Weir Group AI Stock Analysis
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Weir Group (WEGRY) AI Stock Analysis
Weir Group
(Other OTC:WEGRY)
The score is driven primarily by improving multi-year operating profitability and still-positive free cash flow, tempered by higher leverage and weaker recent cash flow momentum. Technicals are neutral-to-soft with limited trend strength, valuation is somewhat expensive given the P/E and modest yield, and the latest earnings call was constructive on orders and guidance but flagged near-term cash/margin pressure and elevated leverage.
Weir Group (WEGRY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $8.34B
- Dividend Yield
- 1.75%
- Average Volume (3M)
- 79.20K
- Price to Earnings (P/E)
- 23.4
- Beta (1Y)
- 1.03
- 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
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.
Q2-2026 Updates
Positive Updates
Negative Updates
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
Operating profitability has improved over multiple years (gross margin ~40%, EBIT margin ~19%) and free cash flow remained positive (> $250M) with decent earnings support (~81% of net income). Offsetting this, leverage stepped up materially in the latest year (debt-to-equity ~0.94 vs ~0.59) and cash flow momentum weakened (operating cash flow down and free cash flow growth sharply negative), reducing financial flexibility.
Income Statement
77PositiveBalance Sheet
58NeutralCash Flow
60Neutral| 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
Price Trends
Market Momentum
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 15.81 is below the 20-day moving average (MA) of 16.89, below the 50-day MA of 17.36, and below the 200-day MA of 18.24, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 39.14 is Neutral, neither overbought nor oversold. The STOCH value of 5.05 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
Overall Rating
IEX79Outperform
TEX74Outperform
ITT71Outperform
FLS63Neutral- WEGRY61Neutral
ASTE49Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IEX | 79Outperform | $17.63B | 32.86 | 13.31% | 1.22% | 6.93% | 14.08% |
| TEX | 74Outperform | $6.48B | 28.55 | 4.71% | 1.18% | 40.10% | -17.18% |
| ITT | 71Outperform | $19.18B | 43.91 | 9.10% | 0.70% | 35.82% | -19.39% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| FLS | 63Neutral | $10.80B | 41.89 | 11.35% | 1.04% | 0.21% | -42.26% |
| WEGRY | 61Neutral | $8.18B | 23.41 | 13.45% | 1.75% | 9.80% | -11.39% |
| ASTE | 49Neutral | $863.66M | 75.06 | 1.70% | 1.35% | 13.78% | -75.79% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| WEGRY | Weir Group | 15.81 | -2.43 | -13.32% | |
| ASTE | Astec Industries, Inc. | 38.64 | -4.74 | -10.93% | |
| FLS | Flowserve | 83.66 | 17.29 | 26.05% | |
| IEX | Idex Corporation | 238.03 | 75.77 | 46.70% | |
| ITT | ITT Corporation | 214.59 | 31.35 | 17.11% | |
| TEX | Terex Corporation | 57.56 | 12.31 | 27.22% |
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