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Weir Group PLC (The) (GB:WEIR)
LSE:WEIR
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Weir Group plc (The) (WEIR) AI Stock Analysis

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GB:WEIR

Weir Group plc (The)

(LSE:WEIR)

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Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
3,199.00p
▲(8.15% Upside)
The Weir Group plc receives a strong overall stock score driven primarily by robust financial performance and positive earnings call outcomes. Technical analysis supports a bullish outlook, although valuation metrics suggest the stock is fairly priced. The company's strategic initiatives and market positioning further enhance its growth prospects, despite some challenges such as FX headwinds and tax rates.
Positive Factors
Revenue Growth
The consistent revenue growth and improved operating profit indicate strong demand and effective cost management, supporting long-term financial stability.
Strategic Acquisitions
Strategic acquisitions enhance Weir's market position and digital capabilities, driving sustainable growth and competitive advantage in key sectors.
Margin Expansion
Margin expansion through efficiency programs reflects operational excellence, enhancing profitability and resilience against market fluctuations.
Negative Factors
FX Headwinds
FX headwinds can erode profitability, posing a risk to earnings stability and requiring effective hedging strategies to mitigate impact.
High Tax Rate
A high tax rate reduces net income and cash flow, limiting reinvestment potential and affecting long-term financial flexibility.
Leverage Risks
While acquisitions drive growth, increased leverage can strain financial resources, necessitating careful debt management to maintain stability.

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

Weir Group plc (The) Business Overview & Revenue Model

Company DescriptionThe 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 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: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
The earnings call reflects strong financial performance with significant growth in revenue, profit, and margins. Strategic acquisitions and investments are positioning Weir for future growth. However, challenges such as FX headwinds and high tax rates are noted. Overall, highlights significantly outweigh lowlights.
Q2-2025 Updates
Positive Updates
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.
Negative Updates
FX Headwinds
Profit before tax was GBP 20 million ahead of last year but faced an FX translation headwind of GBP 12 million.
ESCO Order Phasing and Regional Conflicts
ESCO orders were stable, affected by phasing of dredge orders and regional conflicts in the Middle East impacting barge activity.
Margin Headwinds in Second Half
Second half margins are expected to absorb mix shifts and FX translational headwinds.
High Tax Rate
The effective tax rate was reported at 28.6%, influenced by withholding taxes on dividends.
Company Guidance
In the first half of 2025, Weir Group provided guidance that highlighted significant progress in financial performance and strategic development. The company achieved a 4% revenue growth on a constant currency basis with strong aftermarket demand, particularly in copper and gold sectors, driving a 7% increase in aftermarket revenue. Operating profit rose by 17% to GBP 237 million, with operating margins expanding by 220 basis points to 19.8%, underpinned by the Performance Excellence program. Weir upgraded its full-year operating profit margin guidance to around 20%, anticipating continued order and revenue growth in the second half. The company maintained a high level of free operating cash conversion at 62% and is on track to achieve its full-year target of 90% to 100%. Weir also successfully completed strategic acquisitions, including Micromine, and invested in growth initiatives with a focus on sustainability and innovation in mining technology. These efforts are expected to sustain operating margins above 20% and deliver mid- to high single-digit growth through the cycle.

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, though it suggests careful leverage management. The cash flow statement highlights effective capital management and cash generation. Overall, the company is well-positioned in the industrial machinery sector with a solid financial foundation, but it must continue monitoring leverage and cash flow to sustain growth.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.49B2.51B2.64B2.47B1.93B1.96B
Gross Profit1.02B1.02B994.90M909.70M692.10M687.10M
EBITDA486.30M519.00M489.50M420.70M362.80M334.50M
Net Income307.80M312.20M227.90M213.40M153.30M-154.70M
Balance Sheet
Total Assets4.23B3.79B3.89B4.06B3.50B3.54B
Cash, Cash Equivalents and Short-Term Investments439.20M556.40M707.20M691.20M564.40M351.70M
Total Debt1.65B1.09B1.40B1.49B1.34B1.36B
Total Liabilities2.45B1.93B2.19B2.32B2.04B2.24B
Stockholders Equity1.77B1.84B1.69B1.73B1.44B1.30B
Cash Flow
Free Cash Flow345.10M377.40M307.60M215.50M61.00M152.30M
Operating Cash Flow416.30M449.90M394.30M278.20M113.80M224.00M
Investing Cash Flow-707.20M-52.80M-70.60M-75.60M191.90M-69.00M
Financing Cash Flow428.80M-301.90M-322.50M-253.90M-171.70M-37.80M

Weir Group plc (The) Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2958.00
Price Trends
50DMA
2646.92
Positive
100DMA
2583.11
Positive
200DMA
2438.82
Positive
Market Momentum
MACD
70.56
Negative
RSI
68.81
Neutral
STOCH
87.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WEIR, the sentiment is Positive. The current price of 2958 is above the 20-day moving average (MA) of 2823.21, above the 50-day MA of 2646.92, and above the 200-day MA of 2438.82, indicating a bullish trend. The MACD of 70.56 indicates Negative momentum. The RSI at 68.81 is Neutral, neither overbought nor oversold. The STOCH value of 87.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:WEIR.

Weir Group plc (The) Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
£8.12B29.2212.85%1.84%-6.93%18.57%
75
Outperform
£5.85B25.3623.79%1.35%-0.32%-3.96%
74
Outperform
£7.62B24.8917.68%1.21%-1.97%40.55%
71
Outperform
£5.16B31.7614.19%2.37%0.10%-15.33%
66
Neutral
£2.89B29.5916.97%1.90%1.93%-15.07%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
57
Neutral
£8.07B26.0210.69%1.00%-0.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:WEIR
Weir Group plc (The)
2,958.00
868.49
41.56%
GB:IMI
IMI plc
2,374.00
657.74
38.32%
GB:MRO
Melrose
639.60
158.66
32.99%
GB:ROR
Rotork plc
348.60
41.34
13.45%
GB:SMIN
Smiths Group plc
2,504.00
940.01
60.10%
GB:SPX
Spirax Sarco Engineering
7,010.00
406.72
6.16%

Weir Group plc (The) Corporate Events

Executive/Board Changes
Weir Group Announces Board Change
Neutral
Oct 16, 2025

The Weir Group PLC has announced a change in its board, with Penelope Freer stepping down as a Director of Empresaria Group PLC as of October 15, 2025. This change in directorship may influence the company’s governance dynamics and could have implications for its strategic direction and stakeholder relations.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £3200.00 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 TransactionsPrivate Placements and Financing
Weir Group Secures $400 Million for Strategic Acquisition
Positive
Oct 16, 2025

The Weir Group PLC has successfully priced an offering of Australian $400 million in senior notes through its subsidiary, Weir Group (Australian Holdings) Pty Limited. The proceeds from these notes, which are due in 2031 and carry a coupon rate of 5.200% per annum, will be used to partially fund the acquisition of Mining Software Holdings Pty Ltd, known as Micromine. This strategic move is expected to enhance Weir’s capabilities in the mining technology sector, potentially strengthening its market position and offering new opportunities for growth.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £3200.00 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 StrategyM&A Transactions
Weir Group Expands Digital Mining Solutions with Fast2Mine Acquisition
Positive
Sep 23, 2025

Weir Group PLC has announced the acquisition of Fast2Mine, a Brazilian mining software provider specializing in mine management solutions. This acquisition is set to enhance Weir’s existing software portfolio, particularly complementing its Micromine suite, and will bolster the company’s presence in the South American mining software market. The acquisition aligns with Weir’s strategy to expand its digital solutions for mining operations, although it does not alter the company’s financial guidance for the year. This strategic move is expected to strengthen Weir’s market position and offer synergies with its existing products, further advancing its vision for digitally optimized mining operations.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £29.50 price target. To see the full list of analyst forecasts on Weir Group plc (The) stock, see the GB:WEIR Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
Weir Group Executive Sells Shares Amid Regulatory Compliance
Neutral
Aug 28, 2025

The Weir Group PLC announced that Andrew Neilson, a Division President and a person discharging managerial responsibilities, sold 12,325 ordinary shares of the company on 28 August 2025. This transaction, conducted on the London Stock Exchange, is part of regulatory compliance with the UK Market Abuse Regulation, reflecting internal managerial changes and potentially impacting shareholder perceptions.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £2717.00 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 StrategyM&A Transactions
Weir Group Completes Strategic Acquisition of Townley
Positive
Aug 28, 2025

Weir Group PLC has completed the acquisition of Townley Engineering and Manufacturing Co., Inc. and Townley Foundry & Machine Co., Inc., enhancing its presence in North America’s phosphate market. This strategic acquisition, valued at £111 million, is expected to strengthen Weir’s manufacturing capabilities and service network in the region, although it will not alter the company’s financial guidance for 2025.

The most recent analyst rating on (GB:WEIR) stock is a Buy with a £2717.00 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 StrategyFinancial DisclosuresM&A Transactions
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.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
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.

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: Oct 23, 2025