Weir Group (LSE:WEIR) on Wednesday told investors that it remains on track to deliver in line with current market expectations for 2026, as group orders rose 8% year-on-year on a constant currency basis in the third quarter.
The London-listed mining equipment and aftermarket services group reported aftermarket orders up 10% in the quarter, with original equipment orders up 3%, as customers pushed to maximise production at lower ore grades across copper, gold and oil sands.
Within aftermarket, Minerals AM orders rose 7%, or £23m, with organic growth of 5%, while ESCO AM orders climbed 14%, or £26m, with organic growth of 10%, driven by strong demand for ground engaging tools (GET) and Software Solutions.
Original equipment growth was uneven: Minerals OE rose 6%, or £7m, helped by brownfield project demand, though Weir said delays pushed several larger project orders into the fourth quarter, while ESCO OE fell 24%, or £3m, which the company attributed to the phasing of large bucket and truck body orders following a strong first half.
Year-to-date book-to-bill improved to 1.10, Weir said, reflecting growth in the order book through the first three quarters.
The group flagged specific headwinds during the quarter: conflict in the Middle East has lifted oil prices and boosted oil sands demand but hurt phosphate customers, who account for around 4% of group revenue, while dredging activity fell as around 90% of large barges returned to port; extreme weather also disrupted activity in Chile.
Cumulative savings from the Performance Excellence programme reached £80m in the quarter, with Weir reiterating its 2026 full-year target of £90m, aided by the substantial completion of production transfers within its Minerals division.
"Our performance in the third quarter reflects good underlying momentum in our core mining markets, with customers looking to maximise production in a supportive commodity environment," said chief executive Andrew Neilson, who added that the focus "is now on delivering our large aftermarket backlog in Q4" as the group looks to deliver in line with current market expectations for 2026.
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On net debt, Weir said it expects to land slightly above its normal operating range of 0.5 to 1.5 times net debt to EBITDA by the end of 2026, before returning within that range over the course of 2027, with full-year net interest expense guided at approximately £90m.
The group guided to full-year operating margins above 20%, alongside strong cash conversion and growth in constant currency revenue and operating profit, while flagging continued monitoring of shorter-term sector headwinds from the Middle East conflict, international freight availability and the pace of recovery from mine disruptions in Chile.