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1. Company Snapshot

1.a. Company Description

The Weir Group PLC produces and sells highly engineered original equipment worldwide.It operates in two segments, Minerals and ESCO.The Minerals segment offers slurry handling equipment and associated aftermarket support services for abrasive high-wear applications used in the mining and oil sands markets.


The ESCO segment provides ground engaging tools for mining machines.This segment also produces smart and rugged cameras that monitor and provide valuable and timely data on equipment performance, faults, payloads, and rock fragmentation.The company offers its products under the Accumin, Aspir, Cavex, Delta Industrial, Enduron, Envirotech, Floway, GEHO, Gemex, Hazleton, Hydrau-Flo, R.


Wales, Isodry, Isogate, Lewis, Linatex, Multiflo, Synertrex, Stampede, Trio, Vulco, FusionCast, ESCO, Motion Metrics, and Warman brands.The company was founded in 1871 and is headquartered in Glasgow, the United Kingdom.

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1.b. Last Insights on WEIR

The Weir Group's recent narrative has been influenced by diverging analyst views, with some hiking targets to £38.00 and others trimming them by £0.50 to £3.00, as reported on April 21. This shift in sentiment may be attributed to the company's modest revenue growth and margin expansion, as highlighted in its recent earnings call. Additionally, the industry's growth prospects, driven by increasing demand for smart and sustainable mining services, may be tempered by rising debt and capital return challenges, as noted in the metal mining support activities market report.

1.c. Company Highlights

2. Weir Group's Strong 2025 Performance Sets Stage for Continued Growth

Weir Group delivered a robust financial performance in 2025, with 6% constant currency revenue growth to GBP 2.6 billion, driven by high demand in aftermarkets, strong execution on the OE order book, and contributions from acquisitions. Operating profit increased by 15% to GBP 518 million, with operating margins expanding by 150 basis points to 20.2%, exceeding the 20% target a year earlier. The company's actual EPS came out at 0.667, slightly below estimates of 0.671. Free operating cash conversion was 92%, within the target range of 90-100%.

Publication Date: Mar -05

📋 Highlights
  • Revenue & Profit Growth:: GBP 2.6 billion revenue (+6% C-C), GBP 518 million operating profit (+15%) with 20.2% margin expansion (150 bps).
  • Divisional Performance:: Minerals division GBP 406 million profit (+11%) and ESCO GBP 152 million profit (+22%), both with 200+ bps margin gains.
  • Emissions Reduction:: 31% drop in Scope 1/2 emissions since 2019, surpassing 2030 SBTI target of 30%.
  • Margin & Cash Flow Guidance:: 50 bps margin expansion expected in 2026, free operating cash conversion 90–100%, and GBP 90 million net interest cost forecast.
  • Strategic Acquisitions & Growth:: GBP 40 million Codelco order, Micromine/Escada acquisitions, and GBP 90 million PE savings target achieved (GBP 113 million cost).

Segmental Performance

The Minerals division delivered an 11% increase in operating profit to GBP 406 million, with a 100 basis point margin expansion to 21.9%. ESCO division's operating profit increased by 22% to GBP 152 million, with margins expanding by 260 basis points to 21.4%. The company's growth strategy, including self-funded acquisitions and partnerships in digital, geographic expansion, and product extensions, drove significant strategic progress.

Growth Outlook and Guidance

The company expects mid-single-digit organic growth in 2026, driven by a positive demand environment across the global mining and metals complex. Analysts estimate next year's revenue growth at 6.2%. Weir aims to return to its normal operating range of 0.5-1.5x net debt-to-EBITDA by the end of 2026 and expects 50 bps margin expansion, driven by ongoing benefits of performance excellence and continuous improvement.

Valuation and Returns

With a P/E Ratio of 25.6 and EV/EBITDA of 18.6, the market appears to be pricing in a certain level of growth and profitability. Weir's ROIC is 10.86%, and ROE is 17.01%, indicating a decent return on capital. The Net Debt / EBITDA ratio is 2.49, which is relatively high, but the company is working to reduce it. The Dividend Yield is 1.18%, which may not be particularly attractive, but the Free Cash Flow Yield is 4.41%, suggesting a more compelling valuation.

Strategic Progress and M&A

The company made significant progress in advancing its growth strategy, including the acquisitions of Micromine, Townley, and Fast2Mine, and established a joint venture agreement with Olayan in Saudi Arabia. Weir's M&A pipeline is focused on smaller bolt-ons, particularly in software, with a strong pipeline and first incremental license sales from a Tier 1 customer.

Commodity Exposure and Outlook

Key mineral exposures driving growth include gold, copper, and iron ore, with a diversified pipeline of opportunities across various commodities. The company sees a positive demand environment across the global mining and metals complex, driven by geopolitical uncertainty, long-term demand outlook, and the shift towards green steel.

3. NewsRoom

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The Weir Group Q1 Earnings Call Highlights

Apr -30

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Jim Cramer Says “Alphabet Has a Mosaic Like None Other”

Apr -27

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Why The Narrative Around Weir Group (LSE:WEIR) Is Shifting As Analyst Views Diverge

Apr -21

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How The Weir Group (LSE:WEIR) Narrative Is Shifting As Analyst Targets Converge In The Mid £30s

Apr -06

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How The Weir Group (LSE:WEIR) Narrative Is Shifting As Analyst Targets Recalibrate

Mar -23

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How The Weir Group (LSE:WEIR) Investment Story Is Shifting With New Analyst Valuations

Mar -07

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Weir Group PLC (WEGRY) Full Year 2025 Earnings Call Highlights: Strong Revenue Growth and ...

Mar -07

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The Weir Group H2 Earnings Call Highlights

Mar -04

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.47%)

6. Segments

Minerals

Expected Growth: 6%

The Weir Group PLC's Minerals segment growth is driven by increasing demand for commodities, urbanization, and infrastructure development. Rising adoption of electric vehicles and renewable energy technologies boosts demand for minerals like copper, lithium, and nickel. Additionally, Weir's innovative solutions and services, such as its Trio comminution products, enhance mining efficiency and productivity, further supporting growth.

ESCO

Expected Growth: 4%

ESCO's 4% growth driven by increasing demand for energy-efficient solutions, rising adoption of digital technologies, and growing need for predictive maintenance in the oil and gas industry. Additionally, Weir Group's expansion into new markets and strategic partnerships contribute to ESCO's growth.

7. Detailed Products

Minerals

The Weir Group PLC provides a range of minerals processing equipment and services, including crushers, screens, and pumps, to the mining industry.

Oil and Gas

The company offers a range of products and services to the oil and gas industry, including pumps, valves, and wellhead equipment.

Power and Industrial

The Weir Group PLC provides a range of products and services to the power and industrial markets, including pumps, valves, and compressors.

Flow Control

The company offers a range of flow control products, including valves, pumps, and actuators, to the oil and gas, power, and industrial markets.

8. The Weir Group PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for The Weir Group PLC is medium due to the availability of alternative products and services in the mining and industrial sectors.

Bargaining Power Of Customers

The bargaining power of customers for The Weir Group PLC is low due to the company's strong brand reputation and the lack of buyer concentration in the industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers for The Weir Group PLC is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some bargaining power.

Threat Of New Entrants

The threat of new entrants for The Weir Group PLC is low due to the high barriers to entry in the industry, including the need for significant capital investment and technical expertise.

Intensity Of Rivalry

The intensity of rivalry for The Weir Group PLC is high due to the presence of several established competitors in the industry, leading to a competitive market environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.60%
Debt Cost 6.42%
Equity Weight 56.40%
Equity Cost 10.95%
WACC 8.97%
Leverage 77.30%

11. Quality Control: The Weir Group PLC passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Burckhardt Compression

A-Score: 5.7/10

Value: 4.6

Growth: 7.8

Quality: 7.5

Yield: 5.0

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Krones

A-Score: 5.6/10

Value: 5.5

Growth: 6.9

Quality: 6.2

Yield: 3.1

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Wärtsilä

A-Score: 5.5/10

Value: 2.4

Growth: 6.4

Quality: 7.2

Yield: 3.8

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Weir

A-Score: 5.4/10

Value: 2.6

Growth: 6.1

Quality: 6.1

Yield: 1.9

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Rational

A-Score: 4.6/10

Value: 1.1

Growth: 6.4

Quality: 8.9

Yield: 2.5

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Pentair

A-Score: 4.5/10

Value: 1.8

Growth: 4.9

Quality: 7.5

Yield: 1.9

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.0$

Current Price

26.0$

Potential

-0.00%

Expected Cash-Flows