Weir Group Shares Slide as Q1 Orders Decline and New CEO Announced
Weir Group Q1 Performance and Leadership Transition
First-Quarter Orders and Market Reaction
April 30 (Reuters) - Weir Group reported a fall in first-quarter orders on Thursday, sending shares down as much as 10%, even as the engineering firm reiterated annual guidance and promoted the head of its biggest business to CEO.
Leadership Change
New CEO Appointment
The company, focused heavily on services to the mining sector, said Chief Executive Jon Stanton will step down and be succeeded by the president of its minerals division, Andrew Neilson. The unit accounts for over 71% of total group revenue.
Market Drivers and Sector Outlook
Global Demand for Critical Minerals
The update comes as global demand for critical minerals and rare earths minerals such as nickel and cobalt continues to accelerate, driven by electric vehicles, grid expansion, a renewable energy push and data‑centre growth linked to artificial intelligence.
Order Intake and Share Price Impact
However, for the first quarter ended March 31, Weir reported a 3% decline in total order intake after similar declines at its minerals unit, sending shares down 7% to 2,560 pence by 0820 GMT.
Business Outlook and Guidance
Order Phasing and Regional Disruptions
The company said phasing of orders and some mine disruptions in Asia-Pacific and Africa had affected business, but it was confident orders would develop "very positively" through the year, despite potential impact from uncertainty linked to the Iran war.
Commodity Prices and Growth Expectations
The rise in commodity prices driven by the war has been boosting demand for expansions and underlying activity, the company said.
Revenue and Margin Guidance
The company continues to expect a mid‑single‑digit percent organic revenue growth in 2026, and a 50‑basis‑point expansion in operating margin.
(Reporting by Neeshita Beura in Bengaluru; Writing by Pushkala Aripaka; Editing by Sumana Nandy and Mrigank Dhaniwala)
