REG-Vesuvius Plc: Trading Statement

VesuviusAnnouncement

Today 07:02

 

11 November 2025

Vesuvius plc – Autumn trading update

Vesuvius plc, a global leader in molten metal flow engineering and technology,
announces the following update for the period 1 July to 31 October 2025.

Summary
*            Over the period, revenue was broadly in line with our
expectations as            our end markets remain challenging but stable:     
     *              Global steel production              (1)             
growth outside of China remained modest at 0.5% YTD despite a higher level of
demand, due to persistently elevated Chinese exports             
*              Except for India and China which continue to grow, Foundry
end-markets remained weak but broadly stable            
          
*            Continued market share gains in both Steel and Foundry           
*            Price increases have been progressively implemented and are
offsetting cost inflation in the second half of the year          
*            Our structural cost reduction programme remains on track, with
£18m to be delivered in 2025 and at least £55m of recurring savings expected
to be achieved by 2028           
*            During the period, we experienced some temporary production
inefficiencies in our Foundry division          
*            We expect to complete the acquisition of Morgan’s Molten Metals
Systems business by mid-November, with significant synergies realised from
2027          
*            Notwithstanding the continued tough external environment, due to
our efforts around cost and pricing management, we anticipate trading profit
for the full year to be broadly in line with our previous guidance          
*            In the medium term, the market outlook is more positive, with
efficient protection measures against unfair trade in steel being gradually
introduced by many countries, in particular in Europe and the Americas, which
are important markets for Vesuvius           
                        
(1)                      World excluding China, Iran, Russia and Ukraine

 

Market conditions remain subdued but with a more positive medium-term outlook
for the Steel markets

Steel production in the world excluding China, Iran, Russia and Ukraine
remained modest (+0.5% year-on-year) despite a higher level of steel demand
growth with production subdued by a further increase in Chinese net steel
exports (10.2% growth YTD versus the comparable prior period).

Steel production in the world outside of China, Iran, Russia and Ukraine and
Iran would have increased by 1.7% had Chinese steel exports remained stable
year on year.

Over the first nine months of the year, EMEA steel production declined by
2.1%, with EU27+UK continuing to decline (-5.0%) while EEMEA grew +2.0%. North
America was slightly up (+0.1%), with the US growing by 2% but offset by lower
production in Mexico and Canada which both declined by over 5%. India and
South-East Asia continue to exhibit strong growth (+10.5% and +8.3%,
respectively) while South America contracted slightly (-1.9%)                 
    (WSA figures to end Sept 2025).

In Foundry, outside of India and China, end-markets remain subdued but stable.
India continues to grow, driven by a strong domestic manufacturing sector and
its infrastructure build out, while markets outside of India are yet to
recover from an environment of high interest rates which has weighed heavily
on the end-markets served by our Foundry customers.

Looking ahead, there are an increasing number of protection measures against
unfair trade in steel which are being gradually introduced by many countries,
particularly in Europe and in the Americas, which are important markets for
the Vesuvius Steel division. Over 60 countries worldwide are now introducing
some form of protective measures against unfair trade in steel.               
    This, alongside domestic policy actions announced by the Chinese
Government to reduce production, should ultimately support a reduction in
Chinese exports, and therefore support steel production outside of China.     
     

Stable revenue

Year-to-date revenue was slightly ahead of the prior year on a constant
currency basis. Steel division revenues benefited from increased sales in
Advanced Refractories with Flow Control stable, reflecting ongoing market
share gains and the successful implementation of price increases. Revenue in
Foundry was slightly lower versus the prior year, reflecting the year-on-year
market decline, largely compensated by market share gains. Net pricing in both
Steel and Foundry has progressively improved, such that increases in price are
now covering the cost inflation in the second half.

Our structural cost reduction programmes remain on track, and we continue to
target recurring annual savings of £55m by 2028, as previously announced, and
will deliver incremental in-year savings of £18m this year.

During the period, we experienced some temporary production inefficiencies in
our Foundry division.

Cashflow

We continue to actively manage the business to optimise cash generation. Our
focus on disciplined control of trade working capital has successfully reduced
inventory and our expectations for an overall reduction in working capital in
the second half are unchanged. Additionally, expectations for a year-on-year
reduction in capex to the level of £75-80m for this year are also unchanged,
reflecting the conclusion of our investment capex programme. We anticipate the
completion of the Molten Metals Systems acquisition by mid-November, which
will result in a cash outflow of £20m in addition to the issue of new shares
in our Indian listed subsidiary, Foseco India Limited. This acquisition is
expected to be EPS-accretive in 2026 and onwards.

Outlook

We expect the current market conditions, particularly ongoing weakness in
Europe, to persist, consistent with our previous guidance. Pricing
improvements are being realised progressively and are offsetting cost
inflation in H2.            Notwithstanding the continued tough external
environment, due to our efforts around cost and pricing management, we
anticipate trading profit for the full year to be broadly in line with our
previous guidance.          
 

Looking into the medium-term, the outlook for the global steel market
(ex-China) appears more supportive due to protection measures against unfair
trade being gradually introduced by a large number of countries.             
        We remain confident in the strength of our technologically
differentiated business model and of our customer offering, the long-term
structural growth trends that the Group is exposed to and our ability to
further optimise the business in order to drive profit, margin and cashflow
growth.

Technical guidance for FY25, update

 FY24             Reported FX rates  Re-translated*  
 Revenue          £1,820.1m          £1772.3m        
 Trading profit   £188.0m            £178.1m         
 Return on sales  10.3%              10.0%           

* Hybrid rate based on 8 months YTD 2025 average FX rates to 30 Sept 2025
blended with current spot for 4 months

All other line-items of technical guidance given on 6 August 2025 remain
unchanged.

CONFERENCE CALL

Patrick André (Chief Executive) and Mark Collis (Chief Financial Officer)
will be hosting a conference call with Q&A for analysts and investors at 08:00
(UK time) today.

 

To participate, please register at least 30 minutes prior to the start of the
call by following the link                                  here              
      
(https://protect.checkpoint.com/v2/r06/___https://registrations.events/inwjhydQTS68*~*788*~*8*/2*___.ZXV3MjpuZXh0MTU6YzpvOjU4NzgyYzcyYTIwNWE4NWYxZjc5NDI1YzExZmM3ODllOjc6M2JmMjozNzAzNjIyZGFhMjE5ZDUxZTUxOTg1YjRkNTc2ZWQ2MDBhN2QxOWY1NjFhODFhYzFiMThmYjA5ZDM5MWYzMzBlOnA6RjpU)
         . If your registration doesn’t come through within a few minutes,
please check your “junk” inbox.

A replay of the call will be available for one week, which can be accessed via
the same link above.

 

 For further information, please contact:                                                                                                             
 Shareholder/analyst enquiries:                                                                                                                       
 Vesuvius plc           Patrick André, Chief Executive                                                    +44 (0) 207 822 0000                        
                        Mark Collis, Chief Financial Officer  Rachel Stevens, Head of Investor Relations  +44 (0) 207 822 0000                        
                                                                                                           +44 (0) 7387 545 271                       
 Media enquiries:                                                                                                                                     
 MHP                    Rachel Farrington, Ollie Hoare,  Veronica Farah                                   +44 (0) 7817 458804  vesuvius@mhpgroup.com  

 

About Vesuvius plc

Vesuvius is a global leader in molten metal flow engineering and technology
principally serving process industries operating in challenging high         
-          temperature conditions.

We develop innovative and customised solutions, often used in extremely
demanding industrial environments, which enable our customers to make their
manufacturing processes safer, more efficient and more sustainable. These
include flow control solutions, advanced refractories and other consumable
products and increasingly, related technical services including data capture.

We have a worldwide presence. We serve our customers through a network of
cost-efficient manufacturing plants located close to their own facilities, and
embed our industry experts within their operations, who are all supported by
our global technology centres.

Our core competitive strengths are our market and technology leadership,
strong customer relationships, well established presence in developing markets
and our global reach, all of which facilitate the expansion of our addressable
markets.

Our ultimate goal is to create value for our customers, and to deliver
sustainable, profitable growth for our shareholders giving a superior return
on their investment whilst providing each of our employees with a safe
workplace where they are recognised, developed and properly rewarded.

We think beyond today to create solutions that will shape the future for      
              everyone.

Forward looking statements

This announcement contains certain forward looking statements which may
include reference to one or more of the following: the Group's financial
condition, results of operations, cash flows, dividends, financing plans,
business strategies, operating efficiencies or synergies, budgets, capital and
other expenditures, competitive positions, growth opportunities for existing
products, plans and objectives of management and other matters.

Statements in this announcement that are not historical facts are hereby
identified as "forward looking statements". Such forward looking statements,
including, without limitation, those relating to the future business
prospects, revenue, working capital, liquidity, capital needs, interest costs
and income, in each case relating to Vesuvius, wherever they occur in this
announcement, are necessarily based on assumptions reflecting the views of
Vesuvius and involve a number of known and unknown risks, uncertainties and
other factors that could cause actual results, performance or achievements to
differ materially from those expressed or implied by the forward looking
statements. Such forward looking statements should, therefore, be considered
in light of various important factors that could cause actual results to
differ materially from estimates or projections contained in the forward
looking statements. These include without limitation: economic and business
cycles; the terms and conditions of Vesuvius' financing arrangements; foreign
currency rate fluctuations; competition in Vesuvius' principal markets;
acquisitions or disposals of businesses or assets; and trends in Vesuvius'
principal industries.

The foregoing list of important factors is not exhaustive. When considering
forward looking statements, careful consideration should be given to the
foregoing factors and other uncertainties and events, as well as factors
described in documents the Company files with the UK regulator from time to
time including its annual reports and accounts.

You should not place undue reliance on such forward looking statements which
speak only as of the date on which they are made. Except as required by the
Rules of the UK Listing Authority and the London Stock Exchange and applicable
law, Vesuvius undertakes no obligation to update publicly or revise any
forward looking statements, whether as a result of new information, future
events or otherwise. In light of these risks, uncertainties and assumptions,
the forward looking events discussed in this announcement might not occur.

 

Vesuvius plc, 165 Fleet Street, London EC4A 2AE

Registered in England and Wales No. 8217766

LEI: 213800ORZ521W585SY02

www.vesuvius.com 

 

 



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