Half Year 2024 Weir Group PLC Earnings Call Transcript
Key Points
- Weir Group PLC (WEGRY) demonstrated strong operational efficiency, expanding operating margins by 180 basis points to 17.8%.
- The company grew free operating cash conversion to 68%, a 17 percentage point increase from last year.
- Operating profit increased by 8% year-on-year, reflecting resilience in the face of macroeconomic uncertainty.
- Weir Group PLC (WEGRY) maintained a high level of aftermarket revenue, which accounted for 80% of total revenue, up from 78% in June 2023.
- The company received a GBP53 million contract award for a greenfield project, indicating strong future revenue potential.
- Constant currency revenue decreased by 3% year-on-year, primarily due to the phasing of original equipment deliveries.
- Orders were marginally down year-on-year, primarily due to the phasing of original equipment orders.
- Revenue from the Canadian oil sands market normalized, contributing to the overall revenue decline.
- The absence of revenue from Russia following the company's exit impacted overall revenue.
- Specific challenges in nickel and lithium operations in Australia, as well as shutdowns in Panama and Turkey, affected aftermarket parts growth.
Good morning, everyone, and welcome to Weir's half-year results presentation. Please note the usual cautionary notice on forward-looking statements. Today, I'm joined by our new CFO, Brian Puffer, for his first sets of results. I'm very pleased with how Brian is fitting in and the experience he brings to Weir, which is having a positive impact.
We'll follow the usual format. So after some opening remarks from me, Brian will take you through the financial review, and I'll then return with the strategic and markets review and the outlook for the group, followed by Q&A. Let me start by reiterating the three key factors which underpin the exciting value creation opportunity that we're delivering on. Firstly, we're a focused mining technology leader with unique capabilities, our world-class engineering solutions, combined with intensive global aftermarket support, keep our customers' minds running and solve their big challenges.
We are deeply embedded in their operations and have a large installed base of mission-critical equipment
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