Weir Group: Q2 preview: Expect topline recovery following Q1 weakness

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Weir Group: Q2 preview: Expect topline recovery following Q1 weakness

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Weir Group

Q2 preview: Expect topline recovery

following Q1 weakness

Reiterate Rating: BUY | PO: 3,600 GBp | Price: 2,496 GBp

Q2 recovery to set the scene for a strong H2 07 July 2026

Weir’s share price has derated c.13% YTD, underperforming the mining equipment peer Equity

group by c.30ppts. Underperformance was driven by 1) order growth weakness in 1Q26,

while peers delivered continued topline momentum and 2) fears around Weir’s market Tore Fangmann >>

share in pumps. We expect an acceleration of order intake in Q2 driving organic 1H order Research Analyst

Merrill Lynch (DIFC)

growth of 1.2%, c.40bps ahead of consensus. This supports management’s view that Q1 +971 4 425 8210

order weakness was only temporary, driven by order phasing and mine site disruptions. tore.fangmann@bofa.com

Additionally, we expect management to reassure investors at Q2 results regarding the Benjamin Heelan >>

Research Analyst

company’s market position in pumps, where we do not expect market share losses and Merrill Lynch (DIFC)

that Weir will deliver c.50bps operating margin expansions in 2026 (BofAE +70bps). We +44 20 7996 5723 benjamin.heelan@bofa.com

leave our estimates largely unchanged (see Exhibit 2) and reiterate Buy, as we think that Alexander Jones, CFA >>

Weir’s current valuation at 11.6x EV/EBITA 2027E, a >10% discount to history offers a Research Analyst

particularly attractive entry point given 1) we expect growth recovery from Q2 onwards MLI+44 (UK)20 7995 5828

and 2) Weir offers peer group leading margins and an attractive aftermarket heavy alexander.jones2@bofa.com

product portfolio. Uma Samlin >>

MLI (UK)Downstream on cusp of equipment demand inflection +44 20 7995 1964