REG - Weir Group PLC - Q3 Trading Update

WeirAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251105:nRSE1968Ga&default-theme=true

RNS Number : 1968G  Weir Group PLC  05 November 2025

 

 

The Weir Group PLC trading update for the third quarter ended 30 September
2025(3)

Executing well with further strategic progress

 

Group orders(1) +2% including contributions from Micromine and Townley
acquisitions

•    Group OE orders(1,2) +15%, excluding large orders in prior year -
reflecting good underlying demand

•    Group AM orders(1) +10% - reflecting installed base expansion and 5%
contribution from acquisitions

Capturing growing demand across our key commodity exposures of copper, gold
and iron ore

•    Minerals OE orders -24%(1) - as expected, due to £48m of OCP and
Reko Diq orders in prior year

•    ESCO OE orders +36%(1) - geographic expansion across APAC

Installed base conversion and software solutions driving aftermarket demand

•    Minerals AM orders(1) +5% - HPGR installed base conversion and
contribution from Townley

•    ESCO AM orders(1) +21%

o  +9% organic growth driven by core GET and MOTION METRICS(TM)

o  +12% from Micromine with a £17m contribution, in line with deal
expectations

Strong operating momentum and further strategic investments announced

•    Performance Excellence progressing on plan against £80m target of
absolute savings in 2026

•    Townley acquisition completed in August, strengthening Weir's
presence in North America

•    Fast2Mine acquisition announced, extending Micromine's suite of
mining software solutions

FY outlook: 2025 guidance reiterated

•    Growth in constant currency revenue and operating profit

•    Operating profit margin of c.20%

•    Free operating cash conversion of 90% to 100%

Jon Stanton, Chief Executive Officer, commented:

"Our performance in the third quarter reflects positive activity in our core
mining markets. Demand for brownfield and debottlenecking solutions is driving
healthy order momentum for original equipment across both divisions. As
customers maximise production to capitalise on metals demand, good underlying
aftermarket activity has been enhanced by further installed base conversion
and a strong contribution from recent acquisitions.

Having announced our intention to acquire Fast2Mine and completed the Townley
transaction, we further strengthened our market presence and product offering,
helping our customers address their critical operational and sustainability
challenges.

Looking forward to the fourth quarter, despite a number of challenges facing
the mining industry, not least continued uncertainty on the outcome of tariff
negotiations, we remain focused on disciplined execution against our strong
orderbook. We reiterate our 2025 guidance for growth in constant currency
revenue and operating profit, together with delivery of our margin and cash
conversion targets."

 

Third quarter review

Group

Overall activity levels in mining markets remain positive with strong demand
in our core commodity exposures of copper, gold and iron ore.  At the margin
we observed a softening in demand in platinum group metals (PGMs), diamonds
and mineral sands as well as from certain well publicised mine disruptions.
 Across our businesses we continue to see good momentum across brownfield
sites as customers choose to partner with us in driving productivity and
sustainable mining while the greenfield pipeline remains strong with recent
support from specific government policy interventions.

Excluding the £48m(2) of large orders we received for the Reko Diq and OCP
greenfield projects booked in the prior year, Group OE orders(1) grew by 15%
reflecting healthy growth in brownfield projects across extraction and the
mill circuit. Including those two major projects, Group OE orders(1) decreased
by 21% during the quarter, reflecting the exceptionally strong prior-year
comparative.

Group AM orders(1) grew by 10% in the quarter, reflecting 5% underlying
organic growth from spare parts and expendables, including installed base
expansion, and a further 5% growth delivered by the Micromine and Townley
acquisitions.

Total Group orders(1) increased by 2% in the third quarter, with year to date
book-to-bill of 1.06.

Our Performance Excellence programme continues to progress in line with
expectations. In the fourth quarter, our focus is on executing key initiatives
within the capacity optimisation and lean processes workstreams. We are firmly
on track to achieve our 2026 target of £80m in cumulative savings.

We continue to execute against our acquisition roadmap as we identify targets
that meet our robust financial criteria and accelerate our growth strategy. In
the quarter we completed the acquisition of Townley, which increases our
exposure to the attractive phosphate market and provides a strategically
important North America foundry to the Minerals division. We also announced
our agreement to acquire mining software provider Fast2Mine, which will
complement Micromine's existing suite of mine planning and mine control
software while increasing our digital presence in Latin America.

Minerals

·      OE orders(1) -24%; against strong prior year comparative

·      AM orders(1) +5%; reflecting ore production growth, installed
base expansion and acquisitions

Excluding the combined £48m(2) order wins from OCP and Reko Diq booked in the
prior year, underlying OE orders developed positively and grew 13%(2), driven
by brownfield expansion and debottlenecking projects at existing mine sites.
Including those major projects, orders declined in the quarter against an
exceptionally strong comparative. We continue to gain market share for our
WARMAN(®) large mill circuit pumps maintaining our conversion rate above 90%
in the year.

Minerals AM orders(1) rose by 5%, supported by our expanding installed base
and favourable production trends in key mining end markets, particularly gold
and copper.  Organic AM orders(1) rose by 3%, supported by sustained ore
production in hard rock mining and the continued growth of our installed base,
particularly in pumps and HPGR solutions. We completed the acquisition of
Townley on 28 August 2025, which contributed £6m to AM orders, with key
integration workstreams now underway and progressing well.

ESCO

·      OE orders(1) +36%; reflecting strong demand for mining
attachments

·      AM orders(1) +21%; growth in core GET and Motions Metrics
products alongside Micromine

Original equipment orders grew strongly in the quarter, with high levels of
demand for our mining buckets, geographic expansion across the strategically
significant APAC region, and further market share gains with net 49 major
digger conversions in the quarter.

ESCO AM orders(1) increased by 21%, driven by a strong performance from MOTION
METRICS(TM) digital solutions, and contribution from Micromine. AM orders,
excluding acquisitions, within ESCO increased 9% in the quarter, driven by our
market leading technology, customer intimacy, and customer adoption of our
MOTION METRICS(TM) SaaS offering. In the quarter, Micromine contributed £17m
in orders, and continues to deliver in-line with our deal assumptions. The
announced acquisition of Fast2Mine is expected to complete in Q4 this year,
after which the business will be integrated into Micromine and reported within
the ESCO division.

 

Net debt

As expected, we remain on track to deliver strong cash generation, with net
debt levels following normal seasonal patterns. Net debt to EBITDA is expected
to be below 2.0x at December 2025 and below 1.5x by year end 2026, in line
with our capital allocation policy.

Outlook

Going into the fourth quarter, we are focused on executing against our strong
orderbook. For the full year, we reiterate our guidance for growth in constant
currency revenue and operating profit, operating margins of c.20%, and
delivery of free operating cash conversion of 90% to 100%. We continue to
expect headwinds from translational foreign exchange, which we currently
estimate to be £105m and £25m on our prior year comparative for revenue and
operating profit, respectively.

 

While we have fully mitigated trade tariffs enacted around the globe so far
this year, we continue to carefully monitor macro events which could further
impact our business. Specifically, we note elevated levels of uncertainty
related to critical metals disputes and further tariffs between the US and
China, and their potential to impact global supply chains and customer
sentiment.

 

Over the longer-term, Weir represents a compelling value creation opportunity
stemming from our compounding business model. We remain committed to
delivering our longer-term guidance: to outgrow our markets, expand margins,
and convert earnings into cash-while remaining resilient and committed to
doing the right thing for our people and the planet.

 

Notes:

1. Orders are reported on a constant currency basis with 2024 restated at 2025
average exchange rates.

2. Exclusive of £23m OCP and £25m Reko Diq order announced in Q3 2024,
restated at 2025 average exchange rates

3. Financial information is given for the three months ended 30 September
2025, unless stated otherwise

 

 

Analyst and investor conference call

A conference call for analysts and investors will be held at 08:00 GMT on
Wednesday 5 November 2025 to discuss this statement. Participants can join the
call by registering in advance by visiting www.global.weir/investors
(https://www.global.weir/investors) and following the link on the page. A
recording of this conference call will be available until Wednesday 12
November 2025.

 

Capital markets event - 3 December 2025 at 14:00 GMT

The event will feature deep dives illustrating growth prospects across our
software, digital solutions and core engineering technology. It will be hosted
by our CEO, Jon Stanton, who will be joined by members of the Weir executive
leadership team. Please visit www.global.weir/investors
(https://www.global.weir/investors) for more information and to register your
interest.

 

 Enquiries:
 Investors: Philip Carlisle  +44 (0)141 308 3617
 Media: Sally Jones          +44 (0)141 308 3666
 CDR: Claire de Groot        +44 (0) 207 638 9571

                             weir@cdrconsultancy.com

 

About The Weir Group PLC

 

Founded in 1871, The Weir Group PLC is one of the world's leading engineering
businesses with a purpose to make its mining and infrastructure customers'
operations more sustainable and efficient. Weir's highly engineered technology
enables critical resources to be produced using less energy, water and waste
while reducing customers' total cost of ownership. The Group is ideally
positioned to benefit from structural trends that support long-term demand for
its technology including the need for more essential metals to support
economic development and carbon transition. The Group has c.12,000 employees
operating in over 50 countries with a presence in every major mining region of
the world. Find out more at www.global.weir (http://www.global.weir) .

 

Weir's ordinary shares trade on the London Stock Exchange (ticker: WEIR LN)
and its American Depositary Receipts trade over-the-counter in the USA
(ticker: WEGRY).

 

Disclaimer

 

This information includes 'forward-looking statements'. All statements other
than statements of historical fact included in this presentation, including,
without limitation, those regarding The Weir Group PLC's (the "Group")
financial position, business strategy, plans (including development plans and
objectives relating to the Group's products and services) and objectives of
management for future operations, are forward- looking statements. These
statements contain the words "anticipate", "believe", "intend", "estimate",
"expect" and words of similar meaning. Such forward-looking statements involve
known and unknown risks, uncertainties and other important factors that could
cause the actual results, performance or achievements of the Group to be
materially different from future results, performance or achievements
expressed or implied by such forward-looking statements. Such forward-looking
statements are based on numerous assumptions regarding the Group's present and
future business strategies and the environment in which the Group will operate
in the future. These forward-looking statements speak only as at the date of
this document. The Group expressly disclaims any obligation or undertaking to
disseminate any updates or revisions to any forward-looking statements
contained herein to reflect any change in the Group's expectations with regard
thereto or any change in events, conditions or circumstances on which any such
statement is based. Past business and financial performance cannot be relied
on as an indication of future performance.

 

Appendix 1 - Group quarterly order trends

                     Reported organic growth
 Division            2024 Q1  2024 Q2  2024 Q3  2024 Q4  2025 Q1  2025 Q2  2025 Q3
 Original Equipment  -9%      -15%     19%      -7%      6%       16%      -24%
 Aftermarket         4%       -1%      3%       15%      9%       10%      3%
 Minerals            0%       -5%      8%       9%       8%       11%      -6%

 Original Equipment  -16%     -23%     -18%     10%      0%       -16%     36%
 Aftermarket         5%       -1%      -2%      -2%      -2%      4%       9%
 ESCO                3%       -4%      -3%      -1%      -2%      2%       11%

 Original Equipment  -9%      -16%     15%      -5%      5%       12%      -21%
 Aftermarket         4%       -1%      2%       10%      5%       8%       5%
 Group               1%       -4%      5%       7%       5%       9%       -2%
 Book-to-bill        1.11     0.97     1.01     0.95     1.11     1.07     1.01
                     Quarterly reported orders £m

 Division            2024 Q1  2024 Q2  2024 Q3  2024 Q4  2025 Q1  2025 Q2  2025 Q3
 Original Equipment  118      107      148      109      122      115      109
 Aftermarket         328      353      331      377      349      367      327
 Minerals            446      460      479      486      471      482      436

 Original Equipment  12       16       10       15       12       12       13
 Aftermarket         167      151      147      149      165      162      169
 ESCO                179      167      157      164      177      174      182

 Original Equipment  130      123      158      124      134      127      122
 Aftermarket         495      504      478      526      514      529      496
 Group               625      627      636      650      648      656      618

 

 

Appendix 2 - 2025 Q3 order bridges

 

                        Minerals          ESCO             Group
 Group orders           OE    AM   Total  OE   AM   Total  OE    AM   Total

 (£m)
 2024 Q3 - as reported  148   331  479    10   147  157    158   478  636
 Organic                -24%  3%   -6%    36%  9%   11%    -21%  5%   -2%
 Structure              0%    2%   1%     0%   12%  11%    0%    5%   4%
 Currency               -2%   -4%  -4%    -6%  -6%  -6%    -2%   -6%  -5%
 Total                  -26%  1%   -9%    30%  15%  16%    -23%  4%   -3%
 2025 Q3 - as reported  109   327  436    13   169  182    122   496  618

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTUSORRVAUARUA



            Copyright 2019 Regulatory News Service, all rights reserved