Vesuvius (LSE:VSVS) expects first-half trading profit of approximately £74m for 2026, the molten metal flow engineering group said in a trading update.
The London-listed company, which supplies flow control solutions and advanced refractories to steel and foundry customers worldwide, said operational issues in its Steel division have worsened since its last update on 28 May.
Advanced Refractories is also facing a tougher trading environment, particularly in Europe.
Vesuvius said the operational problems are temporary and being addressed, with resolution expected by the end of the year.
As a result, the company now expects full-year trading profit to come in only slightly ahead of 2025 levels on a constant currency basis, a downgrade from its prior guidance.
Vesuvius will publish half-year results on Thursday 30 July at 7am.
News Intelligence what this means for the company
Vesuvius has downgraded full-year 2026 profit guidance, now expecting only a slight increase over 2025 levels on a constant currency basis, after operational issues in its Steel division worsened since late May and Advanced Refractories faced weak European demand. The company expects first-half trading profit of approximately £74m and says the problems are temporary, with resolution targeted by year-end, but the guidance cut signals material near-term headwinds in two of its core divisions.
The profit downgrade undermines near-term earnings momentum and raises questions about execution in the Steel division despite the company's expectation of resolution by year-end. Against this, Vesuvius is still targeting at least £10m in cost savings from MMS integration in 2026, which may provide some offset if operational issues stabilize as promised.
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