BofA warns Fed risks policy mistake with early rate cuts
Investing.com -- Weir Group (OTC:WEGRY) on Thursday delivered healthy first-half 2025 results with earnings per share exceeding market expectations, while also upgrading its full-year margin guidance.
The engineering company reported sales of £1,195 million for the first half, representing 4% growth on a constant currency basis but a 1% decline in reported terms. This figure came in 5% below consensus estimates of £1,261 million.
Earnings before interest, taxes and amortization (EBITA) reached £237 million, in line with consensus expectations and up 17% year-on-year on a constant currency basis.
The EBITA margin expanded to 19.8%, representing a 200 basis point improvement compared to the same period last year.
The company’s Minerals division performed particularly well, achieving a 21.8% margin that exceeded market expectations by 140 basis points. Aftermarket sales showed strong growth in both divisions, with Minerals aftermarket sales increasing by 8%.
Earnings per share of 58.7p came in 2% above consensus estimates of 57.4p.
Orders for the period totaled £1,304 million, slightly below consensus expectations of £1,313 million, but still representing 8% year-on-year growth on a constant currency basis.
Original equipment orders increased by 7%, while aftermarket orders grew by 8%. The book-to-bill ratio improved to 1.09x compared to 1.01x for the full year 2024.
Net debt increased to £1,213 million from £535 million at the end of fiscal year 2024, primarily due to the Micromine acquisition. The net debt to EBITDA ratio stood at 2.0x.
Looking ahead, Weir Group maintained its full-year 2025 guidance for constant currency sales growth but upgraded its EBITA margin guidance to approximately 20%.
The company attributed the improved margin outlook to the favorable mining backdrop, benefits from its Performance Excellence program, and contributions from the Micromine acquisition.
The company’s free operating cash flow conversion guidance remained unchanged and in line with its medium-term targets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.