The Weir Group PLC reports its interim results for the six months ended 30 June 2025

Significant strategic progress, positive markets and excellent execution

FY revenue guidance reiterated, operating profit margin upgraded to c.20%

Executing our strategy to deliver compounding growth

•   Micromine acquisition completed - significantly accelerating digital strategy

•   Townley acquisition brings exposure to attractive US phosphate market and foundry

•   CiDRA P29 investment complementing our partnership with Eriez on transformational separation solutions

Positive demand environment driving order¹ momentum

•   OE order¹ growth +7% supported by brownfield activity and £40m order in Talabre, Chile

•   High activity levels driving strong AM order¹ growth; +8%

◦     Minerals AM +10%; underlying growth +7% excluding multi-period order

◦     ESCO AM +1% like-for-like; +7% growth in core GET offset by dredge phasing

◦     Micromine £12m contribution, in line with deal model

Excellent operational performance; US tariff effects mitigated

•   Strong demand for aftermarket driving revenue¹ +4%

•   Adjusted operating profit margin^1,3 of 19.8%; +220bps YoY

•   Cumulative Performance Excellence savings of £40m; £11m incremental savings in H1 as expected

Strong cash conversion and extension of debt maturities

•   Free operating cash conversion of 62%, -6pp following exceptional FY 2024 performance

•   Net debt⁵ to EBITDA of 2.0x, to reduce below 2.0x by the end of 2025

•   Long dated debt maturity profile after refinancing of UK and US public bonds

FY Outlook: Constant currency revenue guidance reiterated, operating profit margin upgraded

•   Growing pipeline of sustainable solutions and positive activity levels in AM

•   Prior operating profit margin^1,3 guidance upgraded to c.20%

•   Free operating cash conversion of 90% to 100%

^{*As of 31 December 2024. For all other footnotes see page 5.}

Jon Stanton, Chief Executive Officer said:

"Our strong performance in the first half of this year demonstrates our leadership in mining technology and the unique capabilities of our business model. We have made significant strategic progress, strengthening our position in digital solutions with the purchase of Micromine, and enhancing our presence in North America with our agreement to acquire Townley. Mining markets are strong, particularly copper and gold, and customers are choosing Weir to provide the novel, mission critical solutions they need to scale up and clean up their operations. Our businesses are focused, and with a continuous improvement mindset, driving excellent operational execution and mitigating any impacts of US tariffs.

As we look to the full year, I am excited by the opportunities that lie ahead to support the urgent need for the minerals essential for a sustainable future. We are deepening relationships with our customers and bringing the full breadth of Weir's capabilities to accelerate the path for smart, efficient and sustainable mining. Our Performance Excellence programme continues at pace, underpinning delivery of sector-leading margins and cash. Taken together, we are on track to deliver our full year guidance for growth in revenue, upgrade our operating profit margin to c.20%, all while maintaining strong cash conversion."

A webcast of the management presentation will begin at 08:00 (BST) on 31 July 2025 at www.investors.weir. A recording of the webcast will also be available at www.investors.weir

CHIEF EXECUTIVE OFFICER'S REVIEW

Introduction

Our strong performance in the first half of the year has demonstrated the quality and resilience of our business in a period of exceptional uncertainty. Since April, the US Government has issued, and in cases later rescinded, numerous changes to their tariff and trade policy amidst a host of other legislative actions. Combined with several regional conflicts, including those in the Middle East and Ukraine, uncertainty as to the speed and direction of the global economy has risen significantly. As macro events unfolded, the Group has acted quickly to mitigate any impacts through our resilient business model and operational agility.

Progress with our acquisition strategy has been encouraging. At the end of April, we completed the acquisition of Micromine and immediately launched the integration process, focused on putting in place the mechanisms required to accelerate its revenue growth. We are advancing toward our deal synergies at pace, even at this early stage, and, after two months of ownership, performance is in line with our pre-deal assumptions. Over the longer term, the opportunity to form a sector-leading digital optimisation platform for the mining industry is incredibly exciting.

The announced acquisition of Townley is expected to bring exposure to the attractive phosphate market as well as a strategically important North America foundry which completes the global casting capacity needs of the Minerals Division.

Despite broader trade uncertainty, we saw high activity levels in our mining markets, with customers increasing capex plans after a long period of underinvestment, and early signs of an acceleration in project permitting, particularly in North and Latin America, enabled by Government policy responses. Across existing mine sites we saw continued brownfield momentum in original equipment and strong aftermarket demand as customers sought to drive production growth while delivering efficiency and sustainability improvements.

Good activity levels and progress on our organic growth initiatives, along with the continued strong execution of our Performance Excellence programme, means we have delivered a period of constant currency growth in orders, revenue, operating profits, and operating margin.

Overall, our strong performance reflects the hard work and dedication of Weir colleagues across the globe, and I'd like to thank them for their commitment and contribution to our success.

Looking ahead, the opportunity to deliver compounding growth is compelling. Customers are coming to us to solve their mission critical challenges to address growing global demand for minerals. Our investments to accelerate our digital strategy, strengthen our presence in the growing North American market, and redefine mineral processing positions us as a leader in mining technology at this critical time. Our lean operations and agile structure enable us to respond quickly and efficiently to our customers' needs. Together, these factors give me great confidence that we will continue to deliver on our ambition to outgrow our markets, maintain operating margins sustainably beyond 20%, convert our earnings cleanly to cash, while remaining resilient and doing the right thing for our people and the planet.

OE order growth: Brownfield project momentum and Talabre win

With ongoing momentum on brownfield sites and the large Talabre order, OE constant currency orders increased by 7% year-on-year.

Underpinned by historically high commodity prices, our customers are investing to maximise production and extend the life of their existing mining assets. Supported by governments globally, our customers have announced meaningful expansion of their capex budgets to further bridge supply gaps in critical minerals as new projects are built. Longer term, renewed focus on accelerating mine permitting will generate substantial opportunities for the adoption of smart, efficient and sustainable mining.

In the second quarter, we announced a £40m brownfield expansion contract for sustainable tailings solutions at the Codelco Talabre tailings facility in Chile. The project will combine the thickened tailings streams from three major mines in the area, expected to have a total productive life of 20 years, and handle a slurry thickened to c.70% solid content - creating the opportunity to reuse process water and increasing the safety and stability of the storage facility. The Talabre project is key to creating the conditions for further capacity improvements within the process plants, a prime example of how debottlenecking projects stack to unlock the full potential of our customers' resources.

ESCO orders for mining attachments include a significant booking at Barrick's Lumwana mine after several years of close partnership. The booking ultimately led to a complete extraction solution, including orders for mining GET and MOTION METRICS^TM wear monitoring. Overall, strong underlying growth in mining and construction was offset by phasing of truck body orders.

AM order growth: High levels of activity and contribution from Micromine

We continue to see good levels of activity across the global mining sector. In total, aftermarket orders increased 8% in constant currency terms.

As previously indicated, growth in orders benefited from the full £35m booking of a large annual recurring order during the second quarter, having been split in the prior year between the second and fourth quarter due to the timing of the contract renewal (H1 2024: £16m). Orders from the acquisition of Micromine (£12m), which closed on 30 April, also contributed to growth in the half.

While individual site performance varied by commodity, gold and copper producers were very active supported by prices at or close to all-time highs. Stockpiling, and a recognised supply shortage of copper have incentivised customers to maximise production on their mines. Orders from industrial metals such as iron, nickel and lithium declined in some regions as end-market dynamics including battery manufacturing and automotive production remain challenged. Oil sands demand remains stable as large portions of the US look to their output as a critical blending ingredient at refineries.

Mining demand increased across all regions excluding APAC, which received a large order for commissioning spares in the first half of last year. In infrastructure, growth in construction attachments and GET was offset by a decline in dredge orders as project activity in the Middle East slows.

Revenue and margin: Excellent operational performance

Revenue increased 4% on a constant currency basis during the first half of the year as high levels of mine site activity drove demand for aftermarket spares and expendables (+7%). OE declined on phasing of the orderbook, which will reverse in the second half as we deliver the large Reko Diq order. Taken together with strong order growth, the Group's book-to-bill increased to 1.09 (2024: 1.05).

Input costs through the first half were stable, with gross margin benefiting from our lean manufacturing initiatives. Additional costs arising from tariffs in the US were managed mostly through our agile and vertically integrated supply chain, although modest price surcharges were made where this was not possible. Manufacturing utilisation, production variances, and scrap rates also improved as we maximised our existing footprint and found opportunities to reduce costs through outsourcing to our supply chain.

Progress within our Performance Excellence programme continues at pace. During the first half of the year, we recognised the largest benefit from projects completed last year, including transformation of our IS&T and HR functions as part of Weir Business Services. Continuous improvement within Minerals contributed significant savings, particularly from our new 'configure to order' product selection process. Also in Minerals, we recognised benefits from consolidation of our manufacturing and service footprint in Türkiye and commenced the last major capacity optimisation projects in EMEA and APAC.

On a constant currency basis adjusted operating profit grew by 17% and adjusted operating margins were 19.8%, up 220bps. This improvement reflects strong operational efficiency, positive mix, contribution from Micromine and incremental Performance Excellence benefits.

Returns: Outstanding execution and clear path to de-lever our balance sheet

We completed our acquisition of Micromine (Sterling equivalent⁶ enterprise value £624m) and announced our intention to acquire Townley (Sterling equivalent⁷ enterprise value £111m), both within our well-defined capital allocation policy. We expect both acquisitions to be earnings accretive to the Group in their first full year of ownership and return on invested capital (ROIC) expected to exceed the weighted average cost of capital (WACC) in 2028.

Free operating cash conversion remained stable at 62% resulting from a disciplined approach to building working capital ahead of several large project deliveries in the order pipeline. Our performance declined 6 percentage points following outperformance in 2024. We remain on track to deliver our full year guidance of 90% to 100% free operating cash conversion.

As a result of our capital discipline, we expect to quickly de-lever our balance sheet after several strategic investments in the first half of the year, including the acquisitions of Micromine and Townley and the investment in CiDRA. Net debt⁵ to EBITDA was 2.0x at the end of June, we anticipate this will be below 2.0x by the end of 2025 and return toward our guidance range of 0.5 to 1.5 times EBITDA by the end of 2026.

Return on capital employed (ROCE) for the 12 months to the end of June decreased as expected to 17.7%, -20bps relative to the same measurement point in the prior year and in line with the expansion of our capital base following acquisition spend of £640m.

Identifying an opportunity to extend the maturity profile of our publicly held debt with minimal profitability impact, we refinanced our US and UK listed bonds, raising a total of US$950m which was used to buy back existing bonds of £150m and US$667m, as well as for other general purposes.

The Board has approved an interim dividend of 19.6 pence per share (2024: 17.9p). This is in line with our policy of distributing one third of adjusted EPS and represents a 9% increase on the prior year. The interim dividend will be paid on 4 November 2025 to Shareholders on the register on 3 October 2025.

Safety and sustainability

On safety, we have seen an increase in the number of recordable incidents through the first half of the year driven in part by the extent of change in certain parts of the business. We are working hard to address the underlying causes and renewing the focus on those particular sites and high-risk activities where incidents are most likely to happen. In March, we reflected on our performance as a Group during our annual safety day, collectively recommitting ourselves to the pursuit of zero harm and the need for consistently excellent safety performance across all our operations. Overall, the Group's total incident rate⁴ (TIR) increased year-on-year to 0.56 (2024: 0.35).

Progress on our mental health initiatives was recognised externally. In an assessment of the UK's 100 largest companies, CCLA Investment Management named Weir as one of only ten Tier 1 companies in their 2025 Corporate Health Benchmark, affirming our leadership in integrating mental health management into our business strategy and reporting.

For the third year running, we achieved a place on the global environmental non-profit Carbon Disclosure Project's (CDP) prestigious 'A List' for leadership in corporate transparency and performance on climate change.

Outlook: Constant currency revenue guidance reiterated, margin upgraded to c.20%

Activity levels in our mining markets are positive as customers look to invest in projects that address structural critical metal demand. Supported by favourable commodity prices, customers continue to prioritise maximising ore production and improving the efficiency of existing mine sites which, together with ongoing installed base expansion, provides a strong underpin for demand for our aftermarket solutions.

We expect OE order and revenue growth to continue in the second half, supported by a strong pipeline of brownfield optimisation projects. Portions of our large order received for Reko Diq in Q3 last year are planned to ship in Q4 2025, reversing the mix tailwind during the first half of the year. Similarly, we expect high levels of mine site activity to support AM growth in the second half.

The continued favourable backdrop in mining, combined with execution of Performance Excellence and contributions from Micromine underpin our confidence in upgrading our 2025 operating margin guidance to c.20%. This includes an additional £10m underlying improvement in profitability offset by translational FX headwinds expected through the second half of the year. We expect free operating cash conversion of between 90% and 100%, in line with our medium-term guidance as our lean operating model continues to deliver working capital efficiency.

Further out, the long-term value creation opportunity for Weir is compelling. The fundamentals for our business are highly attractive, underpinned by long-term structural growth trends in our mining markets, and our technology strategy to accelerate sustainable mining. 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 allocate capital, compounding total shareholder returns.

Notes:

The Group financial highlights and Divisional financial reviews include a mixture of GAAP measures and those which have been derived from our reported results in order to provide a useful basis for measuring our operational performance. Adjusted results are for continuing operations before adjusting items as presented in the Consolidated Income Statement. Details of other alternative performance measures are provided in note 2 of the Interim Financial Statements contained in this press release.

1.     2024 restated at 2025 average exchange rates.

2.     Continuing operations excludes the Oil & Gas Division which was sold to Caterpillar Inc. in February 2021 and the Saudi Arabian joint venture which was sold to Olayan Financing Company in June 2021.

3.     Profit figures before adjusting items. Continuing operations statutory operating profit was £189m (2024: £188m). Total operations adjusted operating cash flow excludes additional pension contributions, exceptional and other adjusting cash items, and income tax paid. Total operations net cash generated from operating activities was £99m (2024: £123m).

4.     As measured by Total Incident Rate (TIR) which represents the rate of any incident that causes an employee, visitor, contractor, or anyone working on behalf of Weir to require off-site medical treatment per 200,000 hours worked.

5.     Refer to note 2 of the Interim Financial Statements contained in this press release for further details of alternative performance measures.

6.     Purchase settled in AUD. Spot of 2.0995 based on indicative Management rates.

7.     Transaction spot rate of 1.35

DIVISIONAL REVIEW - MINERALS

Minerals is a global leader in products and integrated solutions for smart, efficient and sustainable processing in mining markets.

2025 First half summary

•     Orders¹ +10%; large order pipeline conversion and strong demand for AM

•     Revenue¹ +4%; growth in underlying demand against phasing of large order deliveries

•     Operating profit margin^1,2 +250 bps; mix and Performance Excellence benefits

•     Book-to-bill of 1.10

2025 First half strategic review

Minerals made great progress in the first half, securing a £40m order for a sustainable tailings solution for Codelco in Talabre, Chile. Performance Excellence projects within the Division are building a leaner, customer focused operation at pace. Progress across all 4 pillars of the 'We are Weir' strategic framework is outlined below.

People

On safety, Minerals TIR for the period was 0.48 (2024: 0.24). This represents an increase on the prior year, while remaining at the lower end of the Division's historic trend.

We are investing in our future leaders globally, partnering with a growing list of top-rated Universities to facilitate our Minerals Leadership Foundations courses in more locations throughout the world. In the first half, we graduated our first cohort from this bespoke mining leadership programme in India.

Customer

The Division executed strongly on key strategic growth initiatives and during the first half converted 90% of our competitive field trials for large mill circuit pumps against a range of competitor solutions.

We received the largest order ever for our GEHO^® positive displacement pumps as part of the Talabre tailings storage solution, uniquely capable of transporting tailings of upwards of 70% solids content, delivering a paste which would be more stable than conventional tailings storage all while conserving water for re-use in the process plant.

We secured a large contract for our NEXT intelligent solutions in Saudi Arabia to deliver a predictive maintenance solution for eight large positive displacement pumps. The solution will enhance operational reliability, minimise unplanned downtime, and optimise maintenance planning through real-time data insights and early failure detection. Our success was due to our unique combination of AI-powered digital technologies and deep product domain expertise, reinforcing our position as a trusted partner in digital transformation for the mining industry.

Technology

We are investing in new transformative flowsheet solutions to help mining companies meet the challenges of reduced head grades, water restrictions, reduced carbon emissions, and tailings impound safety. Through our partnerships with Eriez and CiDRA, we are integrating a wide range of bolt-on, highly engineered solutions to deliver a menu of options to help our customers to maximise their new or existing mine sites.

During the first half of the year, we developed and trialed a new, standardised, mechanical throatbush technology for our large mill circuit pump range. This solution reduces total maintenance time, keeping the pump operating for longer and is already available on several sizes.

Performance

Minerals' Performance Excellence work streams continue to progress at pace, with the adoption of our bespoke continuous improvement approach, WINS, driving improvement across the Division. Revisions of standard operating procedures have driven warranty claims down, on time delivery up, and improved turns of consigned inventory.

With the announcement of the Townley acquisition, and pending its successful completion, we will have foundries with access to land routes in every major hard rock mining continent globally, creating opportunities for better recycling and lower freight charges.

2025 First half financial review

1. 2024 restated at 2025 average exchange rates except for adjusted operating cash flow.

2. Profit figures before adjusting items. Adjusted operating cash flow excludes additional pension contributions, exceptional and other adjusting cash items, and income tax paid. Refer to note 2 of the Interim Financial Statements contained in this press release further details of alternative performance measures.

Orders increased by 10% on a constant currency basis to £953m (2024: £869m), with book-to-bill of 1.10. OE orders increased 9%, reflecting high levels of brownfield activity and large Talabre order. AM orders grew 10% reflecting volume growth in hard rock mining and a minor contribution from pricing, as well as the full recognition of a large multi period order in North America. In the first half, AM orders represented 75% of total orders (2024: 75%). In total, mining end markets accounted for 76% of total orders (2024: 78%).

Revenue increased 4% on a constant currency basis to £865m (2024: £830m) on strong aftermarket delivery offset by phasing within the OE order book. Revenue growth was particularly strong in Latin and North America, reflecting heightened mining activity in those regions. Product mix moved towards AM, which represented 78% of revenue, up from 75% in the prior period.

Adjusted operating profit² increased 18% on a constant currency basis to £188m (2024: £160m) as the Division benefits from incremental Performance Excellence savings and operational efficiencies across gross margin and other manufacturing costs.

Adjusted operating profit margin² on a constant currency basis was 21.8% (2024: 19.3%). The year-on-year improvement of 250bps reflects Performance Excellence savings and the benefit of movement in revenue mix towards AM.

Adjusted operating cash flow² increased by 5% to £158m (2024: £151m) reflecting growth in operating profit offset by increased level of working capital outflow. Working capital movements reflect an increase in inventory ahead of large OE deliveries in H2 and decrease in payables offset by a decrease in receivables.

DIVISIONAL REVIEW - ESCO

ESCO is a global leader in Ground Engaging Tools (GET), attachments, and artificial intelligence and machine vision technologies that optimise productivity for customers in global mining and infrastructure markets.

2025 First half summary

•     Like-for-like orders¹ stable; mining demand offset by dredge activity in the Middle East

•     Revenue¹ +2%; £11m contribution from Micromine and core mining AM offset by OE phasing

•     Operating profit margin^1,2 +110bps; contribution from Micromine and supply chain efficiencies

•     Book-to-bill of 1.06

2025 First half strategic review

ESCO made strong strategic progress in the first half, beginning trials for the next generation construction GET system and gaining market share in mining GET. The acquisition of Micromine was completed in late April, and results for both May and June are reported within the ESCO Division. Specific progress across all 4 pillars of the 'We are Weir' strategic framework is outlined below.

People

On safety, ESCO's TIR for the period was 0.86 (2024: 0.82). Encouragingly, incident rates have trended down over the course of the first half of the year along with severity rates.

Customer

During the first half of the year, ESCO secured a major order from Barrick's Lumwana copper mine in Zambia, simultaneously delivering on the Division's three strategic growth initiatives of: extending vertically through the value chain through mining attachment sales, protecting our core by expanding the use of our GET solutions, and growing the installed base of MOTION METRICS^TM AI-enabled vision technology. The Lumwana mine is critical to the global supply of copper, enjoying one of the largest deposits in the world. Current expansion work, including this order, looks to extend the mine life by another 20 years.

The Division made excellent progress growing market share in core mining GET and MOTION METRICS^TM, winning net 80 competitive major digger conversions (2024: 61) and achieving the highest total orders for MOTION METRICS^TM of £16m (2024: £12m). Demand was particularly strong in North America and Africa from high levels of mining activity and renewed construction demand in the US following last year's election.

Technology

ESCO continues to expand the portfolio of Nexsys™ solutions, allowing for longer bucket campaign cycles and improved GET wear life to a greater number of sizes. As of June, Nexsys™ solutions are now being shipped to every mining region globally. Learnings from Nexsys™ are incorporated into the next generation of GET solutions for the construction industry, currently trialing at 6 customer sites, to be released at ConExpo in 2026.

Performance

The Division's lean continuous improvement under the Performance Excellence programme has been critical to managing the supply chain challenges arising from the US 'Liberation Day' tariffs. Over the first half, ESCO has worked to source and direct inventory optimally from its US and China based foundries, minimising potential customer impact. Additional Performance Excellence activities remain on track to deliver ESCO's contribution to the Group's 2026 target.

2025 First half financial review

1. 2024 restated at 2025 average exchange rates except for adjusted operating cash flow.

2. Profit figures before adjusting items. Adjusted operating cash flow excludes additional pension contributions, exceptional and other adjusting cash items, and income tax paid. Refer to note 2 of the Interim Financial Statements contained in this press release for further details of alternative performance measures.

Orders increased by 4% on a constant currency basis to £351m (2024: £339m). Orders include the first two months of Micromine ownership (£12m). ESCO like-for-like performance was stable, as good underlying demand for mining and construction GET was offset by the phasing of dredge orders as activity in the Middle East declined. At 93%, AM continues to account for most of the Division's orders (2024: 92%). The Division's book-to-bill was 1.06. In total, mining end markets accounted for 72% of total orders (2024: 69%).

Revenue increased 2% on a constant currency basis at £330m (2024: £324m), including revenue contributed from Micromine (£11m). ESCO like-for-like revenue was stable, reflecting growth in core mining and infrastructure GET offset by the phasing of large bucket deliveries.

Adjusted operating profit² increased by 8% on a constant currency basis to £68m (2024: £63m), benefiting from lean supply chain improvements within the Performance Excellence programme and contribution from Micromine (£4m).

Adjusted operating profit margin² on a constant currency basis was 20.5%, +110 bps (2024: 19.4%), with the year-on-year improvement reflecting favourable product mix and strong operational efficiencies.

Adjusted operating cash flow² decreased by 11% to £62m (2024: £70m), reflecting growth in operating profit offset by an increase in working capital outflow to £17m (2024: £6m). Working capital movements reflect an increase in inventory offset by a reduction in net receivables.

GROUP FINANCIAL REVIEW

1. 2024 restated at 2025 average exchange rates.

2. Profit figures before adjusting items. Adjusted operating cash flow excludes additional pension contributions, exceptional and other adjusting cash items, and income tax paid. Refer to note 2 of the Interim Financial Statements contained in this press release for further details of alternative performance measures.

3. Net Debt at 31 December 2024.

Continuing operations orders at £1,304m increased 8% on a constant currency basis. Minerals orders were up 10%, with AM growth up 10% reflecting volume growth in hard rock mining and a minor contribution from pricing, as well as the full recognition of our large multi period order in North America. Minerals OE orders increased 9%, reflecting the conversion of our large order pipeline. ESCO orders increased by 4%, with underlying demand in mining and construction driving aftermarket growth, this included a contribution of £12m from Micromine orders. 80% of orders from continuing operations related to aftermarket, in line with the prior year.

Continuing operations revenue of £1,195m increased 4% on a constant currency basis, reflecting the execution of our strong opening orderbook. In Minerals revenue was 4% higher on a constant currency basis at £865m (2024: £830m) due to phasing of large greenfield deliveries and heightened mining activity in Latin and North America. ESCO revenue increased 2% on a constant currency basis to £330m (2024: £324m), including a contribution of £11m from Micromine. There was a shift in revenue mix towards aftermarket, accounting for 82% of revenues from continuing operations, up from 80% in the prior year. Reported revenues decreased 1%, largely driven by a foreign exchange translation headwind of £53m. Overall book-to-bill stands at 1.09 (2024: 1.05) reflecting continued strength in orders .

Continuing operations adjusted operating profit increased by £21m, 10%, to £237m on a reported basis (2024: £215m). Excluding a £13m foreign currency translation headwind, the constant currency increase was £34m, 17%.

As explained further in the Divisional reviews, Minerals adjusted operating profit increased by 18% on a constant currency basis to £188m (2024: £160m) and ESCO's adjusted operating profit increased by 8% on a constant currency basis to £68m (2024: £63m), including a contribution of £4m from Micromine. Corporate costs of £19m (2024: £20m) are largely in line with prior year.

Continuing operations adjusted operating profit margin of 19.8% is up 220bps versus last year on a constant currency basis and up 200bps as reported. This increase is driven by further Performance Excellence savings, strong operating efficiencies as well as product mix moving towards AM (80% to 82%) for continuing operations. R&D as a percentage of sales was 2.2%, up from 2.1% at June 2024, meeting our target of 2% of revenue as we continue to invest in our technology strategy.

Continuing operations statutory operating profit for the period of £189m was £2m favourable to the prior year, with the increased adjusted operating profit result partly offset by increased adjusting items of £20m, driven by progress towards our Performance Excellence initiatives and acquisition & integration activity.

Continuing operations net finance costs were £24m (2024: £22m) with the increase mainly due to interest on debt acquired as part of the Micromine acquisition.

Continuing operations adjusted profit before tax was £213m (2024: £193m), reflecting the favourable adjusted operating profit results and an FX headwind of £12m. The statutory profit before tax from continuing operations of £165m is in line with the prior year (2024: £165m) .

Continuing operations adjusted tax charge for the year of £61m (2024: £54m) on profit before tax from continuing operations (before adjusting items) of £213m (2024: £193m) represents an adjusted effective tax rate (ETR) of 28.6% (2024: 28.2%). The increase in ETR mainly reflects the geographic mix of profits and changes to the provisions for tax on unremitted earnings held by the Group together with other permanent differences, including withholding taxes suffered on repatriation of cash from various jurisdictions.

A tax credit of £8m has been recognised in relation to continuing operations adjusting items (2024: £7m).

Continuing operations adjusting items increased to £47m (2024: £28m). Intangibles amortisation decreased by £4m to £8m (2024: £12m). Exceptional items totalled £31m (2024: £15m), with costs relating to our Performance Excellence programme of £20m and the remainder being acquisition & integration costs following the Micromine acquisition. Other adjusting items which relate to the Group's legacy asbestos-related provisions in the period were £8m (2024: £1m), with the increase relating to the US absestos liability and associated insurance asset.

Statutory profit for the period after tax from total operations of £113m (2024: £117m) reflects a £5m decrease in profit from continuing operations, partly offset by the non-repeat of prior year discontinued operations losses of £1m.

Adjusted earnings per share from continuing operations increased to 58.7p (2024: 53.6p). Statutory reported earnings per share from total operations is 43.6p (2024: 45.3p).

Cash flow and net debt

Adjusted operating cash flow decreased by £6m to £192m (2024: £198m) in the period, with higher adjusted operating profits offset by an increased outflow from working capital in the period of £93m (2024: £71m). Working capital as a percentage of sales reduced to 23% (2024: 24%), and up from 21% at December 2024. Continuing operations utilised non-recourse invoice discounting facilities of £25m (2024: £27m) compared to £35m at December 2024. This is largely utilising facilities provided by our customers to receive payment on reasonable terms in certain geographies where custom dictates extended payment terms. Suppliers chose to utilise supply chain financing facilities of £27m (2024: £39m) versus £34m at December 2024.

Net capital expenditure increased by £1m to £31m (2024: £30m). Lease payments at £15m were in line with the prior year (2024: £15m), while there were no purchases of shares for employee share plans in H1 (2024: £7m).

Free operating cash conversion (refer to note 2 of the Interim Financial Statements) was 62% (2024: 68%) with an increased working capital outflow, partly driven by the exceptional performance at December 2024, causing adjusted operating cash flow to remain largely stable, while adjusted operating profit increased by £21m.

Free cash flow (refer to note 2 of the Interim Financial Statements) from total operations was an inflow of £43m (2024: £53m).

Net debt increased by £679m to £1,213m (December 2024: £535m) and includes £147m (December 2024: £127m) in respect of IFRS 16 'Leases'. Drivers of the increase in net debt are primarily the result of the Micromine acquisition and related funding and investment in CiDRA Holdings. Net debt to EBITDA on a lender covenant basis was 2.0x (December 2024: 0.7x) compared to a covenant level of 3.5x, and in line with our external guidance for M&A activity.

In February 2025 the Group entered into an Australian Dollar $1,200m term loan facility to finance its purchase of Micromine. The facility is due to mature in February 2026 with an option to extend to February 2027. In May 2025, the Group completed the issue of five-year US$950m bond notes and, as a result, the Group elected to reduce its US$800m and £300m Sustainability-Linked Notes to US$133.1m and £150m. In addition, the Group have the option to increase its revolving credit facility by US$200m if required, subject to agreement of the counterparty. Following these actions and continued strong cash generation, the Group retains substantial levels of liquidity over the medium-term.

Pensions

The IAS 19 funding position across the Group's legacy UK and North American schemes increased from a net surplus of £9m at 31 December 2024 to a net surplus of £11m at 30 June 2025. This is primarily due to a financial assumptions gain of £7m, driven by a rise in the IAS 19 discount rate and a fall in RPI inflation, offset by losses on assets (inclusive of the impact on insured assets) of £7m. Within ESCO, there was a £1m settlement gain on one of their Canadian plans resulting from the settlement of liabilities with an insurer on route to winding up the plan. In total, a charge of £3m (2024: credit of £7m) has been recognised in the Consolidated Statement of Comprehensive Income.

Principal Risks and Uncertainties

The Board considers the Principal Risks and Uncertainties affecting the business activities of the Group are:

Further details of the Group's policies on Principal Risks and Uncertainties are contained within the Group's 2024 Annual Report, a copy of which is available at www.annualreport.weir.

Capital markets event

Spotlight on digital and software strategy - UK afternoon of 3 December 2025