Vesuvius plc

Vesuvius said revenue increased 1.5% on a constant-currency basis, trading profit was GBP 74 million, and headline EPS was 16.3p, down 0.7% on a constant-currency basis. Free cash flow was GBP 27.5 million versus an outflow of GBP 13.4 million a year earlier, working capital intensity improved from 23.6% to 23.1%, and the net debt-to-EBITDA ratio improved to 1.9 on a pro forma basis. Foundry revenue rose 8.7% and trading profit rose 32.7% on a constant-currency basis. Management expects full-year trading profit to be slightly ahead of 2025 on a constant-currency basis, with FY26 capex now guided to GBP 75 million-GBP 80 million and year-end leverage around 2x.

Patrick André framed the half as operationally disrupted but strategically constructive, emphasizing that pricing leadership, cost reduction, and technology investments are all progressing. He said the steel market recovery outside China is structural rather than cyclical, and expects Europe to begin contributing in the second half with a stronger acceleration in 2027. His tone was confident but pragmatic: the issues are described as identified, fixable, and expected to be resolved by year-end.

Mark Collis focused on the bridge between resilient financials and temporary setbacks. He highlighted GBP 21 million of positive pricing, GBP 16 million of volume decline, GBP 7.4 million of recurring cost savings delivered in H1, and a 50 basis point reduction in working capital intensity. He also raised FY26 capex to GBP 75 million-GBP 80 million, said the underlying tax rate is now expected to be 27%, and noted the company aims to hold net debt around current levels so year-end leverage remains around 2x.

Analysts pressed on Europe’s recovery timing, the durability of lost market share, the strength of MMS integration, and whether pricing pressure in Advanced Refractories could spread beyond Europe. Management said Europe likely starts recovering in the second half, with Q4 as the likely inflection and 2027 as the year of stronger acceleration; they also said the GBP 12.6 million of customer demand not met in H1 is theoretically recoverable, with Flow Control likely to recover fastest. On MMS, management said integration is going very well, synergies are on track to exceed expectations, and they may consider small bolt-on acquisitions if attractive opportunities arise.