Weir profit rises to £411m as revenue tops £2.6bn

Weir Group, the Glasgow-based global mining and engineering FTSE 100 firm, said its 2023 revenue from continuing operations rose 7% to £2.636 billion and adjusted profit before tax rose 18% to £411 million.

Full year dividend will rise 18% to 38.6p.

Weir has 12,000 employees operating in over 60 countries, with a presence in every major mining region of the world.

In its outlook, Weir said: “We begin 2024 with a strong order book and positive ore production trends in our mining markets.

“These trends, coupled with the impact of declining grades and installed base expansion, are driving increased demand for our AM spares and expendables.

“We are also seeing good momentum in demand for our OE solutions, as customers focus on improving the efficiency and sustainability of existing assets.

“In 2024, this continued favourable backdrop in mining, together with softer year-on-year order comparatives in oil sands and infrastructure, underpins our confidence in delivering growth in constant currency revenue, profit and operating margins …

“Further out, the long-term value creation opportunity for Weir is compelling. The fundamentals for our business are highly attractive, underpinned by long-term structural growth trends in our mining markets, and our technology strategy which is focused on enabling sustainable mining …”

Weir Group CEO Jon Stanton said: “Weir is delivering on the compelling value creation opportunity we set out as a focused mining technology company.

“Our unique capabilities are enabling us to capitalise on the structural growth in demand for critical metals and the transition to more sustainable mining. In parallel, through Performance Excellence we are optimising our operations and driving efficiencies. 

“In 2023 we made significant progress against these goals, taking advantage of positive mining production trends to win market share and grow orders in our mining aftermarket business, while making good progress with our technology focused growth initiatives.

“We executed well, delivering strong growth in revenue and profit, expanding operating margins in excess of our 2023 target, achieving consistent cash conversion and significant improvement in return on capital employed.

“As we go into 2024, we have a growing installed base, a strong order book and ore production trends in our mining markets are positive.

“We expect to deliver another year of growth in revenue, profit and cash generation, and to further expand our operating margins with progress towards our 2026 target of 20%.”