The Weir Group (LON:WEIR) Announces Quarterly Earnings Results

The Weir Group (LON:WEIR) announced its quarterly earnings results on Wednesday. The company reported GBX 123.80 earnings per share for the quarter, Digital Look Earnings reports. The Weir Group had a return on equity of 17.01% and a net margin of 12.35%.

Here are the key takeaways from The Weir Group’s conference call:

• Weir delivered a strong financial year with 6% constant-currency revenue growth, operating profit up 15% to £518m and operating margin of 20.2% (+150bps), supporting a 4% dividend increase to 41.7p and 92% free operating cash conversion.
• Management accelerated its growth strategy through self-funded acquisitions (Micromine, Townley, Fast2Mine) and a strategic investment in CiDRA, creating a combined hardware‑and‑software platform with growing cross‑sell pipeline and recurring software revenue momentum.
• Outlook for 2026 targets continued expansion — mid‑single‑digit aftermarket growth, overall revenue and operating profit growth, a further 50bps of margin expansion, and a planned return to a net debt/EBITDA range of 0.5x–1.5x by end‑2026 supported by 90%–100% free operating cash conversion.
• Balance sheet was impacted by 2025 M&A with net debt/EBITDA rising to 1.9x and free cash flow falling to £267m, while near‑term cash outflows include ~£25m–£30m of exceptional acquisition/integration costs and temporary working‑capital build due to inventory and tariffs.
• Operational and sustainability progress includes a 31% reduction in Scope 1 & 2 emissions vs 2019 (ahead of the 2030 target) and cumulative Performance Excellence savings of £59m with an upgraded final target of £90m, though safety incidents rose in 2025 with remediation underway.

The Weir Group Stock Down 9.9%

LON WEIR opened at GBX 3,066 on Wednesday. The stock’s 50 day simple moving average is GBX 3,209.02 and its 200 day simple moving average is GBX 2,909. The company has a debt-to-equity ratio of 93.16, a current ratio of 2.09 and a quick ratio of 1.16. The Weir Group has a one year low of GBX 1,875 and a one year high of GBX 3,580. The firm has a market cap of £7.96 billion, a PE ratio of 25.85, a price-to-earnings-growth ratio of 2.59 and a beta of 1.04.

Analysts Set New Price Targets

A number of analysts have commented on WEIR shares. Citigroup increased their price objective on shares of The Weir Group from GBX 3,300 to GBX 3,700 and gave the company a “buy” rating in a report on Thursday, February 5th. Berenberg Bank raised their target price on shares of The Weir Group from GBX 2,700 to GBX 3,350 and gave the stock a “buy” rating in a research note on Monday, November 10th. Royal Bank Of Canada restated an “outperform” rating and issued a GBX 3,175 target price on shares of The Weir Group in a report on Thursday, November 6th. Deutsche Bank Aktiengesellschaft increased their price objective on shares of The Weir Group from GBX 3,140 to GBX 3,280 and gave the company a “buy” rating in a report on Monday, January 12th. Finally, Shore Capital Group reissued a “hold” rating and set a GBX 2,750 price objective on shares of The Weir Group in a research note on Wednesday, November 5th. Six equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of GBX 3,243.57.

The Weir Group Company Profile

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.