Vesuvius (VSVS) H1 2025 TU earnings summary

Executive summary

• Trading profit for H1 2025 is anticipated to be around GBP 77 million, consistent with expectations despite challenging market conditions and subdued global industrial activity.

• Short-term and structural cost reduction actions have supported profitability, with recurring cash cost savings target of GBP 45 million for 2028 now expected to be exceeded.

• Market conditions remain difficult, with uncertainty and weak demand persisting in both end markets; recovery is now expected to be postponed to 2026.

Financial highlights

• Revenue for H1 2025 is just over GBP 900 million, with an 8.5% return on sales (GBP 77 million trading profit).

• Full-year revenue is expected to be around GBP 1.85 billion, with margins remaining stable.

• Headline tax rate remains at 27.5%.

Outlook and guidance

• H2 2025 performance is expected to be broadly similar to H1, with further improvement postponed to 2026.

• Market recovery is now anticipated in 2026, with cost reduction measures expected to deliver full-year effects then.

• Pricing is expected to improve in H2, but volume will be slightly lower due to seasonality.

• Challenging market conditions and subdued industrial activity expected to persist through 2025.