Severfield (SFR) H2 2025 earnings summary

Executive summary

• Revenue declined 3% year-over-year to £450.9m, with underlying profit before tax down 50% to £18.1m amid challenging market conditions.

• Underlying basic EPS fell 52% to 4.3p; net debt increased to £43.1m due to bridge remedial costs.

• UK and Europe order book grew to £444m, and India order book reached a record £240m, with new Gujarat facilities expected in FY26.

• Bridge remedial works are progressing, with a non-underlying charge of £32.5m; insurance settlement agreed.

• Final dividend suspended, with commitment to resume as soon as possible.

Financial highlights

• Revenue: £450.9m (down 3% year-over-year); underlying operating profit: £21.7m (down 42%).

• Underlying profit before tax: £18.1m (down 50%); underlying EPS: 4.3p (down 52%).

• Net debt at year-end: £43.1m; leverage at 1.2x; facility headroom of c.£30m.

• Working capital outflow of £15.6m; bridge remedial cash costs of £19m incurred in FY25.

Outlook and guidance

• Expectations for FY26 unchanged; well positioned for long-term growth in green energy and infrastructure.

• Very encouraging outlook for India, with significant value creation opportunities.

• Net debt for FY26 expected to remain around £45m, with stable working capital and capex of c.£5m.