Vesuvius (LON:VSVS) Posts Earnings Results

Vesuvius (LON:VSVS) posted its quarterly earnings results on Thursday. The company reported GBX 16.30 EPS for the quarter, Digital Look Earnings reports. Vesuvius had a net margin of 2.88% and a return on equity of 4.75%.

Here are the key takeaways from Vesuvius’ conference call:

• First-half performance was resilient but broadly flat. Revenue rose 1.5% on a constant-currency basis to offset a volume decline, while trading profit remained at £74 million and EPS fell 0.7%.
• Operational problems in the Steel Division—including supplier quality issues, deficient maintenance and staffing gaps in the U.S., plus ramp-up difficulties at the Vizag plant in India—reduced first-half trading profit by about £8 million. Management expects these issues to be resolved by year-end, but market share recovery may take time, particularly in Advanced Refractories.
• Management expects full-year trading profit to be slightly ahead of 2025 on a constant-currency basis, supported by structural steel-market growth outside China, improving European demand from the fourth quarter, pricing gains and the recovery of lost volumes.
• The Foundry Division delivered strong growth, with revenue up 8.7% and trading profit up 32.7%; the MMS acquisition is integrating ahead of expectations, generating £4 million of first-half profit versus £6 million annualized at acquisition and with further synergies planned.
• Cash generation improved substantially, with free cash flow of £27.5 million versus an outflow of £13.2 million a year earlier, while working-capital intensity and leverage declined. The company also delivered £7.4 million of recurring cost savings and maintained its interim dividend at 7.1 pence per share, although higher 2026 capital expenditure guidance of £75–80 million will temper deleveraging.

Vesuvius Stock Performance

Vesuvius stock traded down GBX 0.20 during mid-day trading on Thursday, hitting GBX 364.80. 1,744,750 shares of the company’s stock traded hands, compared to its average volume of 1,533,624. The company has a quick ratio of 1.20, a current ratio of 2.35 and a debt-to-equity ratio of 57.10. Vesuvius has a one year low of GBX 346.60 and a one year high of GBX 507.50. The firm has a 50 day moving average price of GBX 452.21 and a 200 day moving average price of GBX 446.22. The company has a market cap of £898.13 million, a PE ratio of 17.45, a price-to-earnings-growth ratio of 0.57 and a beta of 1.15.

Analysts Set New Price Targets

A number of research analysts recently issued reports on VSVS shares. Peel Hunt restated a “buy” rating and set a GBX 525 price objective on shares of Vesuvius in a research report on Monday. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a GBX 440 target price on shares of Vesuvius in a research note on Tuesday. Finally, Jefferies Financial Group reissued a “buy” rating and set a GBX 520 price target on shares of Vesuvius in a report on Monday. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Vesuvius has an average rating of “Moderate Buy” and an average target price of GBX 467.

Vesuvius Company Profile

We are a global leader in metal flow engineering, providing a full range of engineering services and solutions to its customers worldwide, principally serving the steel and foundry industries.