Weir Group reports solid trading in first quarter

(Sharecast News) - Weir Group reported continued strong trading in the first quarter on Thursday, underpinned by high levels of mining activity and robust demand for both original equipment and aftermarket services. The FTSE 100 mining technology company said group original equipment orders rose 5%, supported by an £18m order for GEHO pumps and steady conversion of its brownfield pipeline.

Aftermarket orders also increased 5%, with the minerals division up 9% on the commissioning of new installations, while ESCO saw 4% growth as mine-specific challenges eased.

The group reaffirmed its full-year guidance, citing a strong order book and favourable activity levels.

It said it expected growth in constant currency revenue, operating profit, and margin, with free operating cash conversion forecast between 90% and 100%.

Weir also confirmed that its Performance Excellence programme remained on track to deliver £80m in cumulative savings by 2026, adding that the acquisition of Micromine was expected to complete in the week beginning 28 April.

"I'm delighted with our performance in the first quarter - we began the year with a record pipeline, which is converting in line with our expectations as customers capitalise on supportive prices for commodities enabling the energy transition," said chief executive officer Jon Stanton.

"I am especially pleased with the growth in aftermarket orders which reflect the strength of our business model as newly installed equipment, particularly HPGRs, are commissioned.

"As we near the completion of our acquisition of Micromine, I look forward to welcoming their team to Weir."

Stanton said that, through the companies' combined digital technology offering, they were "well positioned" to drive further productivity and sustainability impact across the global mining industry.

"Looking forward, we are executing well against the commitments set out in our equity case.

"We expect orders to continue to develop positively, and we reiterate our 2025 guidance of growth in constant currency revenue and operating profit, together with achievement of our margin and cash conversion targets."

Reporting by Josh White for Sharecast.com.