Senior plc 2025 results: core business delivers while portfolio reset lands
Senior has drawn a clear line under its Aerostructures past and is now firmly a Fluid Conveyance and Thermal Management specialist. On the continuing operations basis (excluding Aerostructures), 2025 was a strong year: revenue grew, margins expanded, cash conversion was excellent and leverage halved.
Do note the company reported an overall statutory loss for the Group due to the Aerostructures disposal on 31 December 2025. That accounting loss does not reflect the trading performance of the go-forward business.
| Key metric (continuing operations) | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue | £738.2m | £707.4m | +4% (+6% constant currency) |
| Adjusted operating profit | £63.6m | £53.0m | +20% |
| Adjusted profit before tax | £51.2m | £42.2m | +21% |
| Adjusted operating margin | 8.6% | 7.5% | +110 bps |
| Adjusted EPS | 9.65p | 8.86p | +9% |
| Free cash flow | £35.8m | £26.1m | +37% |
| Cash conversion (operating cash flow / adjusted op profit) | 90% | 86% | +400 bps |
| ROCE | 13.1% | 11.7% | +140 bps |
| Net debt (ex. leases) | £73.3m | £153.4m | £80m decrease |
| Leverage (net debt to EBITDA) | 0.9x | 1.8x | Improved |
| Total dividend per share | 3.00p | 2.40p | +25% |
What changed with Aerostructures and why it matters
Senior completed the sale of Aerostructures on 31 December 2025 for total estimated consideration of £116.8m, including initial cash proceeds of £95.7m. Customary completion adjustments and contingent consideration are still being finalised in the first half of 2026; a £21.1m receivable is recognised.
The disposal crystallised a reported loss on sale of £42.2m, which, together with discontinued items, led to a Group basic loss per share of 1.02p. Importantly, the business that remains is higher quality: design-rich, margin-accretive and aligned to long-term growth markets. The balance sheet is stronger too, with leverage at 0.9x and ample facility headroom of £220.5m.
Aerospace division: margins take off, order book builds
Aerospace now contributes 58% of Group revenue and had a standout year. Revenue rose 10.4% on a constant currency basis to £426.3m. Adjusted operating profit jumped 32.5% to £48.5m, lifting margins by 190 bps to 11.4%.
- Book-to-bill of 1.21 – more orders than sales is a healthy signal for 2026.
- Drivers: improved pricing, strong growth at Senior Aerospace Spencer (+32%), higher defence volumes, and adjacent markets such as semiconductors.
- Contract wins include Airbus standard parts, a 3-year hydraulic fittings award, a compressor pumps extension, added defence scope, and improved-pricing extensions on thermal insulation components.
- Senior joined the Hydrogen Aircraft Powertrain and Storage System consortium, applying its Fluid Conveyance and Thermal Management know-how to hydrogen propulsion cooling – a useful option on future propulsion architectures.
Opinion: this is exactly what investors wanted to see post-portfolio reshaping – double-digit aerospace margins and a pipeline to sustain them.
Flexonics division: resilient margins despite truck softness
Flexonics delivered a robust result against a tougher backdrop in land vehicles. Revenue was broadly flat at £313.4m (+0.1% constant currency) but margins edged up to 11.2%. Including the China JV, adjusted operating margin was 12.1% as the JV’s profit contribution rose to £3.0m.
- Land vehicle sales rose 1.6% as new programmes ramped, offsetting North American heavy-duty truck weakness.
- Power & Energy sales dipped 2.0% to £125.1m; downstream oil & gas and nuclear were strong, while upstream oil & gas was lower by £0.9m as focus shifted away from commoditised products.
- Restructuring costs of £5.0m were incurred to resize operations, with £4m annualised savings expected from 2026.
Opinion: holding – and slightly improving – margins through an end-market downturn is a good sign the Senior Operating System and portfolio mix are doing their job.
Cash, pension de-risking and dividends: the quality-of-earnings checks
Cash conversion came in at 90%, comfortably above the >85% medium-term target. Free cash flow was £35.8m, aided by disciplined capex and working capital control.
On pensions, the UK Plan completed a buy-in with M&G, materially de-risking future volatility. A one-off £7.3m charge for benefit clarifications was taken as an adjusting item. The UK Plan shows a £23.3m surplus at year-end.
Shareholder returns are stepping up: a proposed final dividend of 2.15p takes the 2025 total to 3.00p, up 25%. A previously flagged £40m buyback is on hold given ongoing discussions with potential offerors (announced 27 February 2026). That is prudent from a governance perspective, though it delays an immediate capital return.
Medium-term targets: are they on track?
- Margins: Group adjusted operating margin rose to 8.6% and is trending toward the “at least double-digit” target. Aerospace at 11.4% is moving toward “at least mid-teens”; Flexonics is within its 10-12% range, and above it when including the JV.
- Cash conversion: 90% exceeds the >85% through-the-cycle target.
- ROCE: up 140 bps to 13.1%, progressing toward the 15-20% goal.
- Leverage: 0.9x sits neatly within the 0.5x-1.5x range, giving flexibility for organic investment and bolt-on M&A.
Opinion: execution is lining up with the strategy. The business mix is cleaner, margins are widening and cash discipline is clear. Hitting mid-teens aerospace margins remains the big value unlock – 2025’s step forward suggests it is achievable.
2026 outlook and the investment take
Trading in the first two months of 2026 has started well and full-year expectations are unchanged. Civil aircraft build rate growth and demand in defence and adjacent markets should drive further progress in Aerospace. Flexonics expects to maintain robust double-digit margins (including the JV) despite softer patches in some end markets.
Positives investors should note
- Book-to-bill of 1.09 at Group level indicates growth headroom into 2026.
- Leverage down to 0.9x and interest cover at 7.0x – balance sheet in good shape.
- CDP Climate A list and Supplier Engagement A list – a genuine commercial differentiator with OEMs.
- Dividend up 25% – confidence signal backed by cash generation.
Watch-fors and risks
- Reported profit before tax fell 9% to £34.1m due to higher interest and adjusting items – headline optics may mask strong underlying progress.
- Flexonics’ end markets, especially North American heavy-duty trucks, remain mixed in the near term.
- Buyback postponed while potential offer discussions continue – an overhang until there is clarity.
- Aerostructures disposal completion accounts and contingent consideration are still to be finalised in H1 2026.
Bottom line
Senior’s reshaped portfolio is doing what it says on the tin: higher margins, better cash and a sturdier balance sheet. Aerospace is the growth engine, Flexonics is defending margins, and capital allocation is disciplined. With the dividend stepping up and 2026 trading in line, the thesis of a cleaner, higher-return Senior is playing out. Clarity on the buyback and any potential offer will be the next catalysts.
