Weir announces new margin, savings targets

(Sharecast News) - Weir Group announced new margin and savings targets on Wednesday, ahead of its capital markets event. The FTSE 100 firm said it was now targeting £60m in absolute savings by 2026 as part of its goal to reach an operating margin of 20% by the same year.

It also confirmed that market conditions and its 2023 guidance remained unchanged, with the company on track to deliver an operating margin of 17%.

"Today, I am delighted to announce our new group operating margin target of 20% in 2026," said chief executive officer Jon Stanton.

"Since completing our portfolio transformation in 2021, we have been on a journey to sustainably higher margins and are on track to deliver an operating margin of 17% this year."

Stanton was "confident and excited" to move into the next phase, with Weir's margin expansion journey well underpinned.

"Strong structural growth trends in our markets, the benefits of our resilient compounding business model and opportunities from our performance excellence transformation programme mean we are well placed to deliver excellent outcomes for all stakeholders as a focused mining technology leader."

At 0805 GMT, shares in the Weir Group were up 2.74% at 1,915.5p.

Reporting by Josh White for Sharecast.com.