UK's Castings Plc annual revenue falls 2% on lower truck demand
UK's Castings Plc annual revenue falls 2% on lower truck demand
Overview
UK foundry and machining group's revenue fell 2% for the year ended 31 March 2026
Operating profit more than doubled as production efficiencies improved and energy surcharges fell
Basic EPS rose 81% year-on-year, reflecting higher profit before tax
Outlook
Castings sees customer schedules indicating a 5%-10% increase in demand, including wind energy work
Company says some OEMs have raised European truck forecasts for 2026
Company says power supply restrictions offset increased schedules in first two months; full power restored 24 May 2026
Result Drivers
LOWER TRUCK DEMAND - Co said demand from heavy truck customers remained at reduced levels, especially in Europe and the US
PRODUCTION EFFICIENCIES - Co attributed improved operating profit to more consistent production requirements and efficiencies in foundry operations
LOWER ENERGY SURCHARGES - Co said reduced average selling price reflected lower energy surcharges, contributing to revenue decline
Company press release: ID:nRSQ5523Ia
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Slight Miss* | GBP 173.23 mln | GBP 174.95 mln (2 Analysts) |
FY Net Income | Beat | GBP 7.55 mln | GBP 7.45 mln (2 Analysts) |
FY EBIT | Beat | GBP 9.96 mln | GBP 9.40 mln (2 Analysts) |
FY Pretax Profit | Beat | GBP 10.30 mln | GBP 9.95 mln (2 Analysts) |
FY Gross Profit |
| GBP 31.27 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the iron & steel peer group is "buy"
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)