Vesuvius (LON:VSVS) Announces Earnings Results

Vesuvius (LON:VSVS) issued its earnings results on Thursday. The company reported GBX 16.30 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Vesuvius had a return on equity of 3.36% and a net margin of 2.09%.

Here are the key takeaways from Vesuvius’ conference call:

• First-half performance was resilient but broadly flat. Revenue rose 1.5% on a constant-currency basis to offset a volume decline, while trading profit remained at £74 million and EPS fell 0.7%.
• Operational problems in the Steel Division—including supplier quality issues, deficient maintenance and staffing gaps in the U.S., plus ramp-up difficulties at the Vizag plant in India—reduced first-half trading profit by about £8 million. Management expects these issues to be resolved by year-end, but market share recovery may take time, particularly in Advanced Refractories.
• Management expects full-year trading profit to be slightly ahead of 2025 on a constant-currency basis, supported by structural steel-market growth outside China, improving European demand from the fourth quarter, pricing gains and the recovery of lost volumes.
• The Foundry Division delivered strong growth, with revenue up 8.7% and trading profit up 32.7%; the MMS acquisition is integrating ahead of expectations, generating £4 million of first-half profit versus £6 million annualized at acquisition and with further synergies planned.
• Cash generation improved substantially, with free cash flow of £27.5 million versus an outflow of £13.2 million a year earlier, while working-capital intensity and leverage declined. The company also delivered £7.4 million of recurring cost savings and maintained its interim dividend at 7.1 pence per share, although higher 2026 capital expenditure guidance of £75–80 million will temper deleveraging.

Vesuvius Trading Up 1.7%

Shares of LON:VSVS opened at GBX 371 on Friday. The company has a debt-to-equity ratio of 56.90, a current ratio of 2.05 and a quick ratio of 1.20. Vesuvius has a 1 year low of GBX 346.60 and a 1 year high of GBX 507.50. The company has a market cap of £913.39 million, a P/E ratio of 17.75, a PEG ratio of 0.57 and a beta of 1.15. The stock’s fifty day moving average price is GBX 448.88 and its 200-day moving average price is GBX 445.27.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Peel Hunt restated a “buy” rating and set a GBX 525 target price on shares of Vesuvius in a report on Monday, July 27th. JPMorgan Chase & Co. decreased their price target on shares of Vesuvius from GBX 440 to GBX 400 and set a “neutral” rating for the company in a research note on Friday. Jefferies Financial Group reiterated a “buy” rating and set a GBX 520 target price on shares of Vesuvius in a report on Monday, July 27th. Finally, Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a GBX 440 price target on shares of Vesuvius in a research report on Tuesday. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 469.

Insiders Place Their Bets

In other Vesuvius news, insider Patrick André sold 55,936 shares of the company’s stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of GBX 368, for a total transaction of £205,844.48. Company insiders own 24.96% of the company’s stock.

About Vesuvius

We are a global leader in metal flow engineering, providing a full range of engineering services and solutions to its customers worldwide, principally serving the steel and foundry industries.