tiprankstipranks
Trending News
More News >
Weir Group PLC (The) (GB:WEIR)
LSE:WEIR
Advertisement

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

Compare
34 Followers

Top Page

GB:WEIR

Weir Group plc (The)

(LSE:WEIR)

Rating:68Neutral
Price Target:
2,730.00p
▲(11.16% Upside)
The Weir Group plc's stock score is primarily driven by strong financial performance and positive earnings call sentiment. The company's robust financial health and strategic initiatives are key strengths, while technical analysis and valuation present some mixed signals. Overall, the company appears well-positioned for growth, although careful management of leverage and cash flow remains crucial.
Positive Factors
Company Execution
Weir's execution has been very strong recently, and the group's end market outlook is improving.
Financial Performance
Weir has delivered a healthy set of 1H25 Interims with EBITA margin guidance raised.
Strategic Acquisitions
Weir announced a proposed £657m acquisition of Micromine, an Australian-based software/digital business, which was received positively.
Negative Factors
Order Performance
Sales were light and orders were slightly below expectations, despite making good year-over-year progress.
Order Volume
The order number is a touch light, which may frustrate a little.
Sales Performance
Sales came in 5% below consensus, which is a bit disappointing.

Weir Group plc (The) (WEIR) vs. iShares MSCI United Kingdom ETF (EWC)

Weir Group plc (The) Business Overview & Revenue Model

Company DescriptionWeir Group plc is a global engineering company headquartered in Glasgow, Scotland, specializing in the design and manufacture of products and services for the mining, oil and gas, and power sectors. The company operates through three main divisions: Minerals, Oil & Gas, and Power & Industrial, providing a range of solutions including pumps, valves, and pressure control equipment. Weir Group is recognized for its innovative technology and commitment to sustainability, helping customers optimize their operations while minimizing environmental impact.
How the Company Makes MoneyWeir Group generates revenue primarily through the sale of its engineered products and services across its three main divisions. The Minerals division, which accounts for a significant portion of revenue, provides equipment and services for mining operations, including slurry pumps and materials handling solutions. The Oil & Gas division offers a range of pressure control equipment and services for upstream and midstream applications. The Power & Industrial division provides products and services for power generation and industrial applications. Key revenue streams include direct sales of products, long-term service agreements, and aftermarket services. Additionally, Weir Group benefits from partnerships with major players in the mining and energy sectors, which enhance its market presence and contribute to stable revenue streams.

Weir Group plc (The) Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: -6.76%|
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial results with revenue and profit growth, successful strategic acquisitions, and efficiency gains from the Performance Excellence program. However, challenges such as tariff impacts, FX headwinds, and OE revenue decline due to order book phasing were noted.
Q2-2025 Updates
Positive Updates
Revenue and Profit Growth
Revenues grew by 4% on a constant currency basis in the first half of 2025, and operating profit increased by 17% to GBP 237 million.
Performance Excellence Program Success
The Performance Excellence program resulted in operating margin expansion of 220 basis points to 19.8%. Cumulative savings target of GBP 80 million by 2026 is on track.
Strong Aftermarket Demand
Aftermarket orders grew by 8%, indicating high levels of mining activity, particularly in copper and gold.
Micromine Acquisition
Successfully completed the acquisition of Micromine, contributing to operating margins and expanding digital solutions.
Strategic Investments
Announced strategic equity investment into CiDRA and the acquisition of Townley, enhancing product offerings and geographic presence.
Dividend Growth
Supported another year of dividend growth, demonstrating resilience in growth.
Negative Updates
Original Equipment Revenue Decline
OE revenue declined due to the phasing of the order book ahead of the delivery of the equipment for Reko Diq project in the second half of the year.
Tariff Impacts
Navigated impacts from U.S. tariffs, indicating a challenge in managing costs and pricing.
Challenges in ESCO Division
Phasing of dredge orders and disruption to barge activity in the Middle East impacted ESCO division performance.
FX Translation Headwinds
Profit before tax faced an FX translation headwind of GBP 12 million, with expectations for further FX headwinds in the second half.
Company Guidance
During the call, Weir Group provided an optimistic outlook for the remainder of 2025, emphasizing several key metrics and strategic initiatives. The company is on track to meet its 2026 cumulative savings target of GBP 80 million, with operating margins expected to sustainably exceed 20%. In the first half of 2025, Weir achieved a 4% revenue growth on a constant currency basis, with a strong book-to-bill ratio indicating continued growth. The company's operating profit rose by 17% to GBP 237 million, with operating margins increasing by 220 basis points to 19.8%. Free operating cash conversion was maintained at 62%, and the company anticipates ending the year within its target range of 90% to 100%. Weir also noted resilience in its performance, with constant currency operating profit up 17%, supporting another year of dividend growth. The acquisition of Micromine and investments in Townley and CiDRA were highlighted as key strategic moves to accelerate growth and enhance digital capabilities. Additionally, the company received recognition for its efforts in sustainability and corporate transparency, further solidifying its commitment to long-term value creation.

Weir Group plc (The) Financial Statement Overview

Summary
The Weir Group plc demonstrates strong financial health, with consistent revenue growth and improved profitability. The balance sheet is stable but requires careful leverage management. Positive cash flow trends highlight effective capital management and cash generation.
Income Statement
75
Positive
The Weir Group plc has shown a consistent revenue growth trajectory over the last few years, with a slight dip in the most recent year. The gross profit margin has been stable, indicating efficient production processes. The net profit margin has also improved significantly, demonstrating effective cost management. EBIT and EBITDA margins are strong, reflecting robust operational efficiency. Overall, the income statement indicates a healthy growth trend with strong profitability metrics.
Balance Sheet
70
Positive
The balance sheet of The Weir Group plc reflects a stable equity position with a moderate debt-to-equity ratio, suggesting a balanced approach to leverage. The return on equity has improved, showcasing better utilization of shareholder funds. The equity ratio indicates a solid foundation of assets being financed by equity. However, the total liabilities remain significant, hinting at potential leverage risks if not managed carefully.
Cash Flow
68
Positive
Weir Group's cash flow analysis shows a positive trend in free cash flow growth, reflecting effective capital expenditure management. The operating cash flow to net income ratio is strong, suggesting good cash generation relative to reported profits. The free cash flow to net income ratio also indicates efficient conversion of earnings into free cash. While the cash flow metrics are positive, careful management is required to maintain this trajectory.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.51B2.64B2.47B1.93B1.96B
Gross Profit1.02B994.90M909.70M692.10M687.10M
EBITDA519.00M489.50M420.70M362.80M334.50M
Net Income312.20M227.90M213.40M153.30M-154.70M
Balance Sheet
Total Assets3.79B3.89B4.06B3.50B3.54B
Cash, Cash Equivalents and Short-Term Investments556.40M707.20M691.20M564.40M351.70M
Total Debt1.09B1.40B1.49B1.34B1.36B
Total Liabilities1.93B2.19B2.32B2.04B2.24B
Stockholders Equity1.84B1.69B1.73B1.44B1.30B
Cash Flow
Free Cash Flow377.40M307.60M215.50M61.00M152.30M
Operating Cash Flow449.90M394.30M278.20M113.80M224.00M
Investing Cash Flow-52.80M-70.60M-75.60M191.90M-69.00M
Financing Cash Flow-301.90M-322.50M-253.90M-171.70M-37.80M

Weir Group plc (The) Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2456.00
Price Trends
50DMA
2537.24
Negative
100DMA
2416.16
Positive
200DMA
2332.08
Positive
Market Momentum
MACD
-25.80
Positive
RSI
37.85
Neutral
STOCH
9.62
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 2456 is below the 20-day moving average (MA) of 2567.50, below the 50-day MA of 2537.24, and above the 200-day MA of 2332.08, indicating a neutral trend. The MACD of -25.80 indicates Positive momentum. The RSI at 37.85 is Neutral, neither overbought nor oversold. The STOCH value of 9.62 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
£7.63B26.1513.99%1.91%6.10%33.05%
76
Outperform
£5.64B24.4823.79%1.16%-0.32%-3.96%
74
Outperform
£2.89B29.4216.97%1.93%1.93%-15.07%
73
Outperform
£5.04B31.0114.19%1.92%0.10%-15.33%
68
Neutral
£6.43B21.0217.68%1.20%-1.97%40.55%
66
Neutral
£2.67B12.993.30%3.25%2.40%-22.21%
61
Neutral
£7.57B24.2610.69%1.07%-0.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:WEIR
Weir Group plc (The)
2,456.00
571.30
30.31%
GB:SMIN
Smiths Group plc
2,320.00
587.26
33.89%
GB:MRO
Melrose
597.80
99.27
19.91%
GB:SPX
Spirax Sarco Engineering
7,065.00
-304.26
-4.13%
GB:IMI
IMI plc
2,260.00
508.32
29.02%
GB:ROR
Rotork plc
342.60
22.28
6.96%

Weir Group plc (The) Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Weir Group Reports Strong Interim Results and Strategic Progress
Positive
Jul 31, 2025

Weir Group PLC has reported strong interim results for the first half of 2025, showcasing significant strategic progress and robust market conditions. The company has completed key acquisitions, including Micromine and Townley, to bolster its digital strategy and market presence. Despite global economic uncertainties, Weir has achieved growth in orders and revenue, driven by high demand in mining markets and effective operational execution. The company has upgraded its operating profit margin guidance to approximately 20% and is on track to meet its full-year growth targets, emphasizing its leadership in sustainable mining solutions.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £2570.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Weir Group Reports Strong Interim Results, Boosts Digital and Market Position
Positive
Jul 31, 2025

The Weir Group PLC reported strong interim results for the first half of 2025, highlighting significant strategic progress and robust market conditions. The completion of the Micromine acquisition accelerates Weir’s digital strategy, while the Townley acquisition enhances its position in the US phosphate market. Weir’s operational excellence has led to an upgraded operating profit margin of approximately 20%, supported by increased demand in mining markets, particularly for copper and gold. The company remains on track to meet its full-year guidance, driven by a focus on sustainable solutions and strong cash conversion.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £2700.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

Business Operations and Strategy
Weir Group Retains CDP ‘A’ Score, Advances Climate Strategy
Positive
Jul 23, 2025

The Weir Group PLC has retained its ‘A-list’ status from CDP for its leadership in corporate transparency and climate change performance, underscoring its commitment to sustainable mining practices. The company is advancing its climate strategy to support a low-carbon future by focusing on energy efficiency, clean energy supply, water management, and reframing climate targets. These efforts aim to align Weir’s operations and supply chain with net zero goals by 2050, enhancing its industry positioning and supporting the decarbonization of critical mineral value chains.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £2570.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Weir Group Expands North American Footprint with Townley Acquisition
Positive
Jun 18, 2025

Weir Group PLC has announced its acquisition of Townley Engineering and Manufacturing Co., Inc. and Townley Foundry & Machine Co., Inc. for £111 million. This strategic move aims to bolster Weir’s manufacturing capabilities and market presence in North America, particularly in the phosphate sector, which is vital for global food security. The acquisition is expected to enhance Weir’s geographic footprint and operational efficiency, aligning with customer needs and supporting population growth through improved fertilizer production. The transaction, anticipated to complete in Q3 2025, will be integrated into Weir’s North American Minerals division and is projected to be earnings accretive in the first full year.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £2570.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

Financial DisclosuresRegulatory Filings and Compliance
Weir Group Announces Change in External Auditor
Neutral
Jun 17, 2025

The Weir Group PLC has announced a change in its external auditor following a competitive tender process. The company’s Audit Committee recommended, and the Board endorsed, the appointment of EY LLP as the new external auditor starting from the year ending December 2026, subject to shareholder approval at the 2026 AGM. PWC LLP, the current auditor, will continue in their role until the conclusion of the 2026 AGM. This change reflects Weir’s commitment to maintaining robust financial oversight and could impact its financial reporting processes.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £2570.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

Regulatory Filings and Compliance
Weir Group CEO Transfers Shares to Spouse’s Account
Neutral
Jun 13, 2025

The Weir Group PLC announced a transaction involving the transfer of 44,533 ordinary shares by Jon Stanton, the Chief Executive Officer, to a nominee account held jointly with his wife, Rachel Stanton. This transfer, conducted at nil consideration, does not alter the aggregate shareholding of Jon Stanton and his closely associated persons. The transaction, compliant with the UK Market Abuse Regulation, signifies internal adjustments rather than any strategic shift, thus maintaining stability in the company’s shareholding structure.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £2570.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Weir Group Secures £40m Contract for Sustainable Tailings Solutions in Chile
Positive
Jun 11, 2025

Weir Group PLC has secured a £40 million contract from Codelco, the world’s largest copper producer, to supply sustainable tailings transport solutions for the Talabre tailings dam expansion in Chile. This project, which will utilize Weir’s GEHO and WARMAN pumps, is expected to enhance the safety and efficiency of tailings management while aligning with Codelco’s sustainability goals. The contract marks the largest order for Weir’s GEHO pumps, highlighting the company’s strong market position and expertise in energy-efficient solutions for large-scale mining operations.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £2570.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

DividendsBusiness Operations and Strategy
Weir Group Executives Increase Stake Through Share Acquisition
Positive
Jun 3, 2025

The Weir Group PLC announced that several key executives, including the CEO, CFO, and Division Presidents, have acquired ordinary shares in the company through a dividend reinvestment plan. This transaction, conducted on the London Stock Exchange, reflects a strategic move by the company’s leadership to increase their stake in the company, potentially signaling confidence in the company’s future performance and aligning their interests with those of shareholders.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £2570.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

Regulatory Filings and Compliance
Weir Group CEO Transfers Shares Without Ownership Change
Neutral
May 23, 2025

The Weir Group PLC announced a transaction involving its CEO, Jon Stanton, who transferred 3,000 ordinary shares to a new nominee account provider without changing the beneficial ownership. This move, compliant with the UK Market Abuse Regulation, does not impact the company’s operations or stakeholder interests as the shareholding remains unchanged.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £2570.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

Regulatory Filings and Compliance
Weir Group Announces Share Transfer by Associated Person
Neutral
May 14, 2025

The Weir Group PLC announced a transaction involving Rachel Stanton, a person closely associated with Jon Stanton, a person discharging managerial responsibilities. Rachel Stanton transferred 117,945 ordinary shares to a new nominee account provider for nil consideration, with no change in beneficial ownership. This transaction, notified under the UK Market Abuse Regulation, does not impact the company’s operations or market positioning, but it ensures compliance with regulatory requirements.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £2570.00 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Weir Group and CiDRA Announce Strategic Partnership to Advance Mineral Processing Technology
Positive
May 12, 2025

The Weir Group PLC has announced a strategic investment and global collaboration with CiDRA Minerals Processing Inc., aiming to accelerate the commercialization of CiDRA’s innovative P29 technology for mineral separation. This partnership is expected to enhance productivity and sustainability in mining operations by developing transformative flowsheet solutions that address challenges such as reduced head grades and water restrictions. The collaboration combines CiDRA’s technological innovation with Weir’s global reach and customer-centric approach, potentially reshaping mineral processing by reducing energy and environmental impacts per tonne of metal produced.

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: Aug 02, 2025