The Weir Group (WEIR) H1 2025 earnings summary

Executive summary

• Achieved strong H1 2025 performance with 4% revenue growth and 17% operating profit growth, driven by robust mining demand, strategic acquisitions (Micromine, Townley, CiDRA), and successful execution of transformation initiatives.

• Upgraded full-year operating profit margin guidance to circa 20%, reflecting margin expansion from operational excellence, leverage, and contributions from acquisitions.

• Maintained strong free operating cash conversion and continued dividend growth, with interim dividend up 9% to 19.6p per share.

• Performance Excellence programme delivered £40m cumulative savings, targeting £80m by 2026.

Financial highlights

• Orders increased 8% to £1.3bn; revenue grew 4% to £1.2bn; operating profit rose 17% to £237m; operating margin expanded 220bps to 19.8%.

• Profit before tax rose 10% to £213m; statutory profit after tax at £113m (+10% YoY); adjusted EPS 58.7p (+10% YoY).

• Free operating cash conversion at 62%; ROCE at 17.7%.

• Net debt to EBITDA at 2.0x post-acquisitions; net debt increased to £1,213m, expected to delever by year-end.

• Interim dividend of 19.6p per share (+9% YoY), in line with policy to distribute one third of adjusted EPS.

Outlook and guidance

• Upgraded full-year operating profit margin guidance to circa 20%; revenue guidance reiterated, with mid single-digit organic growth expected.

• Free operating cash conversion expected between 90%-100% for the full year.

• CapEx and lease spend expected at around £110m; exceptional cash outflow of £40m for transformation and integration.

• Translational FX headwind of £100m on revenue and £22m on operating profit for FY 2025.

• Confident in delivering sustainable operating margins above 20% from 2026.