Weir (WEIR) Q1 2025 TU earnings summary

Executive summary

• Strong start to the year with robust mining demand, driven by brownfield projects, production growth, and installed base expansion.

• 2025 full year guidance reiterated, supported by strategic growth initiatives and market share gains.

• Record pipeline at the start of 2025 is converting as expected, with notable large equipment orders including £18m for GEHO pumps.

• Performance Excellence programme and Micromine acquisition progressing on track.

Financial highlights

• Group orders up 5% year-over-year, with both original equipment (OE) and aftermarket (AM) orders growing 5%.

• Minerals OE orders up 6% and AM orders up 9% year-over-year; ESCO G.E.T. orders up 4% year-to-date, but ESCO AM orders down 2% due to order phasing.

• Book-to-bill ratio improved to 1.11 in Q1 2025.

• Cumulative Performance Excellence savings reached £35m, targeting £80m by 2026.

Outlook and guidance

• On track to deliver 2025 guidance: growth in constant currency revenue, operating profit, and margin.

• Free operating cash conversion expected between 90% and 100%.

• Mid-single-digit growth expected in both OE and aftermarket revenue.

• 50 basis points of margin expansion anticipated, with 100 basis points from efficiencies offset by 50 basis points from minerals mix and R&D.

• Long-term margin expansion expected, targeting sustainable operating margins above 20%.