Revenue and Profit Growth
Revenue increased by 4% to GBP 1.2 billion, with operating profit increasing 17% to GBP 237 million despite FX headwinds. Operating margins expanded by 220 basis points to 19.8%.
Strong Order Growth
Orders totaled GBP 1.3 billion, an increase of 8%, driven by high levels of brownfield activity and key orders like GBP 40 million Talabre order.
Performance Excellence Program Success
The program delivered 90 basis points in margin improvement with cumulative savings now of GBP 40 million.
Micromine Acquisition
The acquisition of Micromine, a software business, is expected to enhance Weir's digital platform and is contributing 30 basis points to margin improvement.
Cash Flow and Financial Health
Free operating cash conversion was at 62% and expected to be 90%-100% by year-end. Net debt to EBITDA stands at 2x after strategic acquisitions.
Positive Market Conditions
Mining markets remain positive with strong demand in copper and gold, and governmental policy responses are expected to accelerate project permitting.
Strategic Acquisitions and Investments
Acquisitions like Townley and investments in CiDRA and Micromine are strengthening Weir's market position and expected to be EPS accretive.