Weir Group, the Glasgow-based global mining and engineering FTSE 100 firm, said on Thursday it is “redirecting US originated orders to our manufacturing sites in country” as it continues “to monitor and adapt” its business to trade tariff announcements around the world.
“We expect to be able to mitigate the effect of trade tariffs on our guidance albeit the broader economic impact of current US trade policy remains uncertain,” said the Glasgow firm in a “strong” trading update for the first quarter ended March 31, 2025, showing group orders up 5%.
Weir shares rose almost 5%.
The company has about 12,000 employees operating in over 50 countries, with a presence in every major mining region of the world.
Weir said: “… we continue to monitor and adapt our business to the latest trade tariff announcements around the world.
“Across the business, we have already taken steps to adjust our global supply chain, including redirecting US originated orders to our manufacturing sites in country, and proactively addressing pricing with our customers.
“We believe these actions combined will mitigate known potential impacts of increasing global tariffs, albeit the broader economic impact of current US trade policy remains uncertain.”
In its outlook, Weir said: “We have had a strong start to the year, mining markets are positive, and the business is executing well.
“Robust demand for our OE solutions and AM spares, as well as £20m of incremental Performance Excellence savings from our lean and functional transformation initiatives, means we currently see full year trading in line with expectations for growth in constant currency revenue, operating profit and operating margin.
“We expect to be able to mitigate the effect of trade tariffs on our guidance albeit the broader economic impact of current US trade policy remains uncertain.
“We expect free operating cash conversion of between 90% and 100%.
“Further out, the long-term value creation opportunity for Weir is compelling. The fundamentals for our business are highly attractive.
“In addition, we expect the benefits of Performance Excellence will drive further margin expansion and move our operating margins sustainably beyond 20%, while our strong cash generation and balance sheet give us optionality to compound total shareholder returns.”
Weir CEO Jon Stanton said: “I’m delighted with our performance in the first quarter. 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. 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.
“As we near the completion of our acquisition of Micromine, I look forward to welcoming their team to Weir. Through our combined digital technology offering, we are well positioned to drive further productivity and sustainability impact across the global mining industry.
“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.”