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Investing.com -- Shares of engineering firm Weir Group PLC (LON:WEIR) edged up by 0.6% following the announcement that the company’s first quarter orders saw a 5% organic increase, matching forecasts and signaling robust growth in the core mining markets.
The firm has maintained its full-year outlook, anticipating growth in constant currency revenue, operating profit, and operating margin.
The company’s first quarter performance was bolstered by a 5% year-on-year (YoY) increase in both aftermarket (AM) and original equipment (OE) orders, with the group’s book-to-bill ratio improving to 1.11 times, up from 0.95 times in the previous quarter.
Divisionally, Weir Minerals reported an 8% lift in like-for-like orders, while ESCO, another division of the group, saw a slight decrease in AM orders and flat OE orders.
This was partially due to a high comparison base from large dredging orders in the prior year. Sequentially, orders remained stable quarter-on-quarter, maintaining the high level seen in Q4.
Despite the imposition of tariffs, the company has begun rerouting U.S. orders to domestic sites and is in discussions regarding pricing adjustments, with expectations to fully mitigate direct impacts for the fiscal year.
Reaffirming their outlook, management expects full-year trading to align with predictions for growth in constant currency revenue, operating profit, and operating margin. They also anticipate a 50 basis point margin improvement YoY.
While minor currency fluctuations have presented a marginal headwind to EBITA, there is potential for outperformance through cost management efforts. The current consensus stands at £522 million of EBITA (19.4% margin), closely aligned with the company’s own expectations of £530 million (19.5%).
An analyst from RBC commented on the company’s performance, stating, "Solid start to 2025 with supportive order growth and no change to expectations for the FY. In our view, the underlying performance of Weir Minerals highlights not just a top-tier mining equipment play, but also traits comparable to those of much higher-rated “quality” names in our wider coverage."