Rotork

Website: Rotork
Index: FTSE 250
EPIC: ROR
Supersector: Industrial Goods and Services
Sector: Electronic and Electrical Equipment
Subsector: Electronic Equipment
Market Cap: £2.53B
Payout Frequency: Semi-Annual

Rotork Dividend Analysis and Summary

Headline Dividend Details

Proposed final dividend: 5.35p per share (FY25 total: 8.30p, up +7.1% YoY).
Ex-dividend date: 23/04/2026.
Record date: 24/04/2026.
Payment date: 02/06/2026 (subject to AGM approval on 01/05/2026).
DRIP: Available via Equiniti; last election date 11/05/2026.
Dividend cover: ~2.0x on adjusted EPS (17.0p) and ~1.7x on reported EPS (13.8p). Payout ratio ~49% (adjusted EPS basis) / ~60% (reported EPS basis).
Cash support: FY25 free cash flow £106.8m vs ordinary dividends paid £66.6m (FCF payout ~62%); year-end net cash £65.3m.

Context and Timetable Notes

Financial calendar confirms: 23/04/2026 ex-div, 24/04/2026 record date, 02/06/2026 payment.
Policy: “Progressive dividend” reaffirmed; ordinary dividends of £66.6m returned in 2025 alongside substantial buybacks.

Dividend Sustainability and Growth

Growth: FY25 DPS increased +7.1%, consistent with a progressive policy. Share count reduction from buybacks supports per-share growth.
Earnings/cover: Adjusted EPS rose to 17.0p (+6.9%), keeping adjusted cover around 2.0x. Reported cover ~1.7x also acceptable.
Cash generation: Cash conversion 101%; FCF of £106.8m more than covered dividends (£66.6m). ROCE strong at 38.4%.
Balance sheet/capacity: Net cash position and extended RCF to 2029 provide flexibility to fund dividends, buybacks and M&A.
Outlook support: Management expects further OCC progress in 2026; Rotork Service (24% of sales) and Target Segments provide resilience, supporting ongoing dividend growth.

Financial Performance and Capital Allocation Support

Operating performance: Revenue +3.7% OCC; adjusted operating margin expanded +140 bps OCC to 24.6% (24.6% reported +100 bps).
Capital allocation: Clear hierarchy—organic investment, progressive dividend, targeted M&A, then additional returns. FY25 buybacks of £60.4m; remaining programme to complete in H1 2026.
M&A/portfolio: Acquisition of Noah adds to electric actuators; two non-core disposals completed on 04/03/2026. Portfolio focus supports efficient cash deployment and dividend funding.

Structural/Policy Changes Relevant to Dividends

Share buybacks: £50m (completed) + follow-on £50m announced; continuing into H1 2026. Reduced average share count (846.4m to 828.8m) is supportive for DPS and cover.
M&A and disposals: Noah acquisition (March 2025) performing well; sale of two non-core subsidiaries (completed March 2026) sharpens focus—neutral to supportive for future cash generation.
RCF extension to 2029 enhances liquidity headroom for maintaining policy through cycles.

Risks and Flags to Dividend Stability

End-market mix: Midstream Oil & Gas project delays and subdued upstream/midstream expected; 2026 performance more H2-weighted—near-term earnings timing risk.
Ongoing transformation costs: Business Transformation (ERP) to continue over next two years with £35–40m additional costs (adjusting, but with cash impact), a potential drag on FCF if working capital tightens.
Working capital/cash: Net working capital rose to 26.8% of revenue; careful management needed to sustain high cash conversion.
FX and macro/geopolitics: 2025 FX was a headwind; geopolitical uncertainty noted—could affect orders and margins.
Tax/finance income: Effective tax rate 25.9%; lower net finance income as cash deployed—marginally reduces earnings cover.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
24/04/2025	03/06/2025	Final	5.00p	GBX
14/08/2025	22/09/2025	Interim	2.95p	GBX

Total (Annual Dividends Per Share): 7.95p

Dividend Yield = Annual Dividends Per Share (7.95p) ÷ Share Price (316p) = 2.52%

Ex Dividend Date	Payment Date	Type	Amount	Currency
23/04/2026	02/06/2026	Final	5.3500p	GBX
14/08/2025	22/09/2025	Interim	2.95p	GBX
24/04/2025	03/06/2025	Final	5.00p	GBX
15/08/2024	23/09/2024	Interim	2.75p	GBX
18/04/2024	24/05/2024	Final	4.65p	GBX
17/08/2023	22/09/2023	Interim	2.55p	GBX
13/04/2023	19/05/2023	Final	4.30p	GBX
18/08/2022	23/09/2022	Interim	2.40p	GBX
07/04/2022	20/05/2022	Final	4.05p	GBX
19/08/2021	24/09/2021	Interim	2.35p	GBX
08/04/2021	21/05/2021	Final	6.30p	GBX
20/08/2020	25/09/2020	Interim	3.90p	GBX
09/04/2020	22/05/2020	Final	3.90p	GBX
29/08/2019	27/09/2019	Interim	2.30p	GBX
28/08/2019	27/09/2019	Interim	2.30p	GBX
11/04/2019	22/05/2019	Final	3.70p	GBX
23/08/2018	21/09/2018	Interim	2.20p	GBX
05/04/2018	23/05/2018	Final	3.35p	GBX
24/08/2017	22/09/2017	Interim	2.05p	GBX
06/04/2017	15/05/2017	Final	3.15p	GBX
25/08/2016	23/09/2016	Interim	1.95p	GBX
07/04/2016	16/05/2016	Final	3.10p	GBX
27/08/2015	25/09/2015	Interim	1.95p	GBX
09/04/2015	18/05/2015	Final	30.90p	GBX
27/08/2014	26/09/2014	Interim	19.20p	GBX
09/04/2014	19/05/2014	Final	30.00p	GBX
28/08/2013	27/09/2013	Interim	18.05p	GBX

Year	Interim	Final	Currency	Total	Change
2024	2.750	4.650	GBX	7.400	8.020
2023	2.550	4.300	GBX	6.850	6.200
2022	2.400	4.050	GBX	6.450	-25.430
2021	2.350	6.300	GBX	8.650	10.890
2020	3.900	3.900	GBX	7.800	-6.020
2019	4.600	3.700	GBX	8.300	49.540
2018	2.200	3.350	GBX	5.550	6.730
2017	2.050	3.150	GBX	5.200	2.970
2016	1.950	3.100	GBX	5.050	-84.620
2015	1.950	30.900	GBX	32.850	-33.230
2014	19.200	30.000	GBX	49.200	172.570
2013	18.050		GBX	18.050

Number of Shares:

Payment	Paid	Amount
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