Severfield (SFR) H2 2026 TU earnings summary

Executive summary

• FY26 underlying profit before tax expected to meet market expectations of £10.2m.

• Net debt at year-end projected at ~£28m, significantly below consensus of £48.5m, with facility headroom of £39m.

• UK and Europe order book at £438m, providing strong visibility despite some project delays.

• Record Indian order book of £331m, with robust output and ongoing expansion at the Gujarat facility.

• Business review underway, including discontinuation of non-core Modular Solutions business.

Financial highlights

• FY26 underlying profit before tax expected at £10.2m, in line with market expectations.

• Net debt expected to be ~£28m, well below consensus, with year-end facility headroom of £39m.

• Received £7.5m additional insurance payment for bridge remedial works, totaling £27.5m.

Outlook and guidance

• FY27 underlying profit before tax forecasted at £12m–£15m, reflecting cautious outlook due to delayed project starts, tight pricing, and macro/geopolitical uncertainty.

• Market conditions in UK and Europe remain subdued, with delays in project awards and tighter margins on near-term work.

• Indian market outlook remains positive, with expansion and new sector targeting.