Highlights

  • UK and Europe order book at GBP 429m supports visibility for H2 revenues in FY26.
  • Underlying profit before tax decreased to GBP 0.6m, reflecting lower volumes and pricing pressures.
  • India joint venture achieves record order book of GBP 286m with improved operating output.

Severfield plc (LSE:SFR)  the UK structural steel group, reported its interim results for the six-month period ended 27 September 2025. Revenue decreased to GBP 206.0m in H1 FY26 from GBP 252.3m in H1 FY25, a reduction of 18%. Underlying operating profit before joint ventures and associates was GBP 2.3m, down from GBP 17.2m the previous year. The underlying profit before tax fell to GBP 0.6m (H1 FY25: GBP 16.1m), while the statutory loss before tax was GBP 7.6m, compared with a GBP 5.8m loss in H1 FY25. Underlying basic earnings per share were 0.2p (H1 FY25: 4.0p) and basic loss per share was 1.9p (H1 FY25: 1.4p). No interim dividend was declared (H1 FY25: 1.4p per share).

Financial Position and Cash Flow

Net debt on a pre-IFRS 16 basis decreased to GBP 21.7m from GBP 43.1m at FY25 year-end. This included amortising term loans of GBP 13.8m and GBP 8.0m drawn under the revolving credit facility (RCF), providing over GBP 50m in facility headroom. The Group received GBP 20.0m in insurance proceeds for bridge remedial works. Operating cash flow before working capital movements and bridge costs was GBP 1.3m. Net working capital decreased by GBP 13.4m, and net capital expenditure totaled GBP 1.4m, partially offset by GBP 3.0m proceeds from asset disposal. The RCF maturity was extended to December 2027, and a share purchase option agreement with JSW Steel provides the option to dispose of up to 24.9% of the Indian joint venture by March 2026.

Operational Performance

UK & Europe
The UK and Europe order book stood at GBP 429m at 1 November 2025, with GBP 324m for delivery in the next 12 months. Core Construction Operations revenue declined 19% to GBP 199.3m, with Commercial and Industrial revenue falling 30% to GBP 143.5m and Nuclear and Infrastructure increasing 32% to GBP 55.8m. Key projects in progress included the Agratas battery gigafactory, an energy-from-waste facility in London, and Project ONE in Antwerp.

Modular Solutions
Revenue of GBP 9.6m decreased slightly from GBP 9.8m, with an underlying operating loss of GBP 1.1m. The division’s performance was affected by delays in high-margin orders and lower recoveries from the factory overhead mix.

India (JSSL)
The joint venture reported revenue of GBP 65.8m, up 34% from GBP 49.3m, and operating profit of GBP 4.7m. Output increased to 48,000 tonnes from 31,000 tonnes. The Group’s share of profit after tax was GBP 1.0m (H1 FY25: GBP 0.1m). The Indian order book reached GBP 286m at 1 November (1 July: GBP 240m). Production expansion at Gujarat is underway, with capacity expected to increase from 114,000 tonnes to 184,000 tonnes in FY26.

Outlook

Management expects FY26 results to remain in line with prior guidance. UK and European markets remain competitive, particularly in structural steelwork, though tendering activity is improving in sectors such as distribution and data centres. India continues to present growth opportunities with an expanding order book and new production facilities.

Share Price Snapshot
SFR was trading 2.35% lower at GBX 29.10 per share as of 02 December 2025.