Weir (LON: WEIR), the mining equipment and aftermarket group, said group orders rose 8% in the third quarter and that it remains on track to meet current market expectations for 2026. The update, for the quarter to 30 September, came earlier today.
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On a constant currency basis, Weir said aftermarket orders, the repeat business tied to equipment already in use, rose 10%, of which acquisitions added 3 points. Original equipment orders, for new machinery, rose 3%. ESCO aftermarket orders climbed 14% (10% organic), with mining ground engaging tools and Software Solutions strong, and oil sands and gold strong in North America. Coal, predominantly in Indonesia, was a partial drag.
The weak spot was ESCO original equipment, down 24% as large bucket and truck body orders were phased after a strong first half. In Minerals, delays pushed some larger projects into the fourth quarter. Year-to-date book-to-bill, orders against sales, was 1.10.
Weir also flagged headwinds. The Middle East conflict lifted oil prices and oil sands demand, but hurt phosphate customers, about 4% of group revenue, which are reducing production, with sulphur and ammonia affected. Dredging was reduced with about 90% of large barges in port, and Chile suffered extreme weather in July and August.
Chief executive Andrew Neilson described the quarter this way:
Our performance in the third quarter reflects good underlying momentum in our core mining markets, with customers looking to maximise production in a supportive commodity environment.
Andrew Neilson, Weir
Weir said Performance Excellence savings have reached £80m cumulatively, against a £90m target for 2026. It expects net debt to end the year slightly above its normal range of 0.5 to 1.5 times EBITDA, returning within it during 2027, with net interest expense of about £90m.
The company is guiding to growth in constant currency revenue and operating profit this year, an operating margin above 20% and strong cash conversion, with delivery of its large aftermarket backlog in the fourth quarter the key task.