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Severfield (GB:SFR)
LSE:SFR
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Severfield (SFR) AI Stock Analysis

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GB:SFR

Severfield

(LSE:SFR)

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Neutral 56 (OpenAI - 5.2)
Rating:56Neutral
Price Target:
31.00 p
▲(16.98% Upside)
Action:Reiterated
Date:06/25/26
The score is held back primarily by weakened financial performance, with recent net losses and reduced profitability despite stable revenue and only moderate leverage. Offsetting this, technical signals are relatively strong with price trending above major moving averages and positive momentum indicators. Valuation remains a drag because the company is loss-making (negative P/E) and dividend yield is unavailable.
Positive Factors
Integrated end-to-end service model
Severfield’s vertically integrated delivery—design, off-site fabrication, surface treatment, logistics and on-site erection—creates durable operational control and coordination advantages. This lowers execution risk, supports competitive bid pricing on complex projects and helps capture more value across project life cycles.
Negative Factors
Recent net losses and margin erosion
Switching from multi-year profitability to net losses with ~-8% net margin is a structural concern: it erodes retained earnings, weakens equity and constrains reinvestment. Persistent margin pressure signals cost or pricing issues that could limit sustainable returns absent structural fixes.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated end-to-end service model
Severfield’s vertically integrated delivery—design, off-site fabrication, surface treatment, logistics and on-site erection—creates durable operational control and coordination advantages. This lowers execution risk, supports competitive bid pricing on complex projects and helps capture more value across project life cycles.
Read all positive factors

Severfield (SFR) vs. iShares MSCI United Kingdom ETF (EWC)

Severfield Business Overview & Revenue Model

Company Description
Severfield plc is a leading structural steel company that manages the entire lifecycle of steelwork projects, from initial design and manufacturing to fabrication, construction, and final erection. The company's reach extends across the United Kin...
How the Company Makes Money
Severfield primarily makes money by winning and executing contracts to deliver structural steelwork packages for construction and infrastructure projects. Revenue is generated on a project-by-project basis from the sale of fabricated steel compone...

Severfield Financial Statement Overview

Summary
Mixed fundamentals: revenue has been broadly stable, but profitability deteriorated into net losses in 2025 and deepened in 2026 (net margin ~-8%). Balance sheet leverage has risen to ~0.48 debt-to-equity and equity has declined, though cash flow improved materially in 2026 with positive operating cash flow (~£18m) and free cash flow (~£15m).
Income Statement
44
Neutral
Balance Sheet
56
Neutral
Cash Flow
60
Neutral
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue454.25M450.91M463.46M491.75M403.56M
Gross Profit10.09M219.53M97.46M73.84M51.56M
EBITDA23.57M-877.00K41.07M40.39M34.44M
Net Income-35.61M-14.09M15.90M21.57M15.60M
Balance Sheet
Total Assets363.16M400.90M378.41M369.67M375.48M
Cash, Cash Equivalents and Short-Term Investments24.36M15.52M13.80M11.34M0.00
Total Debt71.05M79.26M42.48M22.35M26.49M
Total Liabilities216.52M217.94M157.66M151.95M171.52M
Stockholders Equity146.64M182.96M220.75M217.72M203.96M
Cash Flow
Free Cash Flow15.17M-8.35M33.81M41.33M-12.13M
Operating Cash Flow18.04M-522.00K45.14M47.80M-6.74M
Investing Cash Flow954.00K-7.04M-37.45M-14.69M-5.54M
Financing Cash Flow-10.34M12.69M-8.63M-17.80M-16.68M

Severfield Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.50
Price Trends
50DMA
26.85
Positive
100DMA
27.39
Positive
200DMA
28.31
Positive
Market Momentum
MACD
0.88
Negative
RSI
73.80
Negative
STOCH
85.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SFR, the sentiment is Positive. The current price of 26.5 is below the 20-day moving average (MA) of 27.58, below the 50-day MA of 26.85, and below the 200-day MA of 28.31, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 73.80 is Negative, neither overbought nor oversold. The STOCH value of 85.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SFR.

Severfield Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£559.00M14.9914.87%1.88%-16.42%23.14%
72
Outperform
£511.64M14.4730.23%3.65%0.53%-8.91%
68
Neutral
£43.62M8.553.92%2.45%29.24%224.63%
64
Neutral
£52.35M39.862.61%7.35%-15.36%-84.62%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
56
Neutral
£94.60M-2.71-8.57%13.07%0.74%-158.15%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SFR
Severfield
32.20
-5.40
-14.36%
GB:BILN
Billington Holdings
405.00
18.09
4.67%
GB:COST
Costain
210.00
65.38
45.21%
GB:GFRD
Galliford Try
521.00
117.46
29.11%
GB:SMJ
J Smart & Co (Contractors)
112.50
-4.40
-3.76%

Severfield Corporate Events

Business Operations and StrategyDividendsFinancial Disclosures
Severfield Targets Margin Rebound After Tough Year and Strategic Reset
Negative
Jun 23, 2026
Severfield reported stable revenue of £454.3m for FY26 but a sharp drop in underlying profit and a statutory loss, as competitive pricing, project delays and lower activity in some core markets weighed on margins. Despite these pressures, the...
Business Operations and StrategyPrivate Placements and Financing
Severfield Secures New Three-Year Refinancing to Bolster Liquidity
Positive
Jun 12, 2026
Severfield plc has refinanced its core debt facilities, signing a new three-year banking agreement with its existing lending syndicate that renews its £60m revolving credit facility, continues its £7.6m term loan to December 2027 and add...
Business Operations and StrategyFinancial Disclosures
Severfield Sets June Date for Full-Year Results and Strategy Briefing
Neutral
Jun 9, 2026
Severfield plc will publish its audited full-year results for the year ended 28 March 2026 on 23 June, when chief executive Paul McNerney and chief financial officer Andrew Page will also brief the market on the group’s strategy. The update,...
Regulatory Filings and Compliance
Severfield Confirms Total Voting Rights and Share Capital Structure
Neutral
Jun 2, 2026
Severfield plc has confirmed that it currently has 296,181,987 ordinary shares of 2.5 pence each in issue, all carrying one vote per share, and that no shares are held in treasury. This update clarifies the company’s total voting rights and ...
Business Operations and StrategyFinancial Disclosures
Severfield Holds FY26 Guidance but Strikes Cautious Tone on FY27 Amid Project Delays
Negative
Mar 31, 2026
Severfield expects underlying profit before tax of about £10.2m for FY26, in line with market expectations, while net debt of roughly £28m will be significantly better than consensus and leave around £39m of facility headroom. The U...
Business Operations and StrategyFinancial Disclosures
Severfield beats debt expectations but guides cautiously amid delayed projects
Neutral
Mar 31, 2026
Severfield plc, the market‑leading structural steel group, expects full‑year 2026 underlying profit before tax of about £10.2m, in line with market forecasts, and net debt of roughly £28m, significantly below consensus, leavi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2026