UK-listed Weir says positive momentum continues to build in its core mining and metals market as governments step up moves to accelerate approval and development of projects amid supply chain security concerns.
The company reported September quarter group capital equipment orders were 15% higher than the same time last year after excluding £48 million of major deals won in the same period in 2024. They were connected with the Reko Diq copper-gold project in Pakistan and OCP Group phosphate projects in Morocco.
Group orders totalling £618 million in Q3 this year versus £636m in Q3 2024 included £122m of equipment (£158m in 2024) and £496m of aftermarket (£478m).
Weir’s US-based ESCO arm, built on wear and replacement parts for mining and construction equipment, is strongly growing aftermarket sales with the inclusion of Weir’s mining sensor and software acquisitions, including Vancouver-based Motion Metrics, Perth-based Micromine and, soon, Brazil’s Fast2Mine.
ESCO aftermarket orders were up 21% year-on-year, with Micromine contributing £17 million, “in-line with our deal assumptions”.
“The announced acquisition of Fast2Mine is expected to complete in Q4 this year, after which the business will be integrated into Micromine and reported within the ESCO division,” Weir said.
Weir CEO Jon Stanton said the Q3 results reflected “positive activity in our core mining markets”.
“Demand for brownfield and debottlenecking solutions is driving healthy order momentum for original equipment across both divisions,” he said.
“As customers maximise production to capitalise on metals demand, good underlying aftermarket activity has been enhanced by further installed base conversion and a strong contribution from recent acquisitions.”
London-based Panmure Liberum said in a note this year’s US$150 million Townley acquisitions in the US were also making a positive contribution to Weir’s minerals business.
“On the analyst call management noted that the outlook continues to develop positively, with clear indications of customer intent to deploy capital,” the investment bank said.
“This momentum is being supported by heightened defence and national security priorities, as governments increasingly focus on accelerating the approval and development of critical mining projects.”
US mining and construction equipment major Caterpillar said this week it expected mining capital expenditure to grow by 50% between 2024 and 2030, driven by declining mine ore grades and higher average mine material movement rates, the sector’s equipment replacement needs and new critical minerals projects.
“Weir’s commodity exposure leaves it well placed in the current mining capex cycle,” Panmure Liberum said.
The bank said with the Fast2Mine acquisition – which it estimated cost Weir about £25 million (US$32 million) – Weir’s FY2025 net debt would increase to £1.142 billion, “but more M&A is possible in FY26”.
