The Weir Group (LON:WEIR) told investors it delivered a “very strong” 2025 and entered 2026 with momentum, citing supportive mining markets, robust aftermarket demand, and contributions from acquisitions as the company pivots toward growth.
2025 results: revenue growth, margin expansion, and cash conversion
Management said 2025 revenue rose 6% on a constant-currency basis to GBP 2.6 billion, supported by high demand in the aftermarket, “flawless execution” on the original equipment (OE) order book in the fourth quarter, and acquisition contributions. Orders increased 7% to GBP 2.6 billion, with OE orders flat year-over-year and aftermarket orders up 8%.
Profit before tax was GBP 447 million, which the CFO said was GBP 19 million ahead of last year despite a GBP 22 million translational foreign exchange headwind. Earnings per share increased 3% to GBP 1.238.
Weir reported free operating cash conversion of 92%, within its 90%–100% target range. The company said working capital rose due to inventory build tied to operational moves under Performance Excellence and the impact of U.S. tariffs on year-end inventory balances. Working capital as a percentage of sales increased by 170 basis points to 22.4%, with management expecting a return toward its 20% target as operations normalize.
After acquisition activity in 2025, net debt to EBITDA increased to 1.9x, toward the top end of management’s stated range following acquisitions. Return on capital employed decreased 140 basis points to 17.9%, which management said remained well above its cost of capital. The full-year dividend was 41.7 pence per share, up 4%.
Divisional performance: Minerals and ESCO
In Minerals, management described market conditions as positive, noting gold and copper prices reaching all-time highs and driving demand as customers sought to maximize production from existing assets. Minerals orders grew 5%, with OE orders stable and aftermarket orders up 7%. Revenue increased 6% and operating profit rose 11% on a constant-currency basis to GBP 406 million. Segment operating margin expanded 100 basis points to 21.9%, supported by Performance Excellence work streams and operational efficiencies.
ESCO reported orders up 11%, with management citing strong demand for core ground engaging tools (GET) in mining and infrastructure markets, partly offset by normalized dredge demand. Excluding the GBP 44 million contribution from Micromine, like-for-like order growth was 4%. Total ESCO revenue increased 6%, including GBP 41 million from Micromine, while operating profit rose 22% to GBP 152 million. ESCO margin expanded 260 basis points to 21.4%, including a 120 basis point contribution from Micromine and incremental Performance Excellence savings.
Providing operational metrics for Micromine, Weir said customer retention increased to 94%, recurring revenue reached 88%, and annual recurring revenue grew 24% on an annualized basis.
Margin bridge, adjusting items, and balance sheet actions
The CFO detailed the key drivers behind 2025’s group margin expansion, including 140 basis points of Performance Excellence savings (with cumulative savings at GBP 59 million), 30 basis points from acquisitions, and a 30 basis point headwind from increased R&D investment. A small revenue-mix shift in Minerals toward aftermarket provided a 10 basis point tailwind, while translational FX represented a 10 basis point headwind.
Adjusting items totaled GBP 73 million, including GBP 47 million of exceptional costs. Performance Excellence program costs were GBP 45 million, and management said the final total program cost was GBP 113 million, below prior guidance. Acquisition and integration costs were GBP 22 million, including GBP 5 million tied to the unwind of a fair value uplift on Townley inventory.
Management also discussed legacy exposures. The U.S. entity holding asbestos-related claims entered Chapter 11 bankruptcy proceedings during the year and has been deconsolidated. Weir said it believes the remaining provision is sufficient with no further charges expected. The company added that defined benefit pension schemes moved from an approximately GBP 100 million deficit to a funded surplus, making future special cash contributions unlikely.
Strategy and 2026 outlook: growth, integration, and investment
Management emphasized strategic progress in digital, geographic expansion, and product extensions. In software, Weir said it has built a platform combining Micromine, Fast2Mine, and MOTION METRICS, with 2026 described as the year of “bringing it all together.” The company said Micromine integration is complete, Fast2Mine has started strongly toward its one-year earn-out, and MOTION METRICS has moved into ESCO’s software segment.
On geographic expansion, management highlighted the Townley acquisition (strengthening Minerals in North America), completion of the remaining share acquisition in ESCO’s Chilean joint venture Essel, and a joint venture agreement with Olayan in Saudi Arabia. On product extensions, Weir discussed development of the ENDURON vertical stirred mill (with a first order received) and a global collaboration agreement with CiDRA to commercialize its P29 separation technology, which management said offers throughput improvement of over 40% versus traditional grinding circuits.
Looking ahead, Weir guided to another year of growth in revenue and operating profit in 2026, alongside 50 basis points of operating margin expansion. Management said it expects mid-single-digit aftermarket revenue growth supported by strong demand and modest price increases, and said its software businesses remain on track for further strong growth consistent with acquisition expectations. It also expects free operating cash conversion of 90%–100% and improvement in working capital.
In Q&A, management said the environment for larger mining CapEx projects appears increasingly positive, but timing remains difficult to predict. Addressing Reko Diq, management said it has delivered and been paid for the HPGRs, with only a modest amount left in the order book covered by advanced payments and cancellation clauses, leaving “no balance sheet exposure,” while aftermarket opportunities depend on whether the mine proceeds.
For 2026 modeling, Weir expects net interest costs of GBP 90 million, CapEx and lease spend around 1.3x depreciation as it invests in foundries and begins a company-wide SAP S/4 implementation, and exceptional cash costs of GBP 25 million–GBP 30 million. Management said it expects to de-lever back toward its normal 0.5x–1.5x net debt to EBITDA range by the end of 2026.
On sustainability, management said absolute Scope 1 and 2 emissions are down 31% versus the 2019 baseline, ahead of its original 2030 target for a 30% reduction. However, on safety, management said total incident rate increased versus the prior year, though recordable incidents declined in the second half and a broader strategy refresh is planned for 2026.
About The Weir Group (LON:WEIR)
The Weir Group PLC produces and sells highly engineered original equipment worldwide. It operates in two segments, Minerals and ESCO. The Minerals segment offers engineering, manufacturing, and service processing technology for the use in abrasive high-wear mining applications; and differentiated technology for the use in infrastructure and general industrial markets. The ESCO segment provides ground engaging tools for large mining machines. This segment also offers cloud-based Artificial Intelligence solutions to the mining industry; manufactures and distributes highly engineered wear parts; and offers aftermarket services to the mining industry.
