Vesuvius (VSVS) Q3 2026 TU earnings summary

Executive summary

• FY26 trading profit expected broadly in line with FY25 on a constant-currency basis; Flow Control and Foundry are ahead, while Advanced Refractories remains challenged.

• North American production backlogs have materially reduced; operational issues in North America and India are expected to be resolved by year-end.

• Positive direction of travel for 2027, though recovery depends partly on recapturing unmet demand and the pace of European steel market improvement.

Financial highlights

• FY25 reported revenue was £1,809.5m and trading profit £151.1m; retranslated figures were £1,800.1m and £147.2m, respectively.

• FY25 return on sales was 8.4% at reported FX rates and 8.2% on the hybrid retranslated basis.

• North American operations are making as much money in 2026 as last year; disruption has primarily meant lost growth opportunity rather than lower profit.

• India operational issues account for a few million pounds of missed profit; Advanced Refractories impacts are in the single-digit millions.

Outlook and guidance

• FY26 trading profit expected broadly in line with FY25 on a constant-currency basis; technical guidance issued 30 July remains unchanged.

• FY26 forecast assumes operational recovery in North America and India proceeds as anticipated, alongside pricing, cost-reduction and efficiency initiatives.

• North American operations are expected to stop weighing on volume from year-end; much of the Flow Control recovery is expected in 2027.

• European steel markets may begin improving in Q4, with a stronger recovery expected in 2027; outlook remains uncertain.

• European Advanced Refractories cost actions are expected to deliver their full results from Q1 2027.