Severfield (SFR) H1 2026 earnings summary

Executive summary

• Revenue declined to £206.0m in H1 FY26 from £252.3m in H1 FY25, reflecting lower volumes and subdued demand in UK and Europe.

• Underlying profit before tax dropped to £0.6m from £16.1m year-over-year, with statutory loss before tax at £7.6m.

• New executive management team and Strategy & Transformation Director appointed, focusing on strategy, delivery, and efficiency.

• Net debt (pre-IFRS 16) improved to £21.7m, supported by strong cash generation and £20m insurance proceeds.

• Order book remains strong at £429m as of November 2025, with a record £286m in India and new production facilities expected operational in FY26.

Financial highlights

• Revenue down 18% year-over-year to £206.0m; underlying operating profit fell 87%.

• Statutory operating loss of £5.9m (H1 2025: £4.6m); underlying basic EPS: 0.2p; basic loss per share: 1.9p.

• Net debt reduced to £21.7m from £43.1m at March 2025, aided by insurance proceeds.

• Half-year liquidity headroom of £52m; net debt of £22m.

• Suspension of interim dividend to preserve liquidity and financial flexibility.

Outlook and guidance

• FY26 management expectations unchanged; good H2 revenue visibility from £429m order book.

• Well positioned for large-scale projects in FY27 and beyond, especially in energy and infrastructure.

• Expansion in India progressing, with new production facilities expected operational in H2 FY26.

• UK/Europe market remains subdued but tendering activity is improving, especially in data centres and distribution.

• Focus on cost reduction, cash conservation, and operational efficiency.