Vesuvius (VSVS) H2 2025 earnings summary

Executive summary

• Revenue increased 0.7% like-for-like to £1,809.5m, driven by limited price increases and market share gains, despite challenging steel and foundry markets, especially in EMEA.

• Trading profit declined 17% like-for-like to £151.1m, mainly due to negative net pricing, mix in H1, and EMEA accounting for 80% of the fall.

• Adjusted EPS fell 17.7% like-for-like to 34.2p, reflecting lower trading profit but fewer shares.

• Cost savings programme delivered £17.8m in-year, with a run rate of £37.4m and a target of £55m by 2028, ahead of schedule.

• Integration of MMS and PiroMET acquisitions progressing well, expected to deliver synergies above initial estimates.

Financial highlights

• Reported revenue for 2024 was GBP 1.82 billion; underlying revenue GBP 1.775 billion after currency adjustment.

• Return on sales dropped 170bps like-for-like to 8.4%; trading profit was GBP 178.3 million.

• Free cash flow was £36.0m; cash flow conversion improved from 69% to 75%; CapEx reduced by GBP 15 million year-over-year.

• Working capital remained flat at £390.5m at year-end; intensity at 23.4%, with a target to reduce to 21%.

• Net debt/EBITDA increased to 2.0x, reflecting acquisitions and share buybacks, but remains within target range.

Outlook and guidance

• 2026 expected to be a transition year with recovery in steel and foundry markets, supported by trade protection measures and cost savings.

• Profit growth anticipated in 2026, with medium-term target of 12.5% return on sales and significant free cash flow.

• 2026 guidance: depreciation £75–80m, net finance cost £20–21m, capex £70–75m, cost savings c.£10m.

• Guidance assumes 1% volume growth, with cautious assumptions for Europe and potential upside if trade measures are implemented earlier.

• Leverage expected to decrease as trading profit improves and CapEx normalizes.