Trading Statement
Summary by AI BETAClose X
5 November 2026
Vesuvius plc - Autumn trading update
Vesuvius plc, a global leader in molten metal flow engineering and technology, announces the following update for the period 1 July to 30 September 2026.
Summary
· Steel production outside China, Ukraine, Russia and Iran increased by 3.1% in the 9 months to 30 September 2026
· Markets for our Foundry business continue to show growth in China and India, and to improve in North America, while Europe remains subdued
· Trading in our Flow Control and Foundry business units is ahead of the same period last year, year-to-date, and in line with our expectations:
o In Flow Control, strong net positive pricing is offsetting lower volumes
o In Foundry, the business continues to benefit from the integration of the MMS business together with growth in the underlying business
· Trading in Advanced Refractories remains challenging, particularly in Europe
· We are making good progress in addressing the operational issues in North America, with the production backlog significantly reduced and expected to be substantially eliminated by the year-end
· We remain on track to deliver cost savings of at least £55m by 2028, with c.£10m to be delivered in 2026
· Working capital intensity continues to improve and leverage remains similar to the position at the half-year
· Trading profit in FY26 is expected to be broadly in line with FY25 trading profit on a constant currency basis
Market conditions
Steel production in the World outside China, Ukraine, Russia and Iran increased by 3.1% in the year to 30 September 2026, with positive momentum seen in North America, India and South-East Asia. Steel production volumes in EMEA and South America remain below prior year levels.
The markets for our Foundry business continue to show growth in China and India, and are improving in North America. Against this backdrop, markets in Europe remain subdued.
Trading
Revenue and Trading Profit year-to-date in Flow Control is ahead of last year on a constant currency basis, and in line with our expectations, despite the unmet demand in North America resulting from the operational issues identified earlier in the year. Overall, positive net pricing and cost savings have more than offset lower volumes.
In Foundry, revenue and trading profit year-to-date have continued to improve and are ahead of the prior year, reflecting both benefits from the MMS acquisition and an underlying positive trading performance.
In Advanced Refractories, however, while year-to-date revenue is at a similar level to 2025 in all major regions except EMEA, profitability continues to be significantly impacted by the operational issues in North America and India, together with a challenging pricing environment in EMEA.
Operational issues largely addressed
The operational issues that were noted earlier in the year, principally impacting our North America sites, are now largely addressed, and production backlogs have been materially reduced. We remain confident that these issues will be substantively resolved by the year end. In India, we have continued to see improving stability in our manufacturing site in Vizag.
Cashflow
We are continuing to make good progress on cash management, with further progress in the reduction of trade working capital intensity.
Outlook
As set out above, trading within our Flow Control and Foundry businesses is ahead of this time last year, whilst trading for the Advanced Refractories business unit remains challenging. Accordingly, our trading profit outturn for the full year 2026 is expected to be broadly in line with FY25 trading profit on a constant currency basis.
Update to FY25 FX translation impact guidance
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FY25 |
Reported FX rates |
Re-translated* |
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Revenue |
£1,809.5m |
£1,800.1 |
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Trading profit |
£151.1m |
£147.2 |
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Return on sales |
8.4% |
8.2% |
* Hybrid rate based on 9 months YTD 2026 average FX rates to 30 September 2026 blended with the 1 October spot rate for the remainder of the period.
Technical guidance given on 30 July 2026 otherwise remains unchanged.
CONFERENCE CALL
Patrick André (Chief Executive) and Mark Collis (Chief Financial Officer) will be hosting a conference call with Q&A for analysts and investors at 08:00 (UK time) today.
To participate, please register at least 30 minutes prior to the start of the call by following the link here; alternatively, dial-in on +44 33 0551 0200, or (toll-free): 0808 109 7000 (password if prompted: Vesuvius)
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For further information, please contact: |
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Shareholder/analyst enquiries: |
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Vesuvius plc |
Patrick André, Chief Executive |
+44 (0) 207 822 0000 |
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Mark Collis, Chief Financial Officer Rachel Stevens, Head of Investor Relations |
+44 (0) 207 822 0000 |
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Media enquiries: |
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MHP |
Rachel Farrington, Ollie Hoare |
+44 (0) 7817 458804 vesuvius@mhpgroup.com |
Addendum (Takeover Code rule 28.4)
FY2026 profit forecast
The statements in this announcement that:
"Trading profit in FY26 is expected to be broadly in line with FY25 trading profit on a constant currency basis"; and
"Accordingly, our trading profit outturn for the full year 2026 is expected to be broadly in line with FY25 trading profit on a constant currency basis",
constitute a profit forecast for the purposes of Rule 28 of the City Code on Takeovers and Mergers (the "Takeover Code") for the financial year ending 31 December 2026 (the "FY2026 Profit Forecast").
The FY2026 Profit Forecast has been published in the ordinary course of Vesuvius plc's ("Vesuvius" or the "Company") communications with its shareholders and the market. In accordance with Note 2(b) on Rule 28.1 of the Takeover Code, the Panel on Takeovers and Mergers (the "Panel") has, with the agreement of RHI Magnesita N.V., consented to the disapplication of the requirement for reports from the Company's reporting accountants and financial advisers in respect of the FY2026 Profit Forecast. Accordingly, this announcement includes the directors' confirmations required by Rule 28.1(c)(i) of the Takeover Code.
Basis of preparation
The FY2026 Profit Forecast has been prepared on a basis consistent with the Company's existing accounting policies and the definition of trading profit used in this announcement. The comparison with FY2025 trading profit is on the constant-currency basis described in this announcement.
The FY2026 Profit Forecast is based on the Company's financial information available as at the date of this announcement and management's expectations for the remainder of the financial year ending 31 December 2026. It has been compiled on the basis of the principal assumptions set out below.
Directors' confirmations
The directors of Vesuvius have considered the FY2026 Profit Forecast and confirm that, as at the date of this announcement, the FY2026 Profit Forecast remains valid, has been properly compiled on the basis of the assumptions set out below and that the basis of accounting used is consistent with the Company's existing accounting policies.
Principal assumptions
The FY2026 Profit Forecast has been prepared on the basis of the following principal assumptions.
Factors within the influence or control of the directors
• There will be no material change to the present management of Vesuvius;
• There will be no material change in the operational model or strategy of Vesuvius;
• Vesuvius' pricing, cost-reduction and operational-efficiency initiatives will be implemented substantially in accordance with management's current plans for the remainder of FY2026;
• The actions underway to drive operational recovery in North America and India, including the reduction of production backlogs and the stabilisation and ramp-up of production at Vizag, will be in line with what was anticipated in the FY2026 Profit Forecast;
• There will be no material acquisitions, disposals or other corporate transactions affecting Vesuvius' trading profit during the remainder of FY2026; and
• Vesuvius' accounting policies, and the basis on which trading profit is calculated, will be applied consistently throughout the forecast period.
Factors outside the influence or control of the directors
• There will be no material adverse change in prevailing macroeconomic or political conditions in the markets in which Vesuvius operates, including developments relating to the conflict in the Middle East;
• There will be no material adverse change in customer production levels, demand, the timing of customer orders or the competitive environment in Vesuvius' steel and foundry markets;
• There will be no material adverse change in raw-material, energy, freight and other externally determined input costs, and the availability of those inputs in the markets and regions in which Vesuvius operates;
• There will be no material adverse change to the foreign exchange, inflation and tax rates in the markets and regions in which Vesuvius operates;
• There will be no material adverse change in the impact of tariffs, trade restrictions or other applicable regulatory requirements;
• There will be no material adverse disruption to the Group's operations, supply chains or customer deliveries arising from events beyond those already reflected in the FY2026 Profit Forecast, including cyber incidents, industrial action, natural catastrophes or interruptions to energy supplies; and
• There will be no material adverse outcome from litigation or disputes with customers, suppliers, competitors or regulatory authorities.
About Vesuvius plc
Vesuvius is a global leader in molten metal flow engineering and technology principally serving process industries operating in challenging high‑temperature conditions.
We develop innovative and customised solutions, often used in extremely demanding industrial environments, which enable our customers to make their manufacturing processes safer, more efficient and more sustainable. These include flow control solutions, advanced refractories and other consumable products and increasingly, related technical services including data capture.
We have a worldwide presence. We serve our customers through a network of cost-efficient manufacturing plants located close to their own facilities, and embed our industry experts within their operations, who are all supported by our global technology centres.
Our core competitive strengths are our market and technology leadership, strong customer relationships, well established presence in developing markets and our global reach, all of which facilitate the expansion of our addressable markets.
Our ultimate goal is to create value for our customers, and to deliver sustainable, profitable growth for our shareholders giving a superior return on their investment whilst providing each of our employees with a safe workplace where they are recognised, developed and properly rewarded.
We think beyond today to create solutions that will shape the future.
Forward looking statements
This announcement contains certain forward looking statements which may include reference to one or more of the following: the Group's financial condition, results of operations, cash flows, dividends, financing plans, business strategies, operating efficiencies or synergies, budgets, capital and other expenditures, competitive positions, growth opportunities for existing products, plans and objectives of management and other matters.
Statements in this announcement that are not historical facts are hereby identified as "forward looking statements". Such forward looking statements, including, without limitation, those relating to the future business prospects, revenue, working capital, liquidity, capital needs, interest costs and income, in each case relating to Vesuvius, wherever they occur in this announcement, are necessarily based on assumptions reflecting the views of Vesuvius and involve a number of known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied by the forward looking statements. Such forward looking statements should, therefore, be considered in light of various important factors that could cause actual results to differ materially from estimates or projections contained in the forward looking statements. These include without limitation: economic and business cycles; the terms and conditions of Vesuvius' financing arrangements; foreign currency rate fluctuations; competition in Vesuvius' principal markets; acquisitions or disposals of businesses or assets; and trends in Vesuvius' principal industries.
The foregoing list of important factors is not exhaustive. When considering forward looking statements, careful consideration should be given to the foregoing factors and other uncertainties and events, as well as factors described in documents the Company files with the UK regulator from time to time including its annual reports and accounts.
You should not place undue reliance on such forward looking statements which speak only as of the date on which they are made. Except as required by the Rules of the UK Listing Authority and the London Stock Exchange and applicable law, Vesuvius undertakes no obligation to update publicly or revise any forward looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward looking events discussed in this announcement might not occur.
Vesuvius plc, 165 Fleet Street, London EC4A 2AE
Registered in England and Wales No. 8217766
LEI: 213800ORZ521W585SY02
www.vesuvius.com
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