Overview of Vesuvius' Performance#

Vesuvius Plc has released its preliminary results for the full year 2025, showing performance that met or exceeded analyst expectations. The company anticipates an improved performance in the second half of 2026, driven by protective trade measures.

Financial Highlights#

The company reported sales of £1,810 million for 2025, which remained flat compared to the previous year. However, on an organic constant currency basis, sales increased by 1%. Earnings before interest, tax, and amortization (EBITA) reached £151.1 million, a decline of 17% year-over-year in constant currency terms, but still surpassed analyst forecasts of £147 million to £151 million.

Pretax profit was reported at £133.7 million, down 23% from 2024 but slightly above the consensus estimate of £133 million. Earnings per share (EPS) stood at 34.2 pence, a 21% decrease from the previous year, yet 3% higher than expectations. The EBITA margin decreased to 8.4%, down 170 basis points from the prior year.

Division Performance#

In the Steel Division, which is the primary revenue source, sales increased by 1.4% year-over-year in constant currency, although EBITA fell by 18% to £120 million. The EBITA margin for this division contracted by 210 basis points to 8.9%.

The Flow Control segment saw flat sales, with stable volumes offset by positive pricing. Meanwhile, Advanced Refractories experienced a 3.9% growth in sales, benefiting from increased pricing and market share.

Conversely, the Foundry Division reported a 2% decline in constant currency sales, primarily due to decreases in the Americas and Europe, Middle East, and Africa regions. However, Asia Pacific showed a 3% growth, particularly in India and China. EBITA for this division decreased by 11% to £31.1 million, with margins down 70 basis points to 6.7%.

Future Outlook#

Management expressed optimism for 2026, anticipating a transition to recovery in both divisions as the year progresses. They expect year-over-year EBITA growth to be supported by cost savings, merger and acquisition activities, and modest volume growth. Vesuvius aims for EBITA margins of 12.5% and significant free cash flow over time, with expectations of little change to 2026 consensus EBITA forecasts of £174 million.