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, offsetting declines in steel and foundry markets, especially in EMEA.

• Trading profit declined 17% like-for-like to £151.1m, mainly due to negative net pricing and mix in H1 and EMEA weakness, partially offset by cost savings and improved pricing in H2.

• Return on sales decreased by 170 basis points year-over-year to 8.4%; leverage rose to 2x EBITDA due to acquisitions and share buybacks.

• Adjusted EPS fell 17.7% like-for-like to 34.2p; board proposed a final dividend of GBP 0.165 per share, total GBP 0.236 for the year, up 0.4%.

• Cost reduction programme delivered £17.8m recurring savings in 2025, ahead of schedule; integration of MMS and PiroMET acquisitions progressing well.

Financial highlights

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

• Like-for-like revenue up 0.6% despite a 0.8% decline in end markets.

• Trading profit GBP 178.3 million, return on sales 10%.

• Free cash flow was £36.0m; capex reduced by £15m year-over-year, improving cash flow conversion to 75%.

• Working capital remained flat at £390.5m at year-end.

Outlook and guidance

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

• Profit growth anticipated in 2026 on a constant currency basis; medium-term target return on sales of 12.5% reaffirmed.

• Guidance assumes 1% volume growth, with potential upside if EU trade measures are implemented earlier.

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