Vesuvius (VSVS) H2 2025 earnings summary

Executive summary

• Revenue grew 0.7% like-for-like to £1,809.5m, driven by market share gains despite declines in steel and foundry markets, especially in EMEA.

• Trading profit declined 17% like-for-like to £151.1m, mainly due to negative net pricing, mix in H1, and EMEA weakness, partially offset by cost savings and improved pricing in H2.

• Adjusted/headline EPS fell 17.7% like-for-like to 34.2p; return on sales decreased by 170bps to 8.4%.

• Net debt to EBITDA rose to 2x pro forma, reflecting acquisitions, CapEx, and share buybacks, but remains within target range.

• Board proposed a final dividend of GBX 16.5 per share, total GBX 23.6, up 0.4% year-over-year.

Financial highlights

• Revenue for 2025 was GBP 1.82 billion; underlying revenue GBP 1.775 billion after currency adjustment.

• Like-for-like revenue increased 0.6% despite a 0.8% market decline.

• Trading profit was GBP 178.3 million, with a return on sales of 10%.

• Free cash flow was £36.0m; CapEx reduced by £15m year-over-year, improving cash flow conversion to 75%.

• Working capital remained flat at £390.5m at year-end.

Outlook and guidance

• 2026 expected to be a transition year with recovery in steel and foundry markets, aided by trade protection measures and cost savings.

• Profit growth anticipated in 2026, with medium-term target of 12.5% return on sales.

• Guidance assumes 1% volume growth, with cautious assumptions for Europe.

• 2026 guidance: depreciation £75–80m, net finance cost £20–21m, capex £70–75m, cost savings c.£10m.

• Leverage expected to decrease as trading profit improves and CapEx normalizes.