Vesuvius (VSVS) H1 2025 earnings summary

Executive summary

• Revenue declined 0.4% on an underlying basis and 3.1% reported, with market share gains in Steel and Foundry nearly offsetting market declines and FX headwinds.

• Trading profit fell 16.1% underlying and 20.7% reported, with return on sales down 160bps to 8.5%, impacted by adverse mix, pricing, and cost inflation.

• Strong cost reduction actions delivered £10.1m in H1, with full-year savings expected at £20m and a target of £55m by 2028.

• Market share gains achieved in both Steel and Foundry, with India showing strong growth and profitability above group average.

• Integration of Piromet/Pyromet progressing well, enhancing robotics and product offering.

Financial highlights

• Revenue: £907.5m, down 0.4% underlying and 3.1% reported year-over-year.

• Trading profit: £77.0m, down 16.1% underlying and 20.7% reported.

• Headline EPS: 17.1p, down 16.4% year-over-year.

• Free cash flow: outflow of £12.6m in H1, expected to turn positive in H2.

• Interim dividend: 7.1p per share, unchanged year-over-year.

Outlook and guidance

• Challenging market conditions expected to persist through H2 2025, especially in Europe.

• H2 2025 performance anticipated to be similar to H1, with pricing actions underway to recover cost inflation.

• Confidence in long-term growth, especially in India, and in ability to improve profitability and free cash flow.

• Free cash flow target of £400m by 2027 reaffirmed.

• 2025 guidance: tax rate 27.5%, depreciation c.£65m, interest cost c.£20m, in-year cost savings c.£20m.