Weir Group (WEGRY) AI Stock Analysis

Weir Group

(Other OTC:WEGRY)

Select Model

Rating:60Neutral

Price Target:$18.50▲(2.32% Upside)

Action:reiterated

Date:10/31/26

The overall score reflects a mix of optimistic management guidance and strong order pipelines, counterbalanced by fundamental and technical headwinds. While core operational efficiency remains a strength, deteriorating short-term cash flows, rising debt levels, and a premium valuation pose moderate risks. The stock's current technical posture also suggests a lack of clear bullish momentum.

Positive Factors

Market PositionMore than 50% share in minerals mill-circuit pumps and high tender and trial win rates indicate embedded customer acceptance and technical differentiation. This can support recurring aftermarket capture, defend market position, and provide a durable base for future equipment growth.

Negative Factors

Elevated LeverageNet debt/EBITDA at 2.2x after the ESEL transaction, alongside higher interest costs, reduces flexibility versus the prior balance sheet. Until leverage declines toward management's target range, debt service and integration demands may constrain investment and cushion against mining-cycle volatility.

Weir Group (WEGRY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $8.90B
Dividend Yield: 1.61%
Average Volume (3M): 69.11K
Price to Earnings (P/E): 25.1
Beta (1Y): 0.97
Revenue Growth: 9.80%
EPS Growth: -11.39%
Country: US
Employees: 12,787
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Weir Group Business Overview & Revenue Model

Company Description

The Weir Group PLC is a global enterprise specializing in the manufacturing and distribution of sophisticated, custom-engineered equipment. Its operations are organized into two primary divisions: Minerals and ESCO. The Minerals division furnishes sp...

How the Company Makes Money

Weir primarily makes money by selling engineered equipment to mining customers and by providing recurring aftermarket support over the operating life of that equipment. Key revenue streams typically include: (1) Original equipment sales: revenue from...

Weir Group Earnings Call Summary

Earnings Call Date:Jul 28, 2026(Q2-2026)|% Change Since:8.51%|Next Earnings Date:Mar 02, 2027

Earnings Call SentimentPositive

The call presents a predominately positive outlook: H1 order momentum (orders +8% CC, OE +10%), a strong H2 order book (book-to-bill 1.12), product and software wins, and clear targets to recover margins (>20% FY) and cash conversion (90%–100% FY). Near-term challenges include production transfer disruptions that deferred deliveries and pressured H1 margins and cash (free operating cash conversion 41%), elevated net debt/EBITDA (2.2x) and modest pricing pressure. Management expects these H1 effects to reverse in H2, supporting full-year guidance.

Positive Updates

Strong Order Growth and Book-to-Bill

Orders grew 8% year-on-year on a constant currency basis; original equipment (OE) orders +10% and aftermarket orders +8%. Q2 aftermarket organic orders in Minerals were up 8% year-on-year. Book-to-bill was 1.12 and the order book increased by circa GBP 150m in H1.

Negative Updates

Production Transfers and Deferred Deliveries

Late-2025 and early-2026 production relocations (rubber parts to Malaysia/India, castings to Americas/Africa) plus unusual demand patterns in Q1/early Q2 caused production replans, deferred deliveries into H2 and added operational complexity.

Company Guidance

The company reiterated full‑year guidance to deliver constant‑currency growth in revenue, operating profit and margins, targeting operating margins sustainably above 20% (H1 was 18.8%, down 100bps) and confirming the GBP 90m cumulative Performance Excellence savings target; it expects free operating cash conversion of 90–100% for the full year (versus 41% in H1), net debt/EBITDA (currently 2.2x) to move back toward the 0.5–1.5x covenant range by year‑end, Micromine ARR growth of >25% for 2026, and proposed an interim dividend of 20p (up 2%), supported by a strong order book (book‑to‑bill 1.12 and H1 order book up ~GBP 150m).

Weir Group Financial Statement Overview

Summary

Solid operating margins and pricing power are offset by declining net income, rising leverage (debt-to-equity increased to 0.94), and a significant 26.5% year-over-year contraction in free cash flow.

Income Statement

74Positive

Balance Sheet

62Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.64B	2.51B	2.51B	2.64B	2.47B	1.93B
Gross Profit	1.04B	1.01B	1.02B	994.90M	873.90M	692.00M
EBITDA	601.48M	592.25M	519.00M	489.50M	422.80M	361.90M
Net Income	263.12M	241.49M	312.20M	227.90M	213.40M	258.50M
Balance Sheet
Total Assets	4.64B	4.53B	3.79B	3.89B	4.06B	3.50B
Cash, Cash Equivalents and Short-Term Investments	386.60M	508.11M	556.40M	707.20M	691.20M	564.40M
Total Debt	1.84B	1.78B	1.09B	1.40B	1.49B	1.34B
Total Liabilities	2.63B	2.62B	1.93B	2.19B	2.32B	2.04B
Stockholders Equity	2.00B	1.90B	1.84B	1.69B	1.73B	1.44B
Cash Flow
Free Cash Flow	235.62M	257.43M	377.40M	307.60M	264.70M	103.30M
Operating Cash Flow	289.35M	316.12M	449.90M	394.30M	320.80M	156.10M
Investing Cash Flow	-307.28M	-844.38M	-52.80M	-70.60M	-68.30M	195.20M
Financing Cash Flow	-55.10M	537.16M	-301.90M	-322.50M	-303.80M	-217.30M

Weir Group Technical Analysis

Technical Analysis SentimentNegative

Last Price18.08

Price Trends

50DMA17.82Negative

100DMA17.29Negative

200DMA18.43Negative

Market Momentum

MACD-0.11Negative

RSI46.78Neutral

STOCH73.03Neutral

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 18.08 is above the 20-day moving average (MA) of 17.32, above the 50-day MA of 17.82, and below the 200-day MA of 18.43, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 73.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WEGRY.

Weir Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

WEGRY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IEX	79Outperform	$17.18B	32.39	13.31%	1.24%	6.93%	14.08%
ITT	75Outperform	$17.75B	38.77	10.35%	0.76%	28.07%	-19.95%
TEX	74Outperform	$6.31B	27.93	4.71%	1.21%	40.10%	-17.18%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLS	63Neutral	$10.02B	39.51	11.35%	1.10%	0.21%	-42.26%
WEGRY	60Neutral	$8.83B	25.06	13.45%	1.61%	9.80%	-11.39%
ASTE	56Neutral	$904.21M	45.66	2.88%	1.32%	18.70%	-57.51%

* Industrials Sector Average

Performance Comparison

WEGRY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
WEGRY	Weir Group	17.12	-1.81	-9.56%
ASTE	Astec Industries, Inc.	39.27	-7.04	-15.21%
FLS	Flowserve	79.01	8.00	11.27%
IEX	Idex Corporation	233.84	67.87	40.89%
ITT	ITT Corporation	198.50	14.41	7.83%
TEX	Terex Corporation	56.15	10.62	23.31%

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 30, 2026

Weir Group AI Stock Analysis