Vesuvius maintains FY outlook after solid start to 2026

(Sharecast News) - Metal flow engineering firm Vesuvius said on Thursday that trading over the first four months of the year was slightly ahead of 2025 on a constant‑currency basis, leading the group to maintain its full‑year guidance as it expects to report a stronger second half performance.

Vesuvius said steel production outside China, Ukraine, Russia and Iran rose 2.5% in the first quarter, with improving momentum in India, South East Asia and now North America. Output in Europe, the Middle East and South America remained below prior‑year levels, though Vesuvius expects conditions in Europe to improve as new protective measures take effect later in the year.

Foundry markets stayed soft across most regions, although demand in China and India provided support. Vesuvius also said pricing discipline remained firm across both of its divisions, with positive net pricing helping offset cost inflation.

Steel division volumes were slightly lower year‑on‑year, reflecting customer closures in 2025 and temporary supply‑chain issues in North America, but the group said trends had improved into the second quarter and should continue to recover through the year.

Vesuvius reiterated that at least £10m of cost savings would be delivered in 2026, rising to at least £55m cumulatively by 2028, and said cash generation and working‑capital management remained solid, with leverage unchanged from the FY25 year‑end and expected to fall in the second half.

The FTSE 250-listed company also updated its FX‑translation guidance, noting that re‑translated FY25 revenue would have been £1.80bn versus £1.81bn reported, with trading profit at £146.9m versus £151.1m.

As of 0805 BST, Vesuvius shares were down 4.41% at 450.80p.

Reporting by Iain Gilbert at Sharecast.com

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