Weir Group buoyed by strong first quarter – Daily Business

Glasgow-based mining technology firm Weir Group has reported strong trading in the first quarter, while also taking steps to mitigate the effects of trade tariffs.

High levels of mining activity saw the company’s trading update for the first quarter ended 31 March report original equipment orders (OE) up 5%, demand being driven by debottlenecking and expansion projects at existing mine sites.

Several large equipment orders were booked in the quarter, including £18m in orders for its GEHO® pump solutions to be delivered to a high-grade nickel expansion project in Indonesia.

The firm said it continues to grow its market share with four completed mill pump trials in the period, three of which were successfully converted to WARMAN®.

Aftermarket demand grew 5%, with the minerals division up 9% on the commissioning of new installations, while ESCO saw growth increase by 4%.

In particular, demand for HPGR tyres increased alongside the continued ramp up of newly-commissioned greenfield projects during the quarter.

On the subject of tariffs, the company acknowledged that while it is adjusting its global supply chain and looking at pricing levels with customers, the broader economic impact of current US trade policy remains uncertain.

The interim management statement said that free operating cash conversion is forecast between 90% and 100%.

The Performance Excellence programme, which is designed to cut costs, continues to demonstrate tangible benefits with £35m of savings in the first quarter, keeping Weir on track for cumulative savings of £80m by 2026.

The company also confirmed it is on course to complete the acquisition of Australian firm Micromine in a matter of days, with the deal expected to close week beginning 28 April.

“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.

“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.”