Vesuvius plc (VSVS), the global leader in molten metal flow engineering and technology, has published its autumn trading update covering the period 1 July to 30 September 2026. The company reports that its Flow Control and Foundry business units are trading ahead of the same period last year on a constant-currency basis, while Advanced Refractories continues to face significant headwinds, particularly in Europe. Full-year 2026 trading profit is forecast to be broadly in line with FY25 on a constant-currency basis, a guidance statement that constitutes a formal profit forecast under Rule 28 of the City Code on Takeovers and Mergers.

Key Points

  • Vesuvius plc (VSVS) — global molten metal flow engineering and technology group listed in the UK
  • Flow Control and Foundry divisions are both ahead of the prior year year-to-date on a constant-currency basis; Advanced Refractories profitability remains significantly impacted
  • FY26 trading profit expected to be broadly in line with FY25 on a constant-currency basis; cost savings of at least £55m targeted by 2028, with approximately £10m to be delivered in 2026
  • Investors may be watching progress on the North America operational recovery and the ongoing context of a potential approach from RHI Magnesita N.V.

Flow Control Net Pricing Strength and MMS Integration Drive Foundry Gains

In Flow Control, the announcement states that strong net positive pricing is more than offsetting lower volumes, with revenue and trading profit year-to-date ahead of the prior year on a constant-currency basis despite unmet demand in North America caused by operational disruptions identified earlier in the year. In Foundry, Vesuvius reports that both revenue and trading profit have continued to improve year-to-date, reflecting the benefits of integrating the MMS acquisition alongside positive underlying trading performance. Markets in China, India, and North America are described as growing or improving for the Foundry division, though Europe remains subdued.

North America Production Backlog Significantly Reduced Ahead of Year-End Target

Vesuvius confirms that the operational issues primarily affecting its North America sites — which have weighed on Advanced Refractories profitability throughout the year — are now largely addressed, with production backlogs described as materially reduced. The company states it remains confident these issues will be substantively resolved by the year end. In India, the announcement notes continuing improvements in manufacturing stability at the Vizag facility. Advanced Refractories revenue year-to-date is described as at a similar level to 2025 in all major regions except EMEA, where a challenging pricing environment has compounded the impact on profitability.

FY26 Profit Forecast Issued Under Takeover Code Rule 28 Amid RHI Magnesita Context

The guidance that FY26 trading profit is expected to be broadly in line with FY25 on a constant-currency basis constitutes a formal profit forecast under Rule 28 of the City Code on Takeovers and Mergers. The announcement notes that the Panel on Takeovers and Mergers, with the agreement of RHI Magnesita N.V., has consented to the disapplication of the requirement for reporting accountant and financial adviser reports on the forecast. Directors have confirmed the forecast remains valid and has been properly compiled. FY25 trading profit on a re-translated constant-currency basis was £147.2m, with return on sales of 8.2%.

Cost Savings Programme and Working Capital Progress Support Outlook

Vesuvius reaffirms its commitment to delivering cost savings of at least £55m by 2028, with approximately £10m expected to be achieved in 2026. The company states that working capital intensity continues to improve and that leverage remains similar to the position at the half-year. Steel production outside China, Ukraine, Russia, and Iran rose 3.1% in the nine months to 30 September 2026, with positive momentum in North America, India, and South-East Asia. Chief Executive Patrick André and Chief Financial Officer Mark Collis hosted a conference call for analysts and investors on the morning of the announcement.