The Weir Group (WEIR) H2 2025 earnings summary

Executive summary

• Achieved 6% year-over-year revenue growth and 15% increase in operating profit, with sector-leading operating margins of 20.2% and strong cash conversion at 92%, driven by robust aftermarket demand, order execution, and acquisitions.

• Advanced growth strategy through self-funded acquisitions (Micromine, Townley, Fast2Mine, ESEL Chile), digital expansion, geographic footprint growth, and product innovation.

• Delivered a 31% reduction in absolute CO₂ emissions since 2019, ahead of 2030 targets and aligning with sustainability goals.

• Full year dividend increased by 4% to 41.7p.

Financial highlights

• Orders increased 7% to £2.6bn, with aftermarket orders up 8% and original equipment orders stable year-over-year.

• Revenue rose 6% to £2.6bn, with aftermarket revenue up 8% and original equipment revenue up 2%.

• Operating profit grew 15% to £518m; operating margin expanded by 150bps to 20.2%.

• EPS increased 3% to 123.8p per share; full-year dividend up 4% to 41.7p.

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

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

Outlook and guidance

• 2026 guidance anticipates further revenue and operating profit growth, with 50bps margin expansion and mid-single-digit growth in aftermarket revenue.

• CapEx and lease spend projected at 1.3x depreciation, with continued investment in foundries and SAP S/4 implementation.

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

• Effective tax rate expected at 28%; net interest costs to be £90m.

• Deleveraging targeted, aiming for net debt/EBITDA of 0.5x-1.5x by end of 2026.