Weir Group Shares Plunge Despite Strong 2025 Results

The Weir Group (WEIR.L) witnessed a sharp decline in its share price, plummeting over 8% in early trading despite reporting robust full-year results for the year ended December 31, 2025.

The company reported a 7% increase in orders and a 6% rise in revenue, reaching £2,598m and £2,565m respectively. Adjusted operating profit surged by 15% to £518m, translating to a margin expansion of 150 basis points to 20.2%. This growth was attributed to Performance Excellence savings and higher software margins. However, the increase in the total incident rate (TIR) to 0.52, compared to 0.42 in 2024, raised alarms among investors.

Free operating cash conversion remained strong at 92%, within the company's target range. Net debt to EBITDA stood at 1.9x, in line with guidance following recent acquisition activity, and return on capital employed was reported at 17.9%. The Board has recommended a final dividend of 22.1 pence per share, bringing the total full-year dividend to 41.7 pence per share, a 4% increase year-on-year.

The strong financial performance was driven by several factors, including minesite expansions, debottlenecking projects, and the adoption of new technologies. Original equipment (OE) orders were flat, but underlying OE orders excluding large orders grew by 6%. Aftermarket (AM) orders increased by 8%, reflecting high activity levels and contributions from acquisitions. Micromine, the company's software solution, saw its annual recurring revenue increase by 24%.

The company has made significant strategic progress in advancing its growth strategy, including establishing Software Solutions through the acquisitions of Micromine and Fast2Mine. The addition of Townley strengthened its presence in North American markets, and the ESCO go-direct strategy in Chile was accelerated through the acquisition of ESEL. Weir anticipates further growth in constant currency revenue, operating profit, and operating margins in 2026, driven by brownfield expansion, positive activity levels, and growth in mining software.

Jon Stanton, Chief Executive Officer, acknowledged the safety shortfall, but stated, “In 2025 we made significant strategic progress in advancing our growth strategy with meaningful investments in digital, geographic expansion and product extensions. Together with several new product launches, we have considerably expanded our addressable market of mission critical solutions.”