The Weir Group (WEIR) H2 2024 earnings summary

Executive summary

• Announced acquisition of Micromine, a leading mining software company, to accelerate digital strategy and enhance recurring revenue streams, alongside strong 2024 results.

• Achieved strong operational and financial performance in 2024, with margin expansion, robust cash generation, and upgraded Performance Excellence savings target to GBP 80 million by 2026.

• Aftermarket orders grew 4% for the year, with Q4 AM orders up 10% year-over-year, reflecting installed base expansion and improved mining activity.

• Continued focus on sustainability, with a 27% reduction in CO₂ emissions since 2019 and ongoing initiatives for safer workplaces and purpose-driven culture.

• Major project wins include GBP 53 million for Reko Diq (Pakistan) and GBP 25 million for OCP (Morocco).

Financial highlights

• Orders increased 2% to GBP 2.5 billion; revenue decreased by 1% to GBP 2.5 billion due to OE delivery phasing and exit from Russian operations.

• Adjusted operating profit rose 9% to GBP 472 million; operating margin expanded 170 bps to 18.8%.

• EPS increased 4% to GBP 1.20 per share; statutory profit after tax up 37% to GBP 315 million.

• Free operating cash conversion reached 102%, up 17 percentage points year-over-year.

• Full-year dividend increased to GBP 0.40 per share.

Outlook and guidance

• Entering 2025 with strong momentum, expecting mid-single digit revenue growth, ~50 bps margin expansion, and free operating cash conversion between 90%-100%.

• CapEx to align with depreciation; effective tax rate around 28%.

• Confident in delivering operating margins sustainably above 20% by 2026, excluding Micromine accretion.

• Acquisition debt from Micromine to be deleveraged below 1.5x by year-end 2026.

• Performance Excellence savings of GBP 20 million targeted for 2025; cumulative savings of GBP 80 million by 2026.