Vesuvius (VSVS) H2 2024 earnings summary

Executive summary

• Full-year 2024 results met expectations despite weaker steel and foundry markets, with underlying revenue down 1.8% and trading profit at £188 million, supported by cost reductions and self-help measures.

• Return on sales improved to 10.3%, and headline EPS increased 2.1% to 43.3p.

• Market share gains in Flow Control and Foundry partially offset significant market declines.

• Strong operational performance, cost savings, and disciplined cash management supported resilience.

• Record safety performance with LTIFR of 0.52 and a 27% reduction in CO₂e emissions intensity since 2019.

Financial highlights

• Underlying revenue declined 1.8% year-over-year; trading profit was £188 million, down 0.2%.

• Return on sales improved by 10 basis points to 10.3%; steel division return on sales rose 110 basis points to 11.4%.

• Net debt to EBITDA remained at 1.3x, despite high CapEx, increased dividend, and share buybacks.

• EPS increased 2.1% on a constant currency basis to £0.433; dividend per share up 2.2% to 23.5p.

• Working capital intensity reduced to 22.9%, with a target of 21% by 2026.

Outlook and guidance

• Trading profit for 2025 expected to be broadly similar to 2024, including Piromet acquisition contribution.

• Cash flow for 2025 projected to be significantly ahead of 2024, driven by working capital focus and normalized CapEx.

• Midterm targets: return on sales of at least 12.5% by 2028 and cumulative £400 million free cash flow by 2027.

• Guidance assumes stable net pricing and includes a £10–15 million contingency for tariff impacts.

• Cost-saving programme extended to £45 million by 2028.