
- Balance sheet: net debt/EBITDA ~0.6x; net debt ex-leases £104.8m, indicating capacity to support distributions
Capital allocation and structural changes
- New share buyback of £80m announced (expected completion by end-2027); £57.6m repurchased in 2025; total since 2024 now £120m
- Portfolio reshaping: disposal of 10 non-core French sites (Nov 2025); ongoing site closures/consolidations under “Optimise” (target =£15m run-rate benefits by mid-2027)
- Growth investment: elevated £77m capex in 2025; bolt-on A&D acquisition (Spectrum Thermal Processing, Jan 2026)
- Financing: RCF maturity extended to 19 Sept 2030; year-end 2025 committed headroom £156.2m
- De-risking: UK pension scheme buy-in completed (Dec 2025), reducing future balance sheet volatility
Assessment: sustainability and trajectory
- The dividend is maintained at 23.0p despite lower adjusted profit and weaker cash conversion; cover is adequate on adjusted earnings (~1.9x) but below the 2.0x policy level this year, implying limited near-term growth.
- Management expects margin improvement in 2026 and continued strength in A&D/IGT; execution of Optimise/Perform should widen cover and support a progressive policy over the medium term.
- Balance sheet strength and ongoing buybacks signal confidence, but elevated capex and restructuring outflows temper immediate headroom for dividend increases.
Risks and flags to dividend stability
- End-market mix headwinds: sharp decline in high-margin Oil & Gas; Automotive/Industrial softness weighed on margins; recovery timing is macro-dependent.
- Cash conversion fell to 78%; FCF cover only ~1.2x with continuing Optimise cash costs and planned growth capex—this could constrain near-term dividend growth.
- Execution risk: dividend cover improvement relies on delivering Optimise savings and mix upgrades; sensitivity analysis suggests parts of the portfolio (AGI/ST) rely on achieving planned benefits.
- Tax rate expected to trend higher; geopolitical uncertainty persists.
Read more
Bodycote Annual Dividend Yield - 3.41%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 24/04/2025 |
05/06/2025 |
Final |
16.10p |
GBX |
| 02/10/2025 |
06/11/2025 |
Interim |
6.90p |
GBX |
Total (Annual Dividends Per Share):
23.00p
Dividend Yield =
Annual Dividends Per Share (23.00p)
÷ Share Price (674.5p)
= 3.41%
Bodycote Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 30/04/2026 |
11/06/2026 |
Final |
16.1000p |
GBX |
| 02/10/2025 |
06/11/2025 |
Interim |
6.90p |
GBX |
| 24/04/2025 |
05/06/2025 |
Final |
16.10p |
GBX |
| 03/10/2024 |
07/11/2024 |
Interim |
6.90p |
GBX |
| 25/04/2024 |
06/06/2024 |
Final |
16.00p |
GBX |
| 05/10/2023 |
10/11/2023 |
Interim |
6.70p |
GBX |
| 20/04/2023 |
02/06/2023 |
Final |
14.90p |
GBX |
| 06/10/2022 |
04/11/2022 |
Interim |
6.40p |
GBX |
| 21/04/2022 |
03/06/2022 |
Final |
13.80p |
GBX |
| 21/04/2022 |
01/06/2022 |
Final |
13.80p |
GBX |
| 07/10/2021 |
05/11/2021 |
Interim |
6.20p |
GBX |
| 22/04/2021 |
04/06/2021 |
Final |
13.40p |
GBX |
| 07/01/2021 |
12/02/2021 |
2nd Interim |
6.00p |
GBX |
| 27/08/2020 |
25/09/2020 |
Final |
13.30p |
GBX |
| 27/08/2020 |
25/09/2020 |
Interim |
13.30p |
GBX |
| 23/04/2020 |
05/06/2020 |
Final |
14.00p |
GBX |
| 10/10/2019 |
08/11/2019 |
Interim |
6.00p |
GBX |
| 18/04/2019 |
07/06/2019 |
Special |
20.0p |
GBX |
| 18/04/2019 |
07/06/2019 |
Final |
13.30p |
GBX |
| 04/10/2018 |
02/11/2018 |
Interim |
5.70p |
GBX |
| 19/04/2018 |
01/06/2018 |
Special |
25.00p |
GBX |
| 19/04/2018 |
01/06/2018 |
Final |
12.10p |
GBX |
| 05/10/2017 |
03/11/2017 |
Interim |
5.30p |
GBX |
| 20/04/2017 |
02/06/2017 |
Final |
10.80p |
GBX |
| 06/10/2016 |
04/11/2016 |
Interim |
5.00p |
GBX |
| 21/04/2016 |
03/06/2016 |
Special |
10.00p |
GBX |
| 21/04/2016 |
03/06/2016 |
Final |
10.30p |
GBX |
| 01/10/2015 |
06/11/2015 |
Interim |
4.80p |
GBX |
| 26/03/2015 |
01/05/2015 |
Special |
20.00p |
GBX |
| 26/03/2015 |
01/05/2015 |
Final |
9.80p |
GBX |
| 01/10/2014 |
07/11/2014 |
Interim |
4.60p |
GBX |
| 09/04/2014 |
02/05/2014 |
Special |
10.00p |
GBX |
| 09/04/2014 |
02/05/2014 |
Final |
9.10p |
GBX |
| 02/10/2013 |
07/11/2013 |
Interim |
4.40p |
GBX |
| 10/04/2013 |
07/05/2013 |
Final |
8.30p |
GBX |
| 03/10/2012 |
07/11/2012 |
Interim |
4.00p |
GBX |
| 04/04/2012 |
04/05/2012 |
Final |
7.30p |
GBX |
| 05/10/2011 |
04/11/2011 |
Interim |
3.60p |
GBX |
| 06/04/2011 |
06/05/2011 |
Final |
5.75p |
GBX |
| 06/10/2010 |
05/11/2010 |
Interim |
2.95p |
GBX |
| 07/04/2010 |
07/05/2010 |
Final |
5.35p |
GBX |
| 02/12/2009 |
06/01/2010 |
Interim |
2.95p |
GBX |
| 01/04/2009 |
08/05/2009 |
Final |
5.35p |
GBX |
| 26/11/2008 |
06/01/2009 |
Interim |
2.95p |
GBX |
| 04/06/2008 |
04/07/2008 |
Final |
5.25p |
GBX |
| 28/11/2007 |
04/01/2008 |
Interim |
2.75p |
GBX |
| 06/06/2007 |
05/07/2007 |
Final |
4.50p |
GBX |
| 29/11/2006 |
05/01/2007 |
Interim |
2.50p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
6.900 |
16.000 |
|
GBX |
22.900 |
6.010 |
| 2023 |
6.700 |
14.900 |
|
GBX |
21.600 |
-36.470 |
| 2022 |
6.400 |
27.600 |
|
GBX |
34.000 |
32.810 |
| 2021 |
6.200 |
13.400 |
|
GBX |
25.600 |
-36.940 |
| 2020 |
13.300 |
27.300 |
|
GBX |
40.600 |
3.300 |
| 2019 |
6.000 |
13.300 |
20.000 |
GBX |
39.300 |
-8.170 |
| 2018 |
5.700 |
12.100 |
25.000 |
GBX |
42.800 |
165.830 |
| 2017 |
5.300 |
10.800 |
|
GBX |
16.100 |
-36.360 |
| 2016 |
5.000 |
10.300 |
10.000 |
GBX |
25.300 |
2.010 |
| 2015 |
4.800 |
|
20.000 |
GBX |
24.800 |
-25.970 |
| 2014 |
4.600 |
18.900 |
10.000 |
GBX |
33.500 |
163.770 |
| 2013 |
4.400 |
8.300 |
|
GBX |
12.700 |
12.380 |
| 2012 |
4.000 |
7.300 |
|
GBX |
11.300 |
20.850 |
| 2011 |
3.600 |
5.750 |
|
GBX |
9.350 |
12.650 |
| 2010 |
2.950 |
5.350 |
|
GBX |
8.300 |
0.000 |
| 2009 |
2.950 |
5.350 |
|
GBX |
8.300 |
1.210 |
| 2008 |
2.950 |
5.250 |
|
GBX |
8.200 |
13.100 |
| 2007 |
2.750 |
4.500 |
|
GBX |
7.250 |
190.000 |
| 2006 |
2.500 |
|
|
GBX |
2.500 |
|
Bodycote Dividend Calculator
Bodycote Dividend Growth
| Dividend Growth (1Y) |
–
|
| Dividend CAGR (5Y) |
-6.8%
|
| Years of Growth |
3
|
| Payout Ratio |
74.32%
|
| Buyback Yield |
5.17%
|
| Shareholder Yield |
8.5%
|
| P/E Ratio (TTM) | 22.05 |
|---|
| Forward P/E | 14.04 |
|---|
| P/FCF | 17.45 |
|---|
| Earnings Yield | 4.69% |
|---|
| FCF Yield | 5.73% |
|---|
| ROE | 8.45% |
|---|
| ROCE | 11.93% |
|---|
| Profit Margin | 7.55% |
|---|
| Operating Margin | 14.26% |
|---|
| Gross Margin | 13.77% |
|---|