Overview
Vesuvius Plc reported preliminary results for the year ended 2025 that came in at or above consensus on several headline measures, though margins deteriorated across divisions. Group sales were £1,810 million for 2025, flat on a reported basis and up 1% on an organic constant currency basis compared with the prior year.
Profitability and earnings
The company recorded earnings before interest, tax and amortization (EBITA) of £151.1 million for 2025, a 17% decline year-on-year in constant currency terms, but marginally ahead of analyst forecasts in the £147 million to £151 million range. Pretax profit was £133.7 million, down 23% from 2024 yet 1% above the consensus figure of £133 million. Basic earnings per share were 34.2 pence, a 21% decrease year-on-year but 3% higher than expectations.
Vesuvius reported a group EBITA margin of 8.4% for 2025, a contraction of 170 basis points from the prior year.
Balance sheet and cash metrics
At year-end, net debt stood at £452 million after IFRS adjustments. That figure was slightly above the £439 million forecast provided previously, with the variance attributed to higher capital expenditure, foreign exchange movements and cash tax payments. On a pro-forma basis, the net debt to EBITDA ratio was 2.0 times.
Division performance
The Steel Division, which constitutes the largest share of group revenue, delivered a 1.4% increase in sales on a constant currency basis. However, division EBITA fell 18% to £120 million, and the Steel Division’s EBITA margin contracted by 210 basis points to 8.9%.
Flow Control recorded flat sales as positive pricing was offset by broadly stable volumes. Advanced Refractories posted sales growth of 3.9%, supported by positive pricing, volume gains and market share improvement.
The Foundry Division experienced a 2% decline in constant currency sales, driven by lower volumes and price reductions in the Americas and Europe, Middle East and Africa regions. These declines were partially offset by 3% sales growth in Asia Pacific, led by India and China. Foundry division EBITA decreased 11% to £31.1 million, with margins falling 70 basis points to 6.7%.
Outlook and guidance
Management indicated that 2026 should mark a transition toward recovery in both the Steel and Foundry divisions, particularly as the year progresses. The company expects year-on-year EBITA growth in 2026 to be supported by cost savings, merger and acquisition activity and modest volume growth. Vesuvius guided that EBITA should be in line with expectations on a constant foreign exchange basis.
The group continues to target an EBITA margin of 12.5% and to generate significant free cash flow over time, contingent on improving end markets.
Analyst response
The results prompted little change in consensus for 2026 EBITA, with analysts expecting the 2026 consensus forecast of £174 million to remain largely intact following the preliminary results.