Weir Group (WEGRY)
OTHER OTC:WEGRY
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Weir Group
(OTC:WEGRY)
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Rating:65Neutral
Price Target:
$17.50
▼(-11.75% Downside)
Action:Downgraded
Date:03/08/26
The score is primarily supported by improving operating performance and constructive 2026 guidance (growth, margin expansion, and deleveraging plans). This is tempered by balance-sheet risk from higher leverage and weaker recent cash flow momentum, while technical indicators point to a weak near-term trend despite oversold signals; valuation is moderately supportive.
Positive Factors
Recurring aftermarket revenue
Weir's aftermarket business grew 8% and supplies recurring parts, rebuilds and services tied to an installed base. That durability buffers cyclic OE demand, sustains higher margin consumables revenue, and supports predictable cash flow and customer stickiness across mining cycles.
Negative Factors
Elevated leverage after acquisitions
Net debt/EBITDA rising to 1.9x reflects acquisition-funded growth and raises interest and refinancing sensitivity. Higher leverage reduces financial flexibility should cash conversion slip, increases finance costs, and forces near-term deleveraging priorities that can constrain investment choices.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket revenue
Weir's aftermarket business grew 8% and supplies recurring parts, rebuilds and services tied to an installed base. That durability buffers cyclic OE demand, sustains higher margin consumables revenue, and supports predictable cash flow and customer stickiness across mining cycles.
Read all positive factors
Weir Group (WEGRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.44B
Dividend Yield1.28%
Average Volume (3M)21.57K
Price to Earnings (P/E)14.2
Beta (1Y)1.01
Revenue Growth5.64%
EPS Growth-18.56%
CountryUS
Employees11,444
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.48
Shares Outstanding519,224,100
10 Day Avg. Volume1,141
30 Day Avg. Volume21,570
Financial Highlights & Ratios
PEG Ratio-1.36
Price to Book (P/B)3.96
Price to Sales (P/S)3.00
P/FCF Ratio29.23
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue2.95
Enterprise Value/Gross Profit7.31
Enterprise Value/Ebitda13.85
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Weir Group 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 hi...
How the Company Makes Money
Weir primarily makes money by selling engineered mining equipment and by servicing and supplying those assets over their operating life. A major revenue stream is original equipment sales (e.g., pumps, valves, cyclones and other minerals processin...
Weir Group Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveys a broadly positive operational and financial story: mid-single-digit revenue growth, strong aftermarket performance, 15% operating profit growth, margin expansion to 20.2%, robust cash conversion (92%), meaningful emissions reduction (−31% vs 2019), and strategic M&A that expands software and geographic reach. Near-term weaknesses are largely transitional or one‑off: higher net debt from acquisitions (net debt/EBITDA 1.9x), elevated working capital (22.4% of sales) driven by inventory and tariffs, legacy asbestos exposure ( U.S. entity in Chapter 11), and a slip in total incident rate on safety. Management has clear plans to delever, normalize working capital, complete integration of acquisitions, and continue Performance Excellence while investing in R&D and systems. Overall, highlights outweigh the lowlights and the company appears well positioned for continued growth while managing short-term execution and legacy risks.Positive Updates
Revenue and Orders Growth
Revenue grew 6% (constant currency) to GBP 2.6bn; total orders increased 7% to GBP 2.6bn, driven by strong aftermarket demand and contributions from acquisitions.
Negative Updates
Higher Net Debt Post‑Acquisitions
Net debt-to-EBITDA increased to 1.9x (toward the top end of target range) following significant acquisition activity in 2025, creating near-term deleveraging requirements.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue and Orders Growth
Revenue grew 6% (constant currency) to GBP 2.6bn; total orders increased 7% to GBP 2.6bn, driven by strong aftermarket demand and contributions from acquisitions.
Read all positive updates
Company Guidance
Guidance for 2026 is for another year of revenue and operating profit growth with 50 basis points of operating margin expansion (management’s bridge implies a 20.7% operating margin driven by +110bps from Performance Excellence, +20bps from acquisitions and an ~80bps reinvestment headwind into R&D/IT), mid-single-digit aftermarket revenue growth and continued strong software growth; cash and balance-sheet targets include free operating cash conversion of 90–100%, net interest cost of ~GBP 90m, CapEx and lease spend around 1.3x depreciation, expected exceptional cash costs of ~GBP 25–30m, an effective tax rate of 28%, a return toward net debt/EBITDA of 0.5–1.5x by end‑2026 (from 1.9x post‑acquisitions), and working capital normalizing toward a ~20% of sales target while cumulative Performance Excellence savings are being increased to GBP 90m (GBP 59m delivered to date).Weir Group Financial Statement Overview
Summary
Income Statement
77
Positive
Balance Sheet
58
Neutral
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.51B | 2.51B | 2.64B | 2.47B | 1.93B |
| Gross Profit | 1.01B | 1.02B | 994.90M | 873.90M | 692.00M |
| EBITDA | 581.08M | 519.00M | 489.50M | 422.80M | 361.90M |
| Net Income | 241.49M | 312.20M | 227.90M | 213.40M | 258.50M |
Balance Sheet | |||||
| Total Assets | 4.53B | 3.79B | 3.89B | 4.06B | 3.50B |
| Cash, Cash Equivalents and Short-Term Investments | 508.11M | 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 | 1.90B | 1.84B | 1.69B | 1.73B | 1.44B |
Cash Flow | |||||
| Free Cash Flow | 257.43M | 377.40M | 307.60M | 264.70M | 103.30M |
| Operating Cash Flow | 316.12M | 449.90M | 394.30M | 320.80M | 156.10M |
| Investing Cash Flow | -844.38M | -52.80M | -70.60M | -68.30M | 195.20M |
| Financing Cash Flow | 537.16M | -301.90M | -322.50M | -303.80M | -217.30M |
Weir Group Technical Analysis
Negative
19.83
Price Trends
18.83
Negative
20.19
Negative
19.09
Negative
Market Momentum
-0.88
Positive
32.35
Neutral
13.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEGRY, the sentiment is Negative. The current price of 19.83 is above the 20-day moving average (MA) of 17.99, above the 50-day MA of 18.83, and above the 200-day MA of 19.09, indicating a bearish trend. The MACD of -0.88 indicates Positive momentum. The RSI at 32.35 is Neutral, neither overbought nor oversold. The STOCH value of 13.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WEGRY.
Weir Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $10.04B | 37.82 | 12.67% | ― | 17.39% | 20.78% | |
70 Outperform | $9.55B | 31.85 | 25.19% | 1.28% | 3.28% | -6.52% | |
68 Neutral | $15.52B | 38.94 | 7.18% | ― | -0.51% | -44.42% | |
65 Neutral | $8.44B | 14.17 | 13.42% | 1.28% | 5.64% | -18.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $8.32B | 28.68 | 15.93% | 1.17% | 0.83% | 26.77% | |
59 Neutral | $6.53B | -31.15 | -14.35% | ― | -4.89% | -179.82% |
* Industrials Sector Average
WEGRY
Weir Group
16.31
0.46
2.91%
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91.71%
SPXC
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25.66%
MIDD
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141.52
-10.59
-6.96%
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.