Weir Group half-year results 2026: strong orders underpin guidance

Weir Group PLC delivered an encouraging acceleration in orders during the second quarter, helping the mining technology specialist reiterate its full-year guidance.

The headline demand figures are strong. First-half orders increased by 8% at constant currency to £1,426 million, including growth across both original equipment and aftermarket products.

However, the profit and cash figures require a closer look. Adjusted operating margin fell by 100 basis points, adjusted earnings per share declined by 7%, and free operating cash conversion dropped to 41%.

Management expects these pressures to ease during the second half as the product mix improves, delayed orders are delivered and working capital unwinds.

Weir Group's key half-year figures

Metric	H1 2026	H1 2025	Change
Orders	£1,426 million	£1,320 million	8% at constant currency
Revenue	£1,269 million	£1,195 million	6% reported
Adjusted operating profit	£239 million	£237 million	1%
Adjusted operating margin	18.8%	19.8%	Down 100 basis points
Adjusted profit before tax	£196 million	£213 million	Down 8%
Adjusted earnings per share	54.6p	58.9p	Down 7%
Statutory profit before tax	£175 million	£164 million	Up 7%
Free operating cash conversion	41%	62%	Down 21 percentage points
Net debt	£1,449 million	£1,274 million at December 2025	Up £175 million
Interim dividend	20.0p	19.6p	Up 2%

The contrast between adjusted and statutory profit is worth noting. Statutory profit before tax rose by 7%, mainly because adjusting items were lower than in the previous year. Adjusted profit before tax, which strips out those items, fell by 8% as net finance costs increased.

Orders provide the strongest part of the update

Original equipment orders rose by 10% at constant currency, supported by project conversions, pump trial wins and new products. Aftermarket orders increased by 8%.

Aftermarket refers to replacement parts and services sold after the original equipment has been installed. This business is important because mining customers need to keep essential equipment running, creating recurring demand.

Around 80% of continuing operations orders related to aftermarket products, in line with the previous year. Customer retention for aftermarket parts remained above 90%.

Second-quarter momentum was particularly positive. Group organic orders increased by 10% during the quarter, compared with a 3% decline in the first quarter. Minerals organic orders rose by 11% in Q2, including 8% growth in aftermarket orders.

The group finished June with a book-to-bill ratio of 1.12, up from 1.09. This means orders received were worth more than revenue recognised, supporting the future orderbook.

Demand was strongest across copper, gold, iron ore and oil sands. Weir said more than 2,000 mining projects remained active in its opportunity pipeline, although phosphate, mineral sands and most nickel markets were softer.

Why margins went backwards

Revenue rose by 5% at constant currency, but adjusted operating profit was flat on the same basis. As a result, the adjusted operating margin declined from 19.8% to 18.8%.

Management attributed this to an unfavourable mix between original equipment and aftermarket products, alongside delays in production transfers and the timing of efficiency savings.

The group has been transferring production between manufacturing sites, including rubber parts production from Australia to Malaysia and India. More than 6,500 product lines were involved within Minerals, creating short-term complexity and inefficiency.

Weir says the final production transfers are now on track. Cumulative Performance Excellence savings reached £72 million after a further £13 million was delivered during the half. The company continues to target £90 million of cumulative savings in 2026.

There was a clear difference between the two divisions. Minerals revenue increased by 3%, but adjusted operating profit fell by 5% and its margin declined by 170 basis points to 20.1%.

ESCO performed more strongly, with revenue up 11%, adjusted operating profit up 17% and margin rising by 120 basis points to 21.5%. This reflected efficiencies and contributions from the Micromine and Fast2Mine software businesses.

New technology is supporting market share gains

Weir converted more than 90% of completed Minerals pump trials during the first half and won around 70% of competitive tenders for large slurry pumps.

The company also received orders for 10 ENDURON Optimil Vertical Stirred Mill units. These mills are designed as a more energy-efficient alternative to traditional ball milling and deliver approximately 40% lower energy consumption.

Its new WARMAN MCR2 mill circuit pump produced an operating efficiency improvement of around 20% across three field trials.

Elsewhere, Micromine remains on track to deliver annual recurring revenue growth of more than 25% in 2026. Annual recurring revenue measures predictable subscription or licence income expected to repeat each year.

These results suggest Weir is not relying solely on favourable mining activity. Competitive wins, software growth and new products are also contributing to the order pipeline.

Cash flow and debt are the main watchpoints

Free operating cash conversion fell from 62% to 41%, while free cash flow was only £1 million, down from £43 million.

Working capital increased as Weir built inventory for production transfers and its growing orderbook. Some customers also delayed payments amid heightened uncertainty. Working capital reached 27% of sales, compared with 23% a year earlier.

Net debt increased by £175 million from the end of 2025 to £1,449 million. Net debt to EBITDA rose from 1.9 times to 2.2 times, although this remained below the covenant level of 3.5 times.

The ESEL acquisition, cash-flow phasing and adverse currency movements contributed to the increase. Management expects leverage to move back towards 1.5 times EBITDA by the end of 2026 as second-half cash generation improves.

That recovery is important. Weir is targeting full-year free operating cash conversion of 90% to 100%, meaning the second half must do considerable work.

Dividend rises as full-year guidance is maintained

The interim dividend increased by 2% to 20.0p per share. It is due to be paid on 3 November 2026 to shareholders on the register on 2 October 2026.

Weir continues to expect constant-currency growth in revenue, operating profit and operating margin for the full year. It also expects mid-single-digit organic revenue growth and a full-year margin above 20%.

The investment case coming out of these results is therefore fairly clear. Demand, orders and competitive performance look healthy, while ESCO and the software operations are providing useful growth.

The less comfortable side is that first-half adjusted earnings, cash conversion and returns all declined. Return on capital employed fell from 17.7% to 15.2%, partly because acquisitions increased the group's asset base.

For the full-year commitments to be met, Weir needs its strong orderbook to convert into higher-margin revenue and cash during the second half. The order momentum provides support, but execution around production transfers and working capital remains the key test.

The full figures and accompanying notes are available in the original company announcement.