Severfield (SFR) H2 2026 earnings summary

Executive summary

• Delivered resilient FY 2026 results with stable revenue of GBP 454.3 million, strong second half performance, and a strategic refresh focused on margin, cash generation, and shareholder value despite challenging market conditions.

• Leadership transition and strategic actions included portfolio simplification, cost reduction, and operational discipline to drive efficiency and focus on high-margin sectors and geographies.

• India joint venture (JSSL) achieved record output, profitability, and order intake, supporting group performance.

• Order book at GBP 507 million, near peak levels, with strong performance in India and disciplined project selection.

• FY 2027 is expected to be a transition year, with underlying PBT guidance of GBP 12 million–GBP 15 million.

Financial highlights

• FY 2026 revenue broadly flat year-on-year at GBP 454.3 million, with underlying PBT down to GBP 10.5 million from GBP 18.1 million, reflecting margin pressure.

• Statutory loss before tax of GBP 39.9 million due to GBP 50 million in non-underlying costs, including impairments and closure costs.

• Cash conversion improved to 145%, net debt reduced to GBP 28.2 million, and leverage at 1.2x.

• UK/EU order book grew to GBP 507 million, and India order book reached GBP 344 million.

• JSSL (India JV) delivered record output (125,000 tons), revenue (GBP 154.8 million), and GBP 3 million profit contribution.

Outlook and guidance

• FY 2027 underlying PBT expected in the range of GBP 12 million–GBP 15 million.

• Medium-term ambition: revenue of GBP 500 million–GBP 550 million, operating margin of 7%–8%, underlying PBT of GBP 40 million–GBP 50 million, ROCE above 15%.

• Continued focus on higher-margin sectors, geographic diversification, disciplined project selection, and capital-light growth.