UBS cites three key drivers behind bullish outlook on Weir margins Investing.com -- UBS has outlined three main reasons why it remains positive on Weir (LON:WEIR), emphasizing margin potential as the key driver of its bullish stance, in a note dated Wednesday. First, UBS said it believes Weir’s margin bridge for the second half of 2025 is conservative. The brokerage pointed out that the company has assumed a 19% organic drop-through rate, compared with 30% in the first half despite weaker original equipment sales. It also noted that Weir has forecast £10 million in savings from its Performance Excellence programme, which UBS described as “light” given management’s own commentary that the risks lie to the upside. UBS’s revised estimates suggest the group could deliver a 20.8% adjusted EBITA margin in 2025, above the 20% company guidance and consensus forecast. Second, UBS drew comparisons with FLSmidth’s Pumps, Cyclones and Valves business, which has a similar product mix to Weir’s Minerals division but is about one-fifth the size. Despite its smaller scale, FLSmidth’s division reported higher margins at 24.2% compared with Weir Minerals’ 21.8%. UBS argued that Weir should ultimately achieve higher margins due to its greater scale and slightly larger aftermarket exposure. The bank is forecasting a 25.8% margin in the Minerals division by 2027, compared with consensus at 23%. Third, UBS said it expects Weir to deliver significantly more savings from the Performance Excellence programme than the company’s own target of £80 million. Its bottom-up analysis indicates potential savings of £125 million, with the additional £45 million equating to about 1.6% of adjusted EBITA margin based on 2026 consensus sales. UBS flagged Weir’s track record of underpromising and overdelivering on margin targets, reinforcing its confidence in this view. Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks AI – 6 model portfolios fueled by AI stock picks with a stellar performance this year... In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies. So if WEIR is on your watchlist, it could be very wise to know whether or not it made the ProPicks AI lists.

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Weir Group reports healthy 1H25 results, upgrades margin guidance Investing.com -- Weir Group (OTC:WEGRY) on Thursday delivered healthy first-half 2025 results with earnings per share exceeding market expectations, while also upgrading its full-year margin guidance. The engineering company reported sales of £1,195 million for the first half, representing 4% growth on a constant currency basis but a 1% decline in reported terms. This figure came in 5% below consensus estimates of £1,261 million. Earnings before interest, taxes and amortization (EBITA) reached £237 million, in line with consensus expectations and up 17% year-on-year on a constant currency basis. The EBITA margin expanded to 19.8%, representing a 200 basis point improvement compared to the same period last year. The company’s Minerals division performed particularly well, achieving a 21.8% margin that exceeded market expectations by 140 basis points. Aftermarket sales showed strong growth in both divisions, with Minerals aftermarket sales increasing by 8%. Earnings per share of 58.7p came in 2% above consensus estimates of 57.4p. Orders for the period totaled £1,304 million, slightly below consensus expectations of £1,313 million, but still representing 8% year-on-year growth on a constant currency basis. Original equipment orders increased by 7%, while aftermarket orders grew by 8%. The book-to-bill ratio improved to 1.09x compared to 1.01x for the full year 2024. Net debt increased to £1,213 million from £535 million at the end of fiscal year 2024, primarily due to the Micromine acquisition. The net debt to EBITDA ratio stood at 2.0x. Looking ahead, Weir Group maintained its full-year 2025 guidance for constant currency sales growth but upgraded its EBITA margin guidance to approximately 20%. The company attributed the improved margin outlook to the favorable mining backdrop, benefits from its Performance Excellence program, and contributions from the Micromine acquisition. The company’s free operating cash flow conversion guidance remained unchanged and in line with its medium-term targets. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks AI – 6 model portfolios fueled by AI stock picks with a stellar performance this year... In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies. So if WEIR is on your watchlist, it could be very wise to know whether or not it made the ProPicks AI lists.

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Weir Group upgraded to “buy” by Citi as margin and FCF gains justify re-rating Investing.com -- Citi Research has upgraded Weir Group (LON:WEIR) to “buy” from “neutral,” raising its target price to £29 from £21.30, in a note dated Monday. The move is underpinned by structural gains in margins, free cash flow, and end-market exposure, especially in mining. The target price implies a potential 16.2% share price return, with a 1.6% dividend yield, bringing the expected total return to 17.8%. The upgrade is supported by a re-evaluation of Weir’s valuation multiple. Citi now applies a 14.5x EV/EBITA multiple to 2026 forecasts, up from 12x, reflecting an ROCE of 18.2%, WACC of 7.6%, tax rate of 27%, and long-term growth assumption of 3.5%. At the time of publication, Weir traded at about 13x 2026E EV/EBITA, compared to peers such as Epiroc at around 18.5x. Weir’s EBITA margin has risen from 16% in 2022 to 18.8% in 2024, with forecasts showing a further increase to 20.6% in 2026. Citi attributes this to £80 million in cost-saving programs, of which more than £50 million remains for 2025–26. These include lean manufacturing, SKU optimization, and ERP integration. Adjusted EBITA in 2025 is forecast at £507 million, rising to £563 million in 2026, with corresponding margins of 19.6% and 20.6% respectively. The Minerals division saw its margin increase from 17.7% in 2021 to 21.1% in 2024. While aftermarket mix contributed, Citi identifies internal efficiency gains as the main driver. Aftermarket share increased from 71% to 75.1% between 2021 and 2024, contributing an estimated 120bps to margin. Notably, margins rose in 2023 despite a drop in aftermarket share (Citi Research, 2025). Weir’s free cash flow profile has also structurally improved. The FCF margin averaged 7.5% from 2015–22 but is now expected to stabilize in the low-teens. Citi models £460 million and £525 million of free operating cash flow in 2025 and 2026, respectively, about 9% above consensus. Inventory optimization, aided by the company’s ERP harmonization, is seen as the key enabler for maintaining working capital at about 20% of sales. Inorganic growth also contributed to the upgrade. Weir’s £624 million acquisition of MicroMine, completed in April 2025, adds a software asset with around 35% EBITA margin and 20–25% revenue growth. It is expected to add 150bps annually to ESCO division growth. Citi does not model synergies but views the acquisition as supportive of digital expansion. Despite these improvements, Weir’s valuation remains below peers. Citi argues the company’s consistent margin and FCF performance support a re-rating. The brokerage adds that Weir’s quality has improved significantly, yet this is not fully priced into the stock.

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Weir to acquire Townley for $150 million, boosting North American presence Investing.com -- Mining technology company Weir Group (OTC:WEGRY) has entered into a binding agreement to acquire Florida-based Townley Engineering and Manufacturing Co. and Townley Foundry & Machine Co. for $150 million (£111 million), according tothe company on Wednesday. The acquisition will strengthen Weir’s manufacturing footprint and market channels in North America, particularly in the phosphate mining sector, which produces minerals used in fertilizers. Townley’s strategic locations across the United States and its distributor partners in Canada and Central America will give Weir access to new customers and enhance its existing North American distribution network. "The acquisition of Townley will significantly enhance our geographic presence in North America, enabling us to serve customers in the region more effectively and sustainably," said Jon Stanton, Chief Executive of Weir. The transaction, which will bring more than 360 Townley employees into Weir, is expected to complete in Q3 2025, subject to U.S. antitrust approvals. Following completion, Townley will be integrated into the North American region within Weir’s Minerals division. The acquisition is expected to be earnings per share accretive in the first full year of ownership, with return on invested capital expected to exceed weighted average cost of capital in 2028. Weir plans to finance the deal using existing debt facilities. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. WEIR: A Bull or Bear Market Play? Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks – 6 model portfolios fueled by AI stock picks with a stellar performance this year.. In 2024 alone, ProPicks' AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies. So if WEIR is on your watchlist, it could be very wise to know whether or not it made the ProPicks lists.

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