Weir Group plc (The) (WEIR) AI Stock Analysis

• Market Cap: £6.85B
• Dividend Yield: 1.26%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 29.7
• Beta (1Y): 1.52
• Revenue Growth: -1.97%
• EPS Growth: 40.55%
• Country: UK
• Employees: 11,444
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.65
• Shares Outstanding: 259,612,060
• 10 Day Avg. Volume: 1,038,063
• 30 Day Avg. Volume: 1,075,191
• PEG Ratio: -1.44
• Price to Book (P/B): 3.85
• Price to Sales (P/S): 2.86
• P/FCF Ratio: 27.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £3,619.78
• Price Target Upside: 36.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.36
• Revenue Forecast (FY): £2.78B

• Rating: 64 Neutral
• Price Target: 2,844.00 p ▲(7.00% Upside)
• Action: Downgraded Date: 03/06/26
• Date: Action: Downgraded 03/06/26

The score is led by improving profitability and a constructive earnings outlook with margin expansion guidance, but is held back by elevated leverage/cash-flow consistency concerns and weak near-term technicals. Valuation also looks demanding for the current risk profile.

Positive Factors

Recurring aftermarket revenue

Consistent mid-single-digit aftermarket growth drives recurring, high-margin sales and supports predictable cash flows. A large installed base with steady consumable demand reduces cyclicality from new-equipment cycles and underpins durable revenue and margin resilience over the next 2–6 months.

Margin expansion & improving profitability

Material operating margin improvement into the high teens/20% reflects structural gains from Performance Excellence and better mix toward aftermarket/software. Higher sustained operating margins improve cash generation capacity and give management room to invest, pay down debt, or return capital over multiple quarters.

Strategic M&A and software capability

Targeted, self-funded acquisitions and integration of digital assets broaden addressable markets, add recurring software ARR, and deepen customer lock-in. Building software and hardware adjacencies supports higher-margin recurring revenue and product differentiation over the medium term.

Negative Factors

Elevated leverage post-acquisitions

A sharp rise in leverage to ~1.9x reduces financial flexibility and increases interest expense risk (guidance cites ~£90m net interest). Although management targets deleveraging to 0.5–1.5x, higher debt limits capacity for opportunistic investment and amplifies execution risk until net debt falls.

Inconsistent cash conversion

While free cash conversion can be strong in some years, inconsistent operating cash conversion and a 2025 FCF decline signal weaker cushion against shocks. Variability hampers reliable deleveraging, dividend sustainability and funding of integration costs without recourse to more debt or asset sales.

Working capital & inventory build

Elevated working capital, driven by inventory and safety-stock related to site moves and tariffs, ties up cash and compresses free cash flow. Until working capital normalizes toward the ~20% target, liquidity and cash conversion will remain constrained, slowing deleveraging progress.

Weir Group plc (The) Business Overview & Revenue Model

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.

How the Company Makes Money

Weir primarily makes money by selling mining equipment and by supporting that equipment over its operating life through aftermarket products and services. Key revenue streams include: (1) Original equipment and engineered systems: revenue from the sale of new capital equipment such as slurry pumps and separation/classification equipment (e.g., hydrocyclones) and other engineered solutions used in minerals processing circuits, typically purchased as part of mine builds, expansions, and plant upgrades. (2) Aftermarket (replacement parts, consumables, and service): revenue from ongoing sales of wear parts and consumables (components that require periodic replacement due to abrasion and erosion in mining applications), refurbishment and repair, field service, and maintenance support for Weir’s installed base; this revenue tends to be recurring because mines operate continuously and components wear out on predictable cycles. (3) Digital and productivity offerings: where available, revenue from technology-enabled products and services that help customers monitor equipment condition, improve performance, and reduce downtime, which can be sold as part of equipment packages or as ongoing support to the installed base. Weir’s earnings are influenced by mining capital expenditure (affecting new equipment demand), global production volumes and operating intensity at mines (driving aftermarket demand), and its ability to price and supply high-wear replacement parts and service efficiently through its distribution and service footprint. Information on any specific revenue split percentages, named significant partnerships, or contract terms is null.

Weir Group plc (The) Financial Statement Overview

Summary

Operating performance is improving (stronger gross/operating margins and resilient revenue), but the 2025 leverage step-up and less consistent cash conversion/FCF softness reduce financial flexibility and raise execution risk.

Income Statement

Revenue has been broadly resilient over the last several years, with a solid rebound from 2020 and modest growth in 2025. Profitability has improved meaningfully versus earlier years: gross margin has trended up into the low-40% range and operating margin strengthened into the high-teens in 2025. The key weakness is earnings volatility—net margin stepped down in 2025 versus 2024, despite better operating performance, indicating below-the-line pressure and less consistent net profitability.

Balance Sheet

Equity has grown over time and returns on equity have been consistently positive in recent years, supporting a generally healthy capital base. However, leverage increased notably in 2025: debt rose sharply and debt-to-equity moved back toward ~1.0, which reduces balance-sheet flexibility versus 2024. Assets have expanded, but the higher debt load is the main balance-sheet risk factor at this point in the cycle.

Cash Flow

Cash generation is positive and free cash flow has generally tracked net income at a reasonable level, supporting earnings quality. That said, cash conversion is inconsistent: operating cash flow covers a relatively modest portion of reported earnings in several years, and free cash flow declined in 2025 versus 2024. Overall, cash flow is adequate but not yet showing the stability you would expect from a top-tier industrial compounder.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.56B	2.51B	2.64B	2.47B	1.93B
Gross Profit	1.03B	1.02B	994.90M	909.70M	692.10M
EBITDA	594.10M	519.00M	489.50M	420.70M	362.80M
Net Income	246.90M	312.20M	227.90M	213.40M	153.30M
Balance Sheet
Total Assets	4.54B	3.79B	3.89B	4.06B	3.50B
Cash, Cash Equivalents and Short-Term Investments	509.00M	556.40M	707.20M	691.20M	564.40M
Total Debt	1.78B	1.09B	1.40B	1.49B	1.34B
Total Liabilities	2.62B	1.93B	2.19B	2.32B	2.04B
Stockholders Equity	1.91B	1.84B	1.69B	1.73B	1.44B
Cash Flow
Free Cash Flow	263.20M	377.40M	307.60M	215.50M	61.00M
Operating Cash Flow	323.20M	449.90M	394.30M	278.20M	113.80M
Investing Cash Flow	-863.30M	-52.80M	-70.60M	-75.60M	191.90M
Financing Cash Flow	549.20M	-301.90M	-322.50M	-253.90M	-171.70M

Weir Group plc (The) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2658.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WEIR, the sentiment is Negative. The current price of 2658 is below the 20-day moving average (MA) of 3120.30, below the 50-day MA of 3220.88, and below the 200-day MA of 2816.09, indicating a bearish trend. The MACD of -152.31 indicates Positive momentum. The RSI at 25.73 is Positive, neither overbought nor oversold. The STOCH value of 14.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:WEIR.

Weir Group plc (The) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMI	74 Outperform	£6.28B	20.02	24.91%	1.29%	-0.32%	-3.96%
GDWN	71 Outperform	£1.72B	15.43	33.12%	1.01%	24.42%	103.25%
ROR	67 Neutral	£2.49B	23.57	20.10%	2.04%	1.93%	-15.07%
SMIN	64 Neutral	£6.55B	15.58	13.46%	1.93%	-6.93%	18.57%
WEIR	64 Neutral	£6.85B	29.74	13.42%	1.26%	-1.97%	40.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SPX	61 Neutral	£4.75B	30.76	13.86%	2.46%	0.10%	-15.33%

Weir Group plc (The) Corporate Events

Weir Group Discloses Jon Stanton’s Exit from Imperial Brands Board

The Weir Group PLC has announced a change in external board commitments for its chief executive, Jon Stanton, who has stepped down as a director of Imperial Brands PLC with effect from 10 March 2026. The move may slightly reduce Stanton’s non-Weir responsibilities, potentially allowing greater focus on Weir’s core mining-technology operations and strategic priorities, though the company has not indicated any direct change to its own board composition or governance structure.

The announcement underscores ongoing corporate governance oversight at Weir, ensuring transparency around directors’ external roles in line with UK listing requirements. Investors and other stakeholders are informed that while Stanton’s external directorship has ended, his position at Weir remains unchanged, suggesting continuity in executive leadership and strategic direction for the engineering group.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £35.50 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

Weir Group CFO Receives Vested Share Awards and Sells Portion to Cover Tax

The Weir Group PLC disclosed that restricted share awards granted in 2024 to Chief Financial Officer Brian Puffer under its Share Reward Plan vested on 27 February 2026, with shares released on 4 March 2026 along with additional dividend equivalent shares. Of the 17,063 shares received, 8,040 were automatically sold at £31.00 per share on the London Stock Exchange to cover tax liabilities, leaving Puffer with 9,023 shares and underscoring standard executive compensation and compliance with market abuse regulations.

The transaction reflects routine alignment of executive incentives with shareholder interests through equity-based compensation rather than indicating a change in strategy or outlook. By formally notifying the market of these dealings, Weir demonstrates adherence to regulatory disclosure requirements for persons discharging managerial responsibilities, offering transparency to investors about insider share transactions and their limited impact on the company’s capital structure.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £3705.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

Weir Group lifts margins and accelerates digital mining push on strong 2025

Weir Group reported a robust 2025 performance, with constant-currency orders up 7%, revenue up 6% and adjusted operating profit rising 15%, lifting margins to just over 20%. Growth was driven by strong aftermarket demand, expanding mining activity and high-margin software, including a 24% annualised increase in Micromine recurring revenue, even as statutory profit was weighed by acquisition-related factors and higher net debt.

The company accelerated its growth strategy through acquisitions of Micromine, Fast2Mine, Townley and ESEL, plus new technology partnerships and product launches that expand its addressable market in digital mining, North American phosphates and sustainable tailings solutions. Management expects further revenue growth and margin expansion in 2026, underpinned by additional cost savings from its Performance Excellence programme, full-year benefits from recent deals and long-term demand for critical minerals, positioning Weir as a key productivity partner to the global mining sector.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £4000.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

Weir Group Takes Full Control of Chilean Mining Tools JV ESEL

Weir Group has completed the acquisition of the remaining 50% of its Chile-based joint venture, ESCO Elecmetal Fundición Limitada, giving it full ownership of the manufacturer of high-quality ground engaging tools. The business will be integrated into Weir’s ESCO Division, strengthening its go-direct strategy in South America’s mining sector and deepening customer relationships.

The deal expands Weir’s manufacturing footprint through ESEL’s Chilean foundry, increasing capacity and flexibility across its global network without altering existing revenue, operating profit or leverage guidance. With full operational control, Weir aims to grow market share and reinforce its leadership in the South American mining market while maintaining its previously stated net debt to EBITDA trajectory.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £4000.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

Weir Group Retains Top CDP Climate Score and Updates Net Zero Transition Plan

Weir Group has received an ‘A’ score for climate transparency from CDP for the fourth consecutive year, underscoring its leadership in emissions reduction, climate risk management, and governance as it supports mining customers in scaling production while cutting environmental impact. Alongside this recognition, the company has published an updated climate transition plan setting out its high-level pathway to align with a net zero world through 2030 and 2050, detailing progress toward Science Based Targets for Scope 1 and 2 emissions, advances in energy- and emissions-saving technologies such as high pressure grinding rolls and vertical stirred mills, and strategic work on water stewardship. Weir is also using its position to advocate for stronger, more practical climate frameworks, welcoming recent revisions to the Science Based Targets initiative’s Corporate Net Zero Standard while calling for further reforms to better engage hard-to-abate sectors like mining, reinforcing its role at the centre of the industry’s decarbonisation efforts.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £3639.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

Weir and Olayan Seal Joint Venture to Target Saudi Arabia’s Expanding Mining Sector

The Weir Group PLC and Olayan Saudi Holding Company have signed a shareholders’ agreement to create a joint venture in Saudi Arabia to supply advanced mining technology and integrated solutions to the kingdom’s fast-growing mining sector. Announced at the Future Minerals Forum in Riyadh, the venture is expected to be operational by the end of the first quarter of 2026, subject to government approvals, and is designed to combine Weir’s global mining technology leadership with Olayan’s local market expertise to build a localized mining value chain, strengthen service to regional customers and support Saudi Arabia’s Vision 2030 economic diversification and industrial development goals.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £3350.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.