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

• Market Cap: £7.97B
• Dividend Yield: 1.26%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 29.7
• Beta (1Y): 1.32
• Revenue Growth: -1.97%
• EPS Growth: 40.55%
• Country: UK
• Employees: 11,444
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.67
• 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: £3,664.22
• Price Target Upside: 18.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.39
• Revenue Forecast (FY): £2.79B

• Rating: 64 Neutral
• Price Target: 3,311.00p ▲(7.01% 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

Strong aftermarket growth provides a recurring, high-margin revenue stream tied to mine operating intensity rather than new capital projects. This drives predictable replacement-parts demand, supports gross margins and cash flows over cycles, and reduces revenue volatility from lumpier OE project timing.

Sustained margin expansion

Material margin expansion into the ~20% range reflects improved pricing, mix and Performance Excellence cost savings. Higher structural operating margins increase earnings durability, provide funding for investments and deleveraging, and improve returns even if top-line growth moderates.

Digital/software recurring revenue growth

Rapidly growing, high-retention software ARR diversifies earnings toward subscription economics with strong gross margins and stickiness. This enhances recurring revenue mix, improves predictability and lifetime customer value, and supports long-term margin resilience outside cyclical equipment sales.

Negative Factors

Elevated leverage after acquisitions

A near-2.0x net leverage ratio reduces balance-sheet flexibility and increases interest expense risk (guidance implies ~£90m net interest). Higher leverage constrains capital allocation, raises refinancing and covenant risks, and makes execution on deleveraging plans a critical near-term priority.

Inconsistent cash conversion and weaker FCF

Variable operating cash conversion and a recent FCF decline reduce the company's ability to reliably fund capex, M&A integration and debt paydown. Even with targets for normalized conversion, persistence of variability undermines forecasts and increases execution risk on dividends, buybacks and deleveraging.

Cyclicality and OE order phasing

Revenue and margins remain exposed to the timing of large mining projects and capex cycles, producing lumpy OE orders and deliveries. That structural cyclicality can depress growth and utilization in down phases, making consistent multi-period earnings and cash-flow delivery more challenging despite aftermarket resilience.

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 Group generates revenue primarily through the sale of its specialized equipment and services to the mining and oil & gas industries. Key revenue streams include the sale of pumps, valves, and other engineered products, as well as aftermarket services that provide maintenance and support for its equipment. The company also benefits from long-term contracts and strategic partnerships with major industry players, which enhances its market position. Additionally, Weir invests in research and development to innovate and improve its product offerings, positioning itself to capture growth opportunities in emerging markets and sectors focused on sustainability.

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: Neutral
• Last Price: 3094.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WEIR, the sentiment is Neutral. The current price of 3094 is below the 20-day moving average (MA) of 3437.30, below the 50-day MA of 3222.76, and above the 200-day MA of 2788.71, indicating a neutral trend. The MACD of 6.57 indicates Positive momentum. The RSI at 32.49 is Neutral, neither overbought nor oversold. The STOCH value of 13.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	75 Outperform	£6.78B	22.91	23.79%	1.29%	-0.32%	-3.96%
GDWN	73 Outperform	£1.79B	15.43	35.23%	1.01%	24.42%	103.25%
SPX	72 Outperform	£5.46B	17.56	14.19%	2.46%	0.10%	-15.33%
ROR	66 Neutral	£3.04B	14.34	16.97%	2.04%	1.93%	-15.07%
SMIN	66 Neutral	£8.17B	29.17	12.85%	1.93%	-6.93%	18.57%
WEIR	64 Neutral	£7.97B	29.74	17.68%	1.26%	-1.97%	40.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Weir Group plc (The) Corporate Events

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.

Weir Group Announces New Non-Executive Director Appointment

The Weir Group PLC has announced the appointment of Penelope Freer as a Non-Executive Director at Mercia Asset Management PLC, effective December 15, 2025. This appointment reflects Weir Group’s strategic focus on strengthening its leadership team and potentially enhancing its influence and connections within the asset management sector, which could have positive implications for its stakeholders.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £32.90 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 Acquires Full Control of Chilean Joint Venture ESEL

Weir Group PLC has announced its acquisition of the remaining 50% share in its Chile-based joint venture, ESCO Elecmetal Fundición Limitada (ESEL), for £56 million. This strategic move is set to enhance Weir’s manufacturing capabilities and market presence in South America, particularly in the mining sector. The acquisition aligns with Weir’s go-direct strategy, allowing the company to transition to a direct-to-customer model in Chile, thereby expanding its foundry capacity and optimizing its global manufacturing footprint. The transaction is expected to complete in Q1 2026 and will be financed from existing debt facilities, with no impact on Weir’s net debt guidance for 2025 and 2026.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £3240.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.