The Weir Group (WEIR) H2 2025 earnings summary

Executive summary

• Delivered 6% year-over-year revenue growth to £2.6 billion and 15% operating profit increase to £518 million, achieving a 20.2% operating margin a year ahead of target, with strong cash conversion at 92%.

• Achieved 7% order growth, driven by high aftermarket demand, strategic acquisitions, and stable original equipment orders.

• Advanced growth strategy through digital expansion, geographic investments, and product extensions, including acquisitions of Micromine, Townley, Fast2Mine, and full ownership of ESEL in Chile.

• Reduced Scope 1 & 2 emissions by 31% from 2019 baseline, ahead of 2030 target.

• Upgraded Performance Excellence savings target to £90 million, with cumulative savings of £59 million to date.

Financial highlights

• Revenue increased 6% year-over-year to £2.6 billion; operating profit rose 15% to £518 million; operating margin expanded by 150bps to 20.2%.

• EPS up 3% to 123.8p per share; profit before tax increased 4% to £447 million.

• Free operating cash conversion at 92%, within 90%-100% target range.

• Full-year dividend increased 4% to 41.7 pence per share.

• Net debt to EBITDA at 1.9x after acquisitions; return on capital employed at 17.9%.

Outlook and guidance

• Expecting another year of revenue and operating profit growth in 2026, with 50bps of margin expansion.

• Guidance for mid-single-digit growth in aftermarket revenue and continued strong growth in software businesses.

• CapEx and lease spend expected at 1.3x depreciation; effective tax rate to remain at 28%.

• Free operating cash conversion expected between 90%-100%; working capital to normalize toward 20% of sales.

• Net interest costs projected at approximately £90 million in 2026; deleveraging targeted, aiming for net debt/EBITDA of 0.5x-1.5x by end of 2026.