UK engineering group Weir slips after order intake decline, CEO change announced
Weir Group Q1 Performance and Leadership Transition
By Neeshita Beura
April 30 (Reuters) - Weir Group reported a fall in first-quarter orders on Thursday, sending the British engineering firm's shares down as much as 10%, even as it reiterated its annual outlook and promoted the head of its biggest business to CEO.
Leadership Change at Weir Group
The company, focused heavily on services to the mining sector, said Chief Executive Jon Stanton will step down after nearly a decade in the role and be succeeded in August by the president of its minerals division, Andrew Neilson.
Industry Context and Market Drivers
The update comes as global demand for critical and rare-earth 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 AI.
Weir’s Performance Under Stanton
Since Stanton took the helm in October 2016, Weir's shares have gained about 55%, far outperforming the FTSE 100.
"Weir has gone through enormous change under (Stanton's) stewardship and we are a more focused, more successful, and more profitable business today thanks to his efforts," Chair Barbara Jeremiah said.
Succession and Analyst Reaction
Stanton's successor Neilson was the "obvious choice" for the appointment, J.P. Morgan analysts said, following his 16‑year tenure at Weir, but cautioned that the news would still weigh on shares along with first quarter performance.
Financial Results and Outlook
For the quarter ended March 31, Weir reported a 3% decline in total organic order intake after similar declines at its minerals unit, which accounts for over 71% of total group revenue.
Weir shares were down 4.4% at 2,642 pence by 1405 GMT.
Order Phasing and Regional Disruptions
The company said some order phasing and 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.
Future Guidance
It expects 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, Mrigank Dhaniwala and Keith Weir)
