UK's Severfield beats FY26 revenue expectations
UK's Severfield beats FY26 revenue expectations
Overview
UK structural steel group's FY26 revenue rose 1%, beating analyst expectations
Adjusted operating profit and pretax profit for FY26 both beat analyst expectations
Profitability declined on competitive pricing, project delays, and less favorable project mix
Outlook
Severfield expects FY27 underlying profit before tax of £12m-£15m
Company says FY27 first-half profitability will reflect lower-margin work; higher-value projects start later
Severfield targets medium-term revenue of £500m-£550m and operating margin of 7-8%
Result Drivers
COMPETITIVE PRICING AND PROJECT DELAYS - Co said profitability was impacted by competitive pricing, delays to project awards, and a less favorable project mix in the UK and Europe
NUCLEAR AND INFRASTRUCTURE GROWTH - Higher volumes in the Nuclear and Infrastructure division supported revenue, offsetting declines in commercial and industrial sectors
STRONG INDIA JV CONTRIBUTION - Increased profit from Indian joint venture JSSL helped offset lower profitability in core operations
Company press release: ID:nRSW2907Ja
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Beat | GBP 454.30 mln | GBP 435.82 mln (5 Analysts) |
FY Adjusted Operating Profit | Beat | GBP 12.70 mln | GBP 11.20 mln (4 Analysts) |
FY Adjusted Pretax Profit | Beat | GBP 10.50 mln | GBP 10.22 mln (5 Analysts) |
FY Adjusted Operating Margin |
| 2.8% |
|
FY Operating Margin |
| -7.70% |
|
FY Operating Profit |
| -GBP 35.10 mln |
|
FY Pretax Profit |
| -GBP 39.90 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy."
Wall Street's median 12-month price target for Severfield PLC is GBp42.00, about 51.1% above its June 22 closing price of GBp27.80
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)