Shares in The Weir Group PLC (LSE:WEIR) declined on Thursday after the mining equipment manufacturer reported a softer start to the year, with first-quarter orders falling short of expectations despite the company reaffirming its full-year outlook.
Orders for the three months to March 31 dropped 3% on an organic constant currency basis. Original equipment orders slipped 2%, while aftermarket demand declined 3%.
Minerals and ESCO divisions show mixed performance
The The Weir Group said its Minerals division saw orders decrease 3%, reflecting a 6% fall in original equipment orders due to project timing, alongside a 3% decline in aftermarket demand linked to temporary mine disruptions in Asia-Pacific and Africa.
In the ESCO division, total orders edged down 2%. However, original equipment orders surged 49% amid strong global demand for mining buckets, partially offset by a 5% decline in aftermarket orders.
Investor concerns drive sharp share price reaction
The stock dropped 7.4% following the update, as investors reacted to weaker order momentum relative to peers. The company reported a year-to-date book-to-bill ratio of 1.14.
CEO Jon Stanton commented, “During the first quarter, the Group executed strongly against our strategic growth agenda, completing the acquisition of ESEL and integrating at pace those acquisitions completed last year.”
Full-year guidance maintained despite slower start
Weir reiterated its expectations for 2026, forecasting growth in constant currency revenue, operating profit, and operating margin. It also expects free operating cash conversion to range between 90% and 100%.
Management indicated that both revenue and profit will be weighted toward the second half of the year, in line with seasonal patterns seen in 2025.
Cost savings and leadership transition underway
The company’s Performance Excellence programme has delivered cumulative savings of £66 million, keeping it on track to meet its upgraded £90 million target by 2026.
Separately, Weir announced that Stanton will step down as CEO on August 1 after a decade in the role. He will be succeeded by Andrew Neilson, currently President of the Minerals division.
More about The Weir Group
The Weir Group PLC is a UK-based engineering company specialising in mining equipment and services. Its products support minerals processing and mining operations worldwide, with a focus on improving efficiency, productivity, and sustainability for its global customer base.
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