Severfield (SFR) Trading update summary

Trading performance and outlook

• Trading at the start of FY27 is in line with expectations, with unchanged guidance for underlying profit before tax of £12m–£15m.

• The order book reached £534m as of 1 July 2026, with £375m scheduled for delivery in the next 12 months, providing strong visibility for FY27.

• Recent project wins, especially in the data centre sector in the UK, Germany, and Sweden, have strengthened the order book.

• Continental Europe now represents 32% of the UK and Europe order book, up from 28%, reflecting successful contract awards and expansion.

• FY27 is a transition year, with first-half profitability impacted by lower-margin work, while higher-quality projects are expected to drive margin recovery in FY28.

India joint venture update

• The Indian joint venture (JSSL) saw its order book rise to £327m (₹4,143 crore) as of 1 July 2026, up from £267m (₹3,440 crore) on 1 June 2026.

• Growth is driven by data centre projects and new orders from partner JSW, supporting future revenue visibility.

• JSSL is positioned to make a growing contribution to group profitability over the medium term.

Strategic and operational highlights

• The group continues to expand its presence in continental Europe and India, focusing on higher-quality, margin-accretive projects.

• Transformation programmes and a stronger order book underpin confidence in medium-term margin recovery.