Rotork Aktie

Good morning, everyone. Thank you for joining us today for our first half results presentation. Alongside me is Ben Peacock, our CFO. We're pleased to have the opportunity today to talk through our performance in the period, which will follow our normal format with Q&A at the end of the presentation.

We delivered a robust performance in the first half of 2026. Despite the disruptions seen in oil and gas, the group has continued to deliver growth and margin expansion, supported by the successful execution of our Growth+ strategy. These initiatives are strengthening the quality, resilience and returns of the business whilst positioning us for sustainable long-term growth. I would like to thank all of our colleagues around the world for their dedication, hard work and commitment to our continued improvements. Their efforts have been instrumental in delivering this performance and driving progress across the group.

In the first half, order trends broadly reflected the revenue performance across our divisions with a very strong contribution from CPI, growth in Water and Power and the impact of the Middle East-related disruption affecting oil and gas. Revenues grew and encouragingly, target segments and service continued to perform well with strong growth in both areas, which I'll discuss in more detail on the next slide.

Adjusted operating margins continued to expand, increasing 60 basis points on an OCC basis. We also maintained a peer-leading return on capital employed of 37% despite the mixed operating environment. This performance reflects our stronger exposure to faster-growing target segments, the mission-critical nature of our products, our asset-light business model and our continued focus on cost discipline.

We continue to deploy capital in line with our disciplined allocation framework. We invested organically to support future growth, returned a further GBP 40 million to shareholders through share buybacks and have declared an interim dividend of 3p per share. Safety remains the top priority for everyone at Rotork. We've made good progress on our safety initiatives, and we're pleased with the year-on-year improvement in the first half.

The next slide highlights growth in 2 of our focus areas, target segments and Rotork Service. In the first half, we continued to see good sales growth in our target segment, up 10% OCC. While core markets were weak, especially in energy, we saw good growth in LNG and decarbonization initiatives in oil and gas, including an onshore carbon capture project in the U.K. In CPI, we saw very strong growth in specialty chemicals, marine and critical HVAC with particularly good growth in data centers in the U.S. and Asia due to end market strength and our own strategic initiatives.

In Water & Power, we saw good growth in water infrastructure and treatment markets, including multiple municipal water treatment and irrigation projects in the U.S. We also saw good growth within combined heat and power and combined cycle gas turbine business within the period. Service is another strategic initiative for the business, which saw continued good growth in H1, reaching 24% of group sales. Here, we continue to drive penetration of field and reliability service offerings, helping customers improve asset performance while increasing recurring revenue opportunities.

Before moving on, I'd like to provide a summary of the proposed cash acquisition of Rotork by ABB. This represents an important development for the business, and I'd like to briefly recap the key terms. On the 16th of July, the Board announced that we had reached an agreement on the terms of a recommended cash acquisition by ABB for the entire issued and to be issued ordinary share capital of Rotork. The offer value of 506p per share comprises of 503p per share in cash and the declared interim dividend of 3p per share. This offer value equates to a multiple of approximately 19.5x Rotork's enterprise value to adjusted EBITDA and represents a 73% premium to the undisturbed share price on the 15th of July.

In terms of time lines, the scheme document will be published within 28 days of the original announcement with the acquisition expected to be completed in the first half of 2027 once regulatory approvals have been granted. Until completion of the transaction, it remains business as usual for Rotork with our focus firmly on executing our strategy. With that, I'll hand over to Ben to take you through the financial results in more detail.

Thank you, Kiet, and good morning, everyone. I'm pleased to report our Growth+ strategy continued to underpin strong financial performance in the first half of the year, delivering margin expansion, a high return on capital and additional returns to shareholders. In the following slides, I'll walk you through the highlights of our performance, but please note that the appendix contains additional detail on the 2026 interim results. Furthermore, unless otherwise stated, all figures discussed in this section are on an organic constant currency basis.

If we now turn to the numbers. Orders received were GBP 372 million, a decrease of 4% compared to the prior period. Strong demand in CPI and Water and Power partially offset the impact of Middle East-related disruption in oil and gas. Revenue was GBP 367 million, representing growth of 1.3%. On a reported basis, revenue was flat, reflecting the effect of previously announced disposals and a modest foreign exchange headwind. From a divisional perspective, CPI delivered a very strong performance, achieving mid-teens revenue growth. This was supported by continued growth in Water & Power, which grew low single digits. These gains were partially offset by lower revenues in Oil and Gas, which I'll come back to shortly.

Rotork Service continues to perform well with revenue growth outpacing the wide group. As a result, its contribution to group revenue increased to 24%, up from 23% in the prior year. Adjusted operating profit of GBP 82 million was up 4.1% compared to the prior year. This resulted in an adjusted operating margin of 22.4%, a headline improvement of 40 basis points. Excluding the effects of foreign currency and M&A activity, the operating margin increased by 60 basis points, thanks to operating leverage, disciplined cost management and favorable mix. The increased profitability resulted in adjusted earnings per share of 7.4p, an increase of 4.2% on a reported basis. Cash conversion was 79% in the period, while return on capital remained at a peer-leading 37%. Finally, the declared interim dividend of 3p per share is 1.7% higher than the prior period.

If we now turn to the divisions, starting with Oil and Gas. Divisional sales decreased by 8.4%, largely reflecting the impact of the conflict in the Middle East. From a sector perspective, activity was softer across both upstream and midstream markets during the period, although our target segment initiatives delivered a more resilient performance. Customers continue to exercise capital discipline, while spending patterns and supply chains were disrupted by the ongoing conflict. Encouragingly, downstream markets remain relatively stable year-on-year, supported by our higher service exposure, which helped provide greater resilience in demand.

From a regional perspective, the division grew in the Americas, driven by performance in downstream markets, offset by subdued performance in EMEA and APAC. Adjusted operating profit was GBP 37 million, down 13.8%, reflecting the impact of lower volumes. However, disciplined cost management helped mitigate the reduction in profitability.

Turning now to CPI. CPI delivered a very strong performance in the first half with revenues increasing by 16% year-on-year. Growth was driven by continued momentum across our target segments, particularly in the data center market, where we've seen very high demand. By destination, Americas sales were particularly strong, led by critical HVAC and core process markets. EMEA achieved good growth, supported by performance in HVAC, marine and specialty chemicals, whilst APAC revenues were lower overall. Adjusted operating profit at GBP 28 million was up 24.4%, and adjusted operating margin was up 170 basis points to 24.7%, mainly due to higher volumes.

Moving on to Water & Power. Sales were up 3.4% with good momentum in our target segments of water infrastructure and treatment markets. Order intake remained robust, providing good visibility and supporting expectations for stronger activity in the second half of the year. Despite good growth across gas and alternative energy sectors, power revenues were lower in the period, reflecting a higher prior year comparative and the expected phasing of projects in 2026. Across the regions, APAC delivered the strongest growth. EMEA and the Americas also grew supported by continued investment in water treatment.

Adjusted operating profit for the division was GBP 28 million, representing growth of 15.1%. The adjusted operating margin increased to 28.1%, supported by operating leverage, a favorable product mix and tariff effects. If we now move to the adjusted operating profit bridge. The bridge shows profit growth of 4.1% and a 60 basis points increase in margin versus the prior year, driven by positive operating leverage, disciplined cost management and a favorable product mix. Price increases more than offset salary inflation with limited operating cost growth. The currency headwind to adjusted operating profit was GBP 1.4 million, which reduced the reported margin progression by 20 basis points, whilst the net impact of acquisitions and disposals reduced adjusted operating profit by GBP 0.4 million.

If we now turn to the items below operating profit. Consistent with prior periods, the majority of the adjusting items related to our business transformation program. We incurred a further GBP 15 million in connection with the implementation of the new ERP system and the associated rollout of systems and processes throughout the group. The other significant adjustment items were a GBP 6.9 million gain on disposal of 2 noncore subsidiaries and GBP 1.3 million of public offer-related costs associated with the proposed cash offer by ABB. From a tax perspective, the adjusted effective tax rate was 25.2%, consistent with the prior period. The reported effective tax rate decreased to 23%, primarily reflecting the nontaxable nature of the one-off gains for disposals.

Turning to cash flow. We continue to be cash generative, providing the funding to support organic growth, strategic investment and returns to shareholders. Operating cash conversion was 79% for the period. Capital expenditure and the cash costs associated with our business transformation program were in line with expectations. However, the volatility experienced in oil and gas markets had a temporary impact on working capital, which in turn affected cash conversion during the period. Despite this, we generated positive free cash flow of GBP 22 million. This was achieved while continuing to invest in the future of our business, including total R&D spend of GBP 7.3 million to support new product development and innovation across the group.

If we now move to capital allocation. During the period, we returned significant capital to shareholders, comprising GBP 44 million of dividends and a further GBP 40 million through our previously announced share buyback program. Additionally, the group benefited from a net inflow of GBP 20 million relating to the disposals in the first quarter. As a result, we finished the period with net cash of GBP 25 million. This comprised cash and cash equivalents of GBP 70 million, offset by lease liabilities of GBP 23 million and GBP 22 million of borrowings under the group's revolving credit facility. Overall, our balance sheet remains strong, providing us with strategic and financial flexibility. With that, I will now hand you back to Kiet.

Thanks, Ben. And now turning to the market outlook. Our overall group outlook is unchanged, and we continue to expect further progress on an OCC basis in 2026. In oil and gas, we are expecting a more gradual recovery from the disruption caused by the conflict in the Middle East in H2, consistent with the pace seen at the end of Q2. While full year revenues are now expected to be slightly lower year-on-year, we remain well positioned to benefit from future investment in energy security, infrastructure resilience and supply chain diversification.

In CPI, we now expect a stronger performance for the full year. Our target segment and service strategy continues to support attractive growth opportunities, and we expect continued growth in specialty chemicals, mining, critical HVAC and marine markets with strong demand from data centers in particular. Expectations for Water and Power remain unchanged. Trends in water markets remain good and power markets continue to recover. Order momentum remains strong, providing good support for H2 performance.

Since launching our Growth+ strategy in 2022, we are focused on making a strong business even stronger. By concentrating on faster-growing target segments and enhancing customer and operational performance under the customer value initiatives and extending our product leadership through innovation, we have further improved the quality, balance and growth potential of the business. These strategic actions have enabled us to capitalize on the attractive characteristics of our business model and the structural growth trends of automation and electrification across our markets.

As a result, we have delivered strong growth, particularly in our target segments and service business, high margins close to our mid-20s ambition and increased our return on capital to 37% in the first half of the year. At the same time, we have continued to invest for the future and sharpened our strategic focus. We have accelerated new product launches, strengthened our commercial teams and made good progress on our ERP program to support our ability to scale in the future. We have also completed two strategically important acquisitions, expanding our capabilities and opening up new growth opportunities.

Our balance sheet remains strong, giving us the flexibility to invest in the business, pursue strategic opportunities and continue returning excess capital to shareholders. One of the achievements I'm most proud of is our world-class safety performance. This reflects the culture we have built together and the commitment of our people across the group.

I would like to thank all of our employees for their contribution to the group's success. I'm pleased with the performance of the business given the disruptions we have seen in energy markets. In previous cycles, these issues would have had a much bigger effect. The outstanding performance from CPI, in particular, highlights the benefits of the changes we have made under Growth+ and the greater balance we have built into the group.

Looking ahead, we expect to deliver further progress on an OCC basis in 2026. Our end markets remain attractive. The actions we have taken give us confidence in our ambition to deliver mid- to high single-digit revenue growth and adjusted operating margins in the mid-20s over time. Thank you for your interest today. Bill and I would be very happy to take your questions whilst recognizing that we are still in an offer period. And when discussing the prospective acquisition of Rotork, we can only comment on what is already in the public domain. Thank you, and we'll now open the floor to questions.

[Operator Instructions] Our first question today comes from Stephan Klepp from BNP Paribas Exane.

I just have one question, if I may. Could you describe me a little bit what's going on in oil and gas markets, what you can see there at the moment? You obviously talked about the weakness. You talked about gradual improvement. But can you give us some more color on what's happening in upstream, midstream, downstream, please?

Yes, sure. If I give you the kind of breadth of the division across the relevant regions and split into what you've asked for. In terms of the U.S. or the Americas, we saw growth in the Americas, and that growth came in downstream across the Americas, and it also came in Latam across up, mid and downstream. In EMEA, we did see a decline, and that is related to the Middle East conflict. And then in Asia Pac, we also saw a small decline in the downstream business due to what I would call the more secondary derivatives of a supply issue. So India and China were experienced feedstock shortages due to the conflict in the Middle East.

LNG continues to be very strong within the division. So that's the basic ethos of oil and gas. In terms of the Middle East, what we saw in Q2 were things improving as the quarter went on. And if you take the 3-month rolling average for orders from April to June, we did see a month-on-month improvement in the rolling orders going up. So that gives us the confidence in the H2 that things are improving.

Our next question this morning comes from Tom Elgar from Deutsche Numis.

Just firstly, on the CPI performance, obviously very, very strong. Can you unpack really what has happened in the first half in terms of the data center performance? And you talked about in the release some notable wins. Did this exceed your expectations in terms of what you were able to convert? Or is this the overall pull of the market kind of underlying accelerating? So I guess if you could sort of talk about the commercial momentum of the business? Are these one-offs, partnerships, et cetera? How should we think about it?

So CPI knocked out of the park in the first half as we had expected. I mean the team has done a fantastic job over the last few years building the foundations of the target segments. And the target segments performed extremely well in the first half. Critical HVAC was the standout. So critical HVAC doubled in the half. It's now around 6% of group revenues. That was aided by data centers. So the data center business within the critical HVAC applications doubled as well.

However, if you take that out, critical HVAC minus data centers almost nearly doubled in its sales. So it wasn't just all down to data centers. So the team are performing really well. The market conditions are good, but they're executing exceptionally well to maximize the market conditions. In terms of the data center business, we're very pleased. It has exceeded our expectations. Hence, we expect and in our outlook, have said that CPI will be better than our original expectations. The team are running hard to win new business.

We've done very well outside of liquid cooling, but we have won a number of projects inside the server room with liquid cooling. The Handby and the NOA products through the acquisitions that we've made over the last few years have been instrumental to this growth. So very pleased with how things are going within the data center business, but also within CPI in general.

So just a follow-up on the power side as well. Can you sort of touch on the project exposure and I guess, how we might think about kind of the continuing sort of underlying market growth within there? Obviously, the fundamentals of that business are positive for reasons that we're all aware of. So just trying to work out the dynamics of those 2 things there.

Yes. So within our power business, we've got the traditional power, but we've also got the gas-related power to deal with combined heat and cycle -- combined heat and power applications and combined cycle gas turbine applications. Unfortunately, we're under offer, so we can't give too much color on that. Our expectations for water and power are unchanged for the full year. But as a market dynamic, we are expecting good growth in that area. The markets are strong, and we're doing a lot of work in that to capitalize on that.

[Operator Instructions] We have no further questions this morning. So this concludes the Q&A session. And I would now like to hand back to Kiet for any further closing remarks.

Yes. So first of all, thank you, everyone, for your interest today. In conclusion, I'm really pleased with the resilience that we've shown in the first half. Our strategic focus areas are delivering, and we continue to focus and execute well on them. And our margins are up again in the first half of this year. So with that, thank you very much for your interest, and I wish everyone a good day. Thank you.

Good morning, everyone. Thank you for joining us today for our 2025 full year results presentation. Alongside me is Ben Peacock, our CFO. We're pleased to have the opportunity to walk you through our performance for the year and we will follow our normal format with time for Q&A at the end.

I'm pleased with the progress made in 2025 as we continue to execute on the Growth+ strategy and would like to thank all our staff at Rotork. Growth+ continues to deliver because of their hard work, dedication and commitment. I'd also like to take a moment to acknowledge our staff and their families in the Middle East given the current conflict in the region. Our priority has been their safety, and I'm pleased to say all are safe and well, and we will continue to monitor the ongoing developments closely.

Moving now to the key financial highlights. Order growth of 6% on an OCC basis was particularly pleasing with each division driving mid-single-digit OCC growth despite mixed end markets. Sales grew 3.7% OCC. And when including the contribution of Noah, this increases to 5.3% on a constant currency basis. CPI had a very strong second half with target segment revenues accelerating, while Oil & Gas saw some customer-driven project delays at the end of the year, which we'll talk about in later slides.

Adjusted operating profits were very encouraging, up 100 basis points year-on-year to 24.6%. Margins were helped by mix and operational efficiencies. Combined with sales growth, this resulted in a 10% OCC adjusted operating profit growth for the full year. Return on capital employed remained at a high level at 38.4%, helped by margins and disciplined capital deployment. Our balance sheet remains strong and cash conversion was good. As expected, net cash ended the year lower, reflecting the GBP 40 million acquisition of Noah and the GBP 60 million of share buybacks. As part of our focus, our ongoing strategic priorities and capital allocation, today, we have announced 2 small noncore disposals for GBP 24 million, which we will talk about in later slides.

Safety performance was broadly in line with 2024, and we continue to make good progress on our safety initiatives as well as employee health and well-being. We're also making strong progress on our sustainability agenda and have achieved our Scope 1 and 2 emissions targets ahead of plan. Sustainability remains central to our strategy, and we have now raised our 2030 ambition to a 60% reduction in Scope 1 and 2 emissions versus our 2020 baseline.

This slide highlights the key strategic initiatives driving growth ahead of our end markets, target segments and Rotork Service. In 2025, we continue to see good sales growth in our target segments, up 8% OCC. Highlights included strong growth in upstream electrification, allowing us to outperform a weaker underlying market and good growth in LNG. In CPI, we outgrew subdued core markets with good performance across the main target segments, including specialty chemicals, critical HVAC, marine and mining.

Water & Power continues to perform well with good growth in the water infrastructure and treatment markets as well as the alternative energy markets. Service is another strategic growth area for Rotork, which delivered continued good momentum and now represents 24% of group sales. Here, we are expanding our product offering and increasing wallet share with existing customers. During the period, we saw particularly strong growth in Europe, the Middle East and the U.S. Overall, I'm proud of our performance in 2025. Continued strategic momentum across all divisions, but particularly in CPI and Water & Power led us to outperform mixed underlying end markets and helped offset the customer-driven project delays seen in Oil & Gas at the end of the year.

Now over to Ben, who will take you through the financial details.

Thank you, Kiet, and good morning, everyone. I'm pleased to report that Growth+ delivered another year of good order growth and margin progression, together with continued high return on capital and return to shareholders. In the following slides, I'll walk you through the highlights of our performance, but please note that the appendix contains some more specific details on our 2025 full year results.

If we now turn to the numbers. Orders received at GBP 783 million were up 6% versus prior year on an organic constant currency or OCC basis, with all divisions delivering growth. Revenue at GBP 777 million is 3.7% higher than prior year on an OCC basis and 3% ahead on a reported basis, impacted by a foreign exchange translation headwind of GBP 15.9 million. From a divisional perspective, both CPI and Water & Power performed strongly with mid- to high single-digit revenue growth on an OCC basis. This was offset by Oil & Gas, which saw some customer-driven project delays at the end of the year. We are pleased with the integration of Noah, which contributed GBP 11.2 million of the revenue in the period. Rotork Service performed well with revenue continuing to grow faster than the group and its contribution to group sales increased to 24% versus 23% in the prior year.

Adjusted operating profit of GBP 191.5 million is 10% higher versus prior year on an OCC basis and margins at 24.6% were up 140 basis points. Including the foreign currency headwind of GBP 6.1 million, reported operating margins are up 100 basis points. The group continues to be cash generative with cash conversion at 101%. This is down from prior year, reflecting increased working capital due to delivery phasing in the second half, and we closed the period with net cash of GBP 65 million. Our increased profitability resulted in adjusted earnings per share of 17p, which is an increase of 6.9% on a reported basis and our high return on capital increased further to 38.4%. Finally, the proposed full year dividend of 8.3p per share is 7.1% higher than the prior year.

If we now turn to the divisions and starting with Oil & Gas, divisional sales grew 0.6% on an OCC basis with good target segment growth, particularly in upstream electrification and LNG. From a sector perspective, despite challenging underlying market conditions, upstream revenues grew supported by strong electrification-related revenues. Despite good growth in LNG, midstream revenues were softer in the second half, impacted by customer-driven project deferrals at the end of the year. Downstream markets were stable year-on-year, supported by service and brownfield-related activity. From a regional perspective, the division experienced strong growth in EMEA, offset by subdued performance in the Americas and APAC. Adjusted operating profit at GBP 97.6 million was up 9.1% on an OCC basis. The 220 basis points adjusted operating margin improvement reflects strong target segment sales growth, a favorable product mix and operational efficiencies.

Turning to CPI. Revenues were 7% higher year-on-year on an OCC basis, with underlying momentum improving as the year progressed. On a reported basis, Noah made a good first contribution post acquisition, adding 4% to divisional sales in the period. By destination, Americas sales were particularly strong with good growth in the U.S., Mexico, Chile and Brazil. EMEA and APAC both saw modest growth. Adjusted operating profit of GBP 58.2 million was up 9.9% on an OCC basis, with adjusted operating margins up 70 basis points to 26.1% on higher volumes.

Moving to Water & Power. Sales were up 6.1% on an OCC basis, with both sectors growing strongly, but consistent with half year, Power growing slightly faster than Water. In target segments, we saw solid growth in water infrastructure and wastewater treatment. The Americas and APAC both delivered strong growth in the year with EMEA performance more muted, particularly in the second half. Adjusted operating profit for the division was GBP 58 million. Excluding foreign exchange headwinds, adjusted operating profit was up 6% on an OCC basis. Consistent with the position at half year, despite higher volumes, mix effects and higher investment resulted in adjusted operating margins being slightly lower at 28.6%.

If we now move to the adjusted operating profit bridge. This bridge shows solid profit growth of 10% OCC versus prior year, driven by increased organic revenues and positive operating leverage. Price increases more than offset salary inflation and following increased investment in 2024 to support the Growth+ strategy, current period OpEx investments have been more limited. Reflecting our operating leverage and mix, adjusted operating margins grew 140 basis points to 24.6% on an OCC basis. The currency headwind to adjusted operating profit of GBP 6.1 million I mentioned earlier, reduced the reported margin progression by 30 basis points.

If we now turn to the items below operating profit. Similar to last year, the majority of the adjusted items relate to our business transformation program. A further GBP 25.6 million was incurred in implementing a new ERP system and the associated systems and processes throughout the group. This is slightly lower than our previous guidance of GBP 30 million for the full year. The program remains on track and the total program cost unchanged, but we have adjusted phasing between 2025 and 2026. Additional adjusted items include GBP 3.1 million of disposal and restructuring-related costs for the divestment of 2 noncore businesses. Other costs include GBP 1.5 million of acquisition and integration costs for Noah and GBP 1 million for a new facility in Changshu, China, which in total are GBP 0.6 million incremental to the half year reported results.

Finally, tax. The reported effective tax rate has increased 50 basis points, while the adjusted effective tax rate at 25.3% has increased 10 basis points on last year.

Turning to cash flow. We continue to be cash generative, providing the funding for organic growth, strategic investments and returns to shareholders. Operating cash conversion for the period was 101% with working capital to sales of 26.8%. We made good progress on our initiatives on payables, but saw an outflow in receivables due to sales phasing at the end of the year. Positive free cash flow of GBP 106.8 million is down on the prior year, reflecting the working capital investment and higher business transformation costs versus prior year. Free cash flow also includes overall R&D spend of GBP 13.5 million as we continue to invest in new product development.

If we now move to capital allocation. During the year, we returned to shareholders dividends of GBP 67 million and GBP 60 million in relation to the previously announced share buybacks. Additionally, we completed the acquisition of Noah for GBP 40 million, bringing total capital deployed to approximately GBP 167 million. In relation to Noah, the group has also recorded GBP 2 million of contingent consideration during future years, bringing the total cost of the acquisition to GBP 42 million. We finished the year with GBP 65 million, comprising total cash and cash equivalents of GBP 110 million, lease liabilities of GBP 23 million and GBP 22 million of borrowings under the group's GBP 75 million revolving credit facility. The group's balance sheet continues to remain strong and provide us with strategic and financial flexibility.

And finally, on guidance for 2026. Based on current exchange rates, we currently estimate a neutral year-on-year impact to sales from FX. We expect full year capital expenditure of GBP 15 million and investment in our business transformation program of GBP 25 million, reflecting the change in phasing between 2025 and 2026. In summary, the balance sheet and cash generation of the business continue to give us strategic and financial flexibility for 2026, and we expect further progress on an OCC basis, which Kiet will now cover in more detail.

Thanks, Ben. In this section, I'd like to update you on how we are advancing the Growth+ strategy, provide an update on capital allocation and finish with our outlook.

We launched the Growth+ strategy in 2022 and with performance now at all-time highs, we're seeing the clear impact of the work done over the past 4 years. OCC order intake growth has consistently been above 6%, driven by strong momentum in our target segments and the expansion of Rotork Service. Revenues are at record levels with an 8% compound annual growth rate since launch and good growth across all 3 divisions. Operating margins have continued to strengthen, and we don't see mid-20s as our ceiling in the medium to long term. Over the past 4 years, positive operating leverage, improving mix with a shift towards electric actuators and operational efficiencies have more than offset increased investment in the business, delivering a 230 basis points improvement in adjusted operating profit margins. Cash conversion has remained consistently high and return on capital employed has increased strongly despite bolt-on M&A, reflecting disciplined capital management and margin progression. At the same time, we've accelerated capital deployment, combining targeted acquisitions, share buybacks and a progressive dividend policy.

Turning on to the next slide. Our Growth+ strategy is set up to leverage Rotork's attractive business model and the structural tailwinds in our industry. Combined, we believe they will drive our long-term performance, helping us to grow ahead of our end markets and to achieve our financial ambitions of mid- to high single-digit revenue growth and mid-20s adjusted operating margins over time. The Growth+ strategy itself consists of 3 pillars. Target Segments is focused on identifying key markets in each division with structural tailwinds that offer significant profitable growth opportunities. Customer Value are initiatives aimed at strengthening our internal processes to deliver an industry-leading customer experience. And Innovative Products & Service centers on extending our competitive advantage and capturing new product opportunities.

Our strategy is underpinned by our highly attractive business model and strong balance sheet. We have leading technology in key markets with products that are embedded in critical applications. Our differentiated route to market is built around end user requirements and a deep understanding of their processes. Combined with our lean manufacturing setup, this creates a strong business model that delivers high margins and strong returns. The Growth+ strategy also capitalizes on the structural trends within our end markets. Automation continues to be a significant growth driver as customers upgrade existing systems and automate new projects to enhance performance, efficiency and reliability. Only 1/4 of industrial valves are estimated to be currently automated, providing a long-term tailwind to growth.

Electrification remains a broad industry trend with electric actuators typically providing more precise control and lower total cost of ownership. Electric actuators now represent around 55% of our sales and have steadily grown in our mix, positioning us well to benefit from this shift. Digitalization is another key tailwind, giving customers real-time insights into asset performance, helping them to make the right decisions earlier to optimize performance and efficiencies whilst protecting against unplanned downtime. We have a long track record here, having offered connected products since 1986.

This slide highlights some of the enhancements we've made under the hood since introducing Growth+ to strengthen delivery and resilience in the business. Following the organizational shift from product to end markets, there has been substantial change within Rotork to maximize the opportunities across the group. We have increased commercial investment by close to 60% across sales, strategy and business development, which has enabled the target segment growth. Alongside this and to maximize potential, we invested in enhanced leadership training as well as strengthening our go-to-market approach. These changes have helped meaningfully increase our Net Promoter Score to ensure a consistently strong customer experience, a key differentiator in gaining market share and accessing new markets and customers.

In addition, our product initiatives have gained momentum. New product development has accelerated with a greater emphasis on voice of customer insights and continued success in expanding both connected and service offerings. We are seeing good growth in new product launches, and it's encouraging to see the success of our digital service offerings, including iAM revenues up 40% in 2025. Whilst investing to deliver sustained growth, these investments have been funded through ongoing operational efficiency and disciplined cost management across the business, enabling us to reinvest while increasing profitability. All of these initiatives have made a tangible difference across the business. With stronger capabilities and clearer focus, we are well set to build on this momentum and continue our growth journey to deliver our mid- to high single-digit revenue growth over time.

This slide dives deeper into CPI and highlights the division's performance, which has benefited from the initiatives previously mentioned. Since launching Growth+, CPI's average growth has been 9% with 2025 delivering 7% OCC growth, driven by strong momentum in its target segments, particularly in the second half. Despite industry forecast pointing to double-digit falls in areas such as chemicals, the division has continued to grow. This reflects its focus on 4 end markets where automation, electrification and digitalization are meaningful tailwinds. We see a GBP 1 billion serviceable addressable market for our main CPI target segments, providing us an attractive runway for future growth.

From a low base, we have grown very strongly in marine markets, supported by increasing electrification of valve control on ships as well as the adoption of sustainable fuels in both new build and retrofit markets, also requiring the use of electric actuators. Critical HVAC has been another standout area, delivering growth well ahead of its underlying markets. Here, we have successfully taken our high-end premium electric products into new mission-critical applications, supported by electrification tailwinds in sectors such as semiconductor, data centers and battery production. The broader chemicals environment has been challenging, but we've grown in specialty chemicals due to success in automation and digitalization upgrade projects, offsetting the recent pressure in the bulk chemicals market.

Mining has appeared volatile due to large nickel mining projects in 2023, which were not repeated in 2024 due to an oversupply in the market. However, we've seen considerable success in this end market with a focus on automation and digitalization opportunities in copper, gold and other critical minerals markets in local processing applications. Overall, CPI's performance highlights the benefits of the changes made under Growth+, a more focused commercial approach, a clearer emphasis on target segments and a strong alignment with long-term structural growth drivers.

Turning to the next slide. We are excited about the data center opportunity within CPI, which is in the critical HVAC target segment. Our current exposure is mainly in the primary cooling circuit outside of the server room. While revenues today are still relatively small, they are growing quickly, doubling in 2025. We see attractive medium-term potential as automation and electrification drive higher adoption of our products across the roughly 1,000 valves in the primary HVAC circuit outside the server room. We currently sell electric actuators and gear products into this part of the market, and our portfolio is well suited, especially with the addition of Noah to the increasing need for precision, reliability and efficiency.

As the market shifts towards liquid-based cooling inside the server room, we see additional opportunities in this high-growth segment. Fluid control in these systems is mission-critical for thermal efficiency, and we believe our Noah and Hanbay products are well positioned given their accuracy, reliability, size and speed compared to existing solutions. Having been on test with a number of customers in January, we secured a number of production orders for applications in CDUs and the technology cooling systems inside the server room with encouraging feedback. These wins reinforce our confidence in the long-term potential for this market, and we see opportunities in other parts of the data center for our products.

Turning to the next slide. In the Water & Power division, we see near-term opportunities in our traditional power markets and longer-term opportunities in nuclear. We generate just under 10% of revenues from global power markets. Around 2.5% of this goes into alternative energy, which is mainly renewables. The remaining is in traditional power generation, including combined cycle gas turbines. Our power business has a high exposure to Asia and low exposure to the Americas. After experiencing declines through to 2024, our power business returned to mid- to high single-digit revenue growth in 2025, supported by improving demand in the U.S., the Middle East and APAC. Looking ahead, we expect the market to continue to recover as rising electricity demand drives investment in the installed base.

Nuclear is within our alternative energy target segment. We have a long track record in this market and have invested to reestablish our supply chains and capacity to reenter the market. In the near term, we expect refurbishment-related demand to be the main driver and see a potential total actuator spend of circa GBP 3 million per reactor refurbishment project. Longer term, small modular reactors represent a significant opportunity given the high number of valves and the criticality of the application. The potential actuator spend per reactor is around GBP 10 million. We are already laying the groundwork to participate in this market as it develops, although we don't expect this to turn into orders until the 2030s. Taken together, we see nuclear as a sizable long-term opportunity for Rotork with the total greenfield nuclear actuator market expected to be worth GBP 5 billion between now and 2050.

Oil & Gas had a slower end of year as we saw some customer-driven project delays in midstream markets. However, target segment initiatives continued to deliver good growth in the year. Upstream electrification continues to grow strongly as operators look to improve process control, reduce emissions and lower total cost of ownership. Broader upstream markets were weak in the year with our own core upstream revenues and broader industry statistics pointing to double-digit declines. In midstream markets, we saw good growth in LNG and have a supportive book-to-bill, while broader midstream trends were more challenging due to the customer delays mentioned. Downstream markets were relatively stable in 2025. Here, we focus on Rotork Service to provide predictive maintenance, upgrade and efficiency projects in brownfield markets.

Following on from Ben's comments on the balance sheet, this slide provides an update on capital allocation. Our priorities remain unchanged, investing organically in the business to support our leadership in intelligent flow control, maintaining a progressive dividend, pursuing value-creating M&A and returning excess capital to shareholders. We made good progress in the year. And as shown on the previous slide, we have continued to increase the amount of capital deployed. We acquired Noah in March and are pleased with the integration and early performance. We completed our initial GBP 50 million buyback in October and subsequently announced another buyback at the Q3 trading update, reinforcing our commitment to achieving a net neutral balance sheet in the absence of M&A.

Alongside today's results, we've also announced the disposal of 2 noncore businesses to support a clearer focus on our strategic priorities for a combined total of GBP 24 million with sales of GBP 15 million in 2025. Looking ahead, our preference is to deploy capital into M&A. However, we remain focused on strategic and financial discipline. And given the nature of the typical bolt-on opportunities we target, it makes the timing difficult to predict. As a result, we will continue to use share buybacks to achieve a net neutral balance sheet position on an ongoing basis.

At year-end, we had GBP 40 million remaining of the current buyback, which we expect to complete by the end of the first half. As Ben highlighted, our balance sheet remains strong and the underlying cash generation of the business means there is scope to continue to do both bolt-ons and buybacks. As we said at the half year, we currently don't see this as an either/or decision.

Turning now to the market outlook. Our commentary here does not consider the potential direct and indirect impacts related to recent events in the Middle East. The region as a whole is around 10% of sales for Rotork, and we are carefully monitoring the evolving situation. However, it is too early to provide an update. For the group, in 2026, we expect continued momentum in our target segments and in Rotork Service, while underlying end markets are anticipated to be mixed. At the divisional level, in Oil & Gas, we expect a stable performance with a higher H2 weighting. Our target segment and Rotork Service initiatives continue to ensure we outperform the wider Oil & Gas markets, where downstream markets are expected to remain stable and upstream and midstream are anticipated to remain subdued.

For CPI, we see continued growth momentum. CPI builds on the structural trends of automation, electrification and digitalization and remains focused on driving target segment growth in specialty chemicals, mining, critical HVAC and marine markets, whilst broader process markets are likely to remain subdued. The outlook for Water & Power is also good. Global investment in water infrastructure continues to grow, supported by rising water scarcity, climate change and aging infrastructure. Modernization and resilience programs are driving activity across most markets, and we expect this demand to remain robust. In Power, we expect to see continued recovery in end markets.

In summary, I'm pleased with the progress advancing the Growth+ strategy in 2025. Growth+ has driven strong performance in the year with good order growth, 140 basis points OCC increase in margins and a 10% increase in adjusted operating profit. Our strategic initiatives are driving growth above underlying end market trends. Target segment growth was 8% OCC with good performance in areas such as upstream electrification and specialty chemicals, where underlying markets have seen double-digit declines. Rotork Service is now 24% of group sales as we continue to drive increased wallet share and broaden our product offering.

The Growth+ strategy is delivering strong financial performance. It's leveraging our attractive business model and structural tailwinds in our markets. There have been significant changes to the business since the introduction of Growth+, driving performance and resilience with CPI and Water & Power seeing good growth from the strategic initiatives, offsetting customer-driven project delays in midstream Oil & Gas markets and resulting in good profit growth in the year. CPI has also been a clear example of the benefits delivering growth despite subdued end markets and offering exciting opportunities such as in data centers.

Return on capital employed increased in the year to 38.4%, and we accelerated capital deployment with the acquisition of Noah and 2 buyback programs announced. We expect the remaining buyback to complete by the end of the first half. And given our financial strength and strong cash generation, we currently see the combination of bolt-on M&A and buybacks as sustainable. Looking ahead, we expect target segments and service to continue to drive performance in mixed end markets. While we are mindful of the recent geopolitical uncertainty, we expect to see further progress in 2026.

Thank you for your interest today. We'll now open the floor to Q&A.

[Operator Instructions] Our first question this morning comes from Andrew Douglas at Jefferies.

Three questions, please, if I may. Can we start with Target Segments? It looks like that's grown nicely. I think it was 8%, again, outperforming the core underlying markets. Can you just walk through areas that are kind of maybe underperforming relative to your kind of previous guidance? It looks like everything is going well on Target Segments. I just want to make sure that I'm not missing anything or maybe I am missing nothing and everything is going well. So just give me an update on Target Segments. And has there been any change versus the Capital Markets Day of '21? Have any of those target market opportunities dropped out or have any kind of moved in?

The second question is on M&A and the pipeline. I guess, could you just walk through kind of things that you're seeing. And I know that you walked away from a few deals last year. I'm assuming that was largely a price thing? Or was it kind of a quality of assets thing?

And then finally, the third question is more of a kind of an operational question. I just want to make sure from an energy cost perspective, raw material perspective, supply chains that we're not expecting anything untoward this year. I know you guys don't have heavy manufacturing, so energy shouldn't be a problem. But I just want to make sure the things like energy, costs and raw materials and supply chains aren't a problem.

Yes. Andy, I got all of those. So let's start with the first question. Yes, Target Segments performed really strongly, 8% OCC, really good to see, fantastic work from the team back at base. Actually, all end markets performed well. And you can see in the presentation today, the CPI main target segments, you've got specialty chems, which actually helped to outgrow a very weak chemicals market. So we saw growth overall. You've got the marine markets, mining and critical HVAC, they've all performed well. And you can see, actually over the 4 years, they have performed extremely well.

So going to your second part of that question, nothing's changed in terms of the end markets since the Capital Markets Day. The only thing that's changed is they've got a lot bigger within the CPI segment. Within Water & Power, water, really good structural growth drivers down to water scarcity, water quality. So that keeps on going through. As we've announced, we've also reinvested to reenter the nuclear market. So that should be a good near-term opportunity for us. And as I said in the presentation, we've got the near-term opportunities with our large installed base and then the longer-term opportunities in SMR.

And then in Oil & Gas, we've got the upstream electrification, which is working extremely well. And actually, we grew upstream on the whole in 2025 when there was a market that was actually in decline. So that shows really strong growth in upstream electrification. LNG has also grown well. I guess the 1 or 2 that haven't grown as well as what we had thought from the original were the carbon capture, hydrogen markets, the alternative energies. But actually, the majority have grown really, really well. So we're really pleased with that. So that's the first question.

Second question, in terms of the pipeline, we've got a really good pipeline. We're really happy with our pipeline. However, we do need to stay financially disciplined. And yes, we have walked away from a number of deals in 2025. That's all down to price. In terms of the quality of the assets that we're looking at, we are a quality business, and therefore, the assets that we go after are top of their game in terms of the technology that they have. But unfortunately, in some of those cases, the prices were too high, and we walked away. What we want to be able to do and what we have got in the pipeline are more private owned businesses like Hanbay, like Noah, where we're looking to cultivate the relationships and then do bilateral deals, which actually gives good financial return. So that's where we're looking. But that is an area where Ben and I spend a lot of our time. So that's high on the agenda.

And then lastly, in terms of the operation, as you know, we're an asset-light company. So all of our manufacturing is assembly and test. So our energy usage is actually quite low. So we don't see any issues there. And in terms of raw material prices, we haven't seen any increases. However, as you also know, we've got really strong pricing power. So whatever material increases that we do see, we are quite effective at passing that through.

The next question this morning comes from Lush Mahendrarajah at JPMorgan.

I've got two, if that's okay. The first is on just Oil & Gas and some of the delays you've seen in midstream. I guess, should we be thinking about some of that coming in, in 2026? Because I guess just sort of comparing to the guidance, which also sounds maybe a bit softer. I guess what are you seeing? Is it sort of just push out? Or are you seeing some hesitation? And do you think some of that is related to the Middle East or is it independent? And then I guess, how -- tied to that how is your thinking about what's happening in the Middle East could play out? I know it's early days, but do you sort of see a similar situation to maybe sort of post Russia-Ukraine?

And then the second question is just on Oil & Gas margins. The really strong, particularly in the second half despite that slower volume growth. I mean, is there anything to think about in there in terms of mix or operational efficiency that you've done? And I guess, how should we think about that into 2026 as well?

Thanks, Lush. I'll take the first question. I'll hand over to Ben for the second. If I start with the Middle East in terms of the first question, look, it's a little bit too soon to predict what's going to happen in the Middle East. So our outlook doesn't include the Middle East. At the moment, our first priority has been our people. We've got 70 people in the Middle East. I'm pleased to say all of our 70 staff and their families are safe and well. We are in regular contact with them every single day to understand what's happening on the ground. So we monitor the situation really closely. But as I said, at the moment, it's a little too soon to tell.

Look, we're mindful though that there could be some short-term disruptions in supply chains, for example. And then longer term, as you said, look, if this lasts for a longer time, I think people's attention will turn to energy security. And what we've seen in the past is if demand is there and supply is choked from one region, investment does go into other regions to satisfy that demand. But that's all potential at the minute. No one really knows how long this is going to go on for. So at the minute, it's a little bit too early to tell.

In terms of the wider Oil & Gas markets for us, yes, we saw some project or customer-driven project delays late in December. So for example, we had 2 projects that were circa GBP 6 million. We were ready to ship and our customers have just asked us to postpone them because their projects had been delayed. Those are looking to convert into the first half of this year. However, we do see that those deferrals are a symptom of a weaker market, especially in upstream and the midstream. We've done incredibly well actually with our target segment strategy to actually outperform the weaker underlying markets. And as I said to Andy, we actually grew in the upstream despite having weak markets. In the midstream, LNG has grown strongly, but it wasn't enough in '25 to offset the late on deferrals. So we see conditions going through to '26, which is why we're saying Oil & Gas is stable. But we're confident in our target segment strategy. We're confident in Rotork Service that we can outperform those markets.

Ben, do you want to cover the margin?

Just on the margins for Oil & Gas, very consistent with what we said at H1. There was a big mix benefit in terms of electric coming through. Also, we had good Rotork service in Oil & Gas, which helps. And then operational efficiencies, again, we're always trying to get more volume out of our operational footprint. And again, we did some good work around that. In terms of margins, just from a group perspective going into 2026, I think you just need to assume sort of normal operating leverage coming through on the volumes, which is around 30% to 40% drop-through.

The next question this morning comes from Harry Philips at Peel Hunt.

We will continue with Stephan Klepp from BNP Paribas Exane.

I have actually two. And let's start with Water & Power, please. So if you look at first half to second half, there was a deceleration in organic growth. And I would like to unpick that a little bit or you to unpick it for us because Water should have been very strong, and it was very strong historically in the last 2 years. If I now assume that Power is coming back and look at some of your growth rates of your competitors, this is a pretty disappointing print. So I just rather want to understand, is it a timing issue? Or is it a structural issue? Because I mean, I see a long-term opportunity, but I don't understand why it's not coming through right now. And the -- what is it, 4% growth you showed in H2, just a bit low, isn't it?

And then on organic -- sorry, on Oil & Gas again, sorry for nagging you there, but there was a deceleration in execution in organic. All the good things you say about your target strategy, innovation and obviously, after service, I totally get that. But I'm rather interested in the long-term picture of what's happening in your clients? Is it the oil side not performing? Is it the gas side not performing? Is it the mood of the industry? Have the -- was it an overinvestment? Or why is the growth not coming through anymore? Because that is obviously a factor that we have seen as a disappointment in H1 and obviously, it's not great today.

Stephan, thanks for the questions. Let me try and unpick some of this and Ben, you chip in when it's right. So I think the number one is Rotork, in the way we do business, we're not really a run rate business. So you can't really look from quarter-to-quarter and look at the run rates because you also have to look at the orders. So actually in Water & Power, Q4 orders were really strong and Power grew really strongly. So the Q4 orders were strong, meaning that's why we're saying the outlook into '26 is good. And overall, for the full year in 2026, we're expecting good Water & Power growth. So it really does depend on the comps. And so H2 had tougher comps, and therefore, it appears that the growth is slower. However, if you look at it in the whole over the year, Water & Power did deliver good growth.

Do you want to add anything to that?

Yes. I'll just build on Kiet. So I think if you look at the order profile of the group, I mean, in the first half, we grew 6%, and that was across all of the divisions. When we did our IMS, the 4 months trading period, again, we grew 6%, and it was strong across all divisions. We started to see some acceleration in CPI. And then in the final 2 months, you really start to see CPI and Water & Power take off. So again, I think if you look at overall 6% growth in revenue year-over-year, I think it's good. And obviously, we had a good first half. So I think overall, for the full year, we feel really good. And like Kiet said, I think given the acceleration in orders we got towards the final 2 months, we feel good about FY '26 as well.

So that's the Water & Power piece. I guess the Oil & Gas piece, again, same kind of context. It's not really a run rate business. And what we are seeing our customer projects taking longer than expected. There's been a lot of investment into the oil and gas industry. So some of these projects haven't come through or are not coming through as quickly as anticipated by our customers. And therefore, you see some deferrals or some pausing of projects coming through. But we talk to our customers regularly. We know what's in the pipeline. So we anticipate projects coming through into first and second half of next year. So that's really the dynamics.

Underlyingly, though, upstream has been quite weak. Midstream has also been quite weak. But I think that for Rotork, we are a far, far more resilient business. And so in the past, we may not have been able to post the numbers or keep things flat. But with our target segment strategy and with Rotork Service, we have been able to outperform these underlying weaker markets.

Yes. But still, my detailed question was more or less, is it oil or is it gas? So if you can give color on that, that would be great.

So obviously, the upstream is more oil, but it's really a mixture of oil and gas because a lot of the projects, they are, let's say, taking a bit longer, and there is a mixture of oil and gas in there, but it's probably skewed more towards the oil piece. LNG also grew really strongly. So that piece of it did come through and grew well.

The next question this morning comes from Mark Fielding at Royal Bank of Canada.

A couple of follow-ups, actually, really, in terms of things that you've already touched on. Firstly, can we talk about the strength in CPI that obviously, Ben was just talking about the second half, very good momentum. I suppose your market -- your end market comments still sound relatively subdued there, and it's more about you driving through your project wins, et cetera. I suppose just some sense of -- you're looking for a good year, but the visibility around that in the context of you're still thinking those markets are subdued probably. And does that just bring a bit more lumpiness? I mean it was a much bigger growth in the second half than the first. Is there any timing factors to think about on that CPI side of things?

And then could I just follow up a little bit more detail on LNG. You mentioned it a couple of times, particularly in the Q&A and the strength in it, but maybe just a little bit more detail about how you see the -- well, pipeline isn't quite the right word for LNG is it, you know what I mean there. But how you see the sort of outlook? And maybe just how big is -- give us some sense of how big LNG is in the group now? And maybe how does that compare to when it was previously very strong like 12, 13 years ago? Just is it a much bigger business now or not?

Yes, good questions. If I start on the CPI one, the general -- we all know the general chemical market is down. Bulk chem, petrochem has been a tough market. But we are playing and we have focused on what we call specialty chem. So low batch run, specific chemicals in kind of photovoltaic materials for solar panels, critical kind of ingredients for specialty plastics and things like that. So those sectors are still doing really, really well. And it's a testament to the Target Segments strategy. And so the team are focused on those types of processes where you do need critical control, really high-end products. And we've been able to drive that segment, whereby the critical chems or the specialty chems have outgrown a very weak underlying chemicals market. And that's the testament to the Target Segments strategy.

In terms of process, process markets, again, have not been great, but we have really focused on critical HVAC and included in that is our data center work that whilst small, has doubled last year. So that adds towards the growth. You've got marine and you've got mining. And you can see on the slide this morning from where they started 4 years ago, they've actually grown quite phenomenally. So they're of a size now where the momentum and the growth within those segments can carry through and outweigh weaker underlying markets. And that was the whole ethos of our Growth+ strategy and the Target Segments strategy.

You will have lumpiness in a way. And as I said, we're not a run rate business. You can't really run rate month-on-month or quarter-on-quarter. But if you take the year as a whole, you can have a look at the trends, and the trends have been positive. So that's CPI. And then LNG, I think LNG was quite big for us before. It went down to very, very low, and it's getting there. I think it will be bigger than what it was 13 years ago at its high, but it's still coming through. It's grown really, really strongly, and it continues to grow.

And can you just clarify on the LNG bit? What are your lead times? How far ahead are you seeing stuff? Because obviously, some of your sort of peers on the valve side can sort of got orders in for the next few years. But it's still the case that for you, it's coming in a bit later, but you can sort of see it in discussions.

Yes, absolutely. So we measure our pipeline, and it takes 4 to 5 years to get an LNG plant up and running. And so we will typically lag our customers, which are the valve makers by around 6 to 9 months, just given the lead times of our products. So it's actually quite a good leading indicator for our valve maker customers. If they're seeing the orders, we will expect those 6 to 9 months later.

We have time for one last question this morning, which comes from Thomas Elgar at Deutsche Numis.

Just one for me. Could we dig a little bit more into Rotork Service? Just how has the growth evolved through the year? Where do you see 2026, being better or perhaps weaker within service? Obviously, the overall upgrade push across your markets is pretty clear. Just trying to get a sense of where you are most excited within service? And I guess also maybe extending that, perhaps if you could guide to the rough size of the service now within Oil & Gas within that, please?

Yes. If I answer some of these, Ben can fill you in on some of the specific numbers. But look, we're really excited about service. It's a brilliant initiative for us within the business, and it gives real good resilience to our business. The key things in the service for us are we're really pushing our digitalization. So iAM, while still relatively small, grew 40% last year. So we are providing our customers more data, more useful data in terms of what the actuator and valve packages are doing so that we can better help them with their predictive maintenance and planned shutdowns. And that's something that has been a real good driver over the last 18 months. With that, we are trying to drive more business through more predictive maintenance and more service contracts. So they're the key kind of growth elements of Rotork Service. We obviously have a really good installed base and it's a resilient business. But the way we measure service is spare parts and labor. So it's very pure in that way. Service is now around 24% of group revenues. Again, it's grown ahead of the group. And what we want to do is keep focusing on it to grow ahead of the group.

So in terms of growth rates, this year, it grew sort of mid- to high single digits in the year. I think the way we think about Rotork Service is, well, I think from a margin progression perspective as well, as we move to more electric and as our customers move to more electric, we get more pull-through on Rotork Service, which is also accretive to group margins. So Rotork Service is a big catalyst as you think about margin progression going forward as well.

This concludes the Q&A session, and I would now like to hand back to Kiet for any closing remarks.

Yes. Thank you very much. So first of all, thank you, everyone, for your interest in Rotork today. In conclusion, we've had another good year, and I'm really pleased with the progress made in 2025. Our Growth+ initiatives are working. The Target Segments and Rotork Service are really delivering good growth and helping us to outperform weaker underlying markets. In the year, we delivered good order growth, strong margin progression and a 10% increase in adjusted operating profit. So we're really pleased with that. On a capital allocation point, that's accelerated during the year, and we look forward to having considerable financial flexibility to pursue opportunities for value-creative opportunities for our shareholder.

So with that, thank you very much for your interest today. Have a good day, everyone.