Palantir a high-risk investment with ’a one-of-a-kind growth and margin model’
Investing.com -- Weir Group ’s (LON:WEIR) stock rose over 4% on Friday following its second-half 2024 results, which showed stronger-than-expected margins and a positive outlook for the years ahead.
The Scottish engineering company posted an EBITA margin of 19.8%, exceeding market expectations by 130 basis points.
This was driven by cost savings from its Performance Excellence Program and a favorable product mix.
Despite a 6% revenue decline against company estimates, operating profit came in slightly ahead of forecasts.
Earnings per share for the second half reached 66p, marginally above consensus, while the final dividend per share of 22.1p was 2% higher than expected.
Free operating cash conversion improved to 102% for the year, while net debt dropped by approximately 20% year-over-year to £535 million.
The company’s order book showed resilience, with a Q4 book-to-bill ratio of 0.95x, signaling steady demand heading into 2025.
The minerals division posted a 22.5% margin, with operating profit 2% above expectations, while the ESCO division saw a 18.3% margin, slightly exceeding forecasts.
For 2025, the company foresees an 8% growth in organic sales, attributed to increased original equipment demand.
This growth is expected to translate into improved profitability, with EBITA margins climbing to 19.3% in 2025 and further surpassing 20% in 2026 through continued cost efficiency efforts.