Trading Statement

Vesuvius plc, a global leader in molten metal flow engineering and technology, announces the following update for the period 1 July to 31 October 2025.

Summary

Over the period, revenue was broadly in line with our expectations as our end markets remain challenging but stable:

Global steel production (1) growth outside of China remained modest at 0.5% YTD despite a higher level of demand, due to persistently elevated Chinese exports

Except for India and China which continue to grow, Foundry end-markets remained weak but broadly stable

Continued market share gains in both Steel and Foundry

Price increases have been progressively implemented and are offsetting cost inflation in the second half of the year

Our structural cost reduction programme remains on track, with £18m to be delivered in 2025 and at least £55m of recurring savings expected to be achieved by 2028

During the period, we experienced some temporary production inefficiencies in our Foundry division

We expect to complete the acquisition of Morgan’s Molten Metals Systems business by mid-November, with significant synergies realised from 2027

Notwithstanding the continued tough external environment, due to our efforts around cost and pricing management, we anticipate trading profit for the full year to be broadly in line with our previous guidance

In the medium term, the market outlook is more positive, with efficient protection measures against unfair trade in steel being gradually introduced by many countries, in particular in Europe and the Americas, which are important markets for Vesuvius

World excluding China, Iran, Russia and Ukraine

Market conditions remain subdued but with a more positive medium-term outlook for the Steel markets

Steel production in the world excluding China, Iran, Russia and Ukraine remained modest (+0.5% year-on-year) despite a higher level of steel demand growth with production subdued by a further increase in Chinese net steel exports (10.2% growth YTD versus the comparable prior period).

Steel production in the world outside of China, Iran, Russia and Ukraine and Iran would have increased by 1.7% had Chinese steel exports remained stable year on year.

Over the first nine months of the year, EMEA steel production declined by 2.1%, with EU27+UK continuing to decline (-5.0%) while EEMEA grew +2.0%. North America was slightly up (+0.1%), with the US growing by 2% but offset by lower production in Mexico and Canada which both declined by over 5%. India and South-East Asia continue to exhibit strong growth (+10.5% and +8.3%, respectively) while South America contracted slightly (-1.9%) (WSA figures to end Sept 2025).

In Foundry, outside of India and China, end-markets remain subdued but stable. India continues to grow, driven by a strong domestic manufacturing sector and its infrastructure build out, while markets outside of India are yet to recover from an environment of high interest rates which has weighed heavily on the end-markets served by our Foundry customers.

Looking ahead, there are an increasing number of protection measures against unfair trade in steel which are being gradually introduced by many countries, particularly in Europe and in the Americas, which are important markets for the Vesuvius Steel division. Over 60 countries worldwide are now introducing some form of protective measures against unfair trade in steel. This, alongside domestic policy actions announced by the Chinese Government to reduce production, should ultimately support a reduction in Chinese exports, and therefore support steel production outside of China.

Stable revenue

Year-to-date revenue was slightly ahead of the prior year on a constant currency basis. Steel division revenues benefited from increased sales in Advanced Refractories with Flow Control stable, reflecting ongoing market share gains and the successful implementation of price increases. Revenue in Foundry was slightly lower versus the prior year, reflecting the year-on-year market decline, largely compensated by market share gains. Net pricing in both Steel and Foundry has progressively improved, such that increases in price are now covering the cost inflation in the second half.

Our structural cost reduction programmes remain on track, and we continue to target recurring annual savings of £55m by 2028, as previously announced, and will deliver incremental in-year savings of £18m this year.

During the period, we experienced some temporary production inefficiencies in our Foundry division.

Cashflow

We continue to actively manage the business to optimise cash generation. Our focus on disciplined control of trade working capital has successfully reduced inventory and our expectations for an overall reduction in working capital in the second half are unchanged. Additionally, expectations for a year-on-year reduction in capex to the level of £75-80m for this year are also unchanged, reflecting the conclusion of our investment capex programme. We anticipate the completion of the Molten Metals Systems acquisition by mid-November, which will result in a cash outflow of £20m in addition to the issue of new shares in our Indian listed subsidiary, Foseco India Limited. This acquisition is expected to be EPS-accretive in 2026 and onwards.

Outlook

We expect the current market conditions, particularly ongoing weakness in Europe, to persist, consistent with our previous guidance. Pricing improvements are being realised progressively and are offsetting cost inflation in H2. Notwithstanding the continued tough external environment, due to our efforts around cost and pricing management, we anticipate trading profit for the full year to be broadly in line with our previous guidance.

Looking into the medium-term, the outlook for the global steel market (ex-China) appears more supportive due to protection measures against unfair trade being gradually introduced by a large number of countries. We remain confident in the strength of our technologically differentiated business model and of our customer offering, the long-term structural growth trends that the Group is exposed to and our ability to further optimise the business in order to drive profit, margin and cashflow growth.

Technical guidance for FY25, update

* Hybrid rate based on 8 months YTD 2025 average FX rates to 30 Sept 2025 blended with current spot for 4 months

All other line-items of technical guidance given on 6 August 2025 remain unchanged.

CONFERENCE CALL

Patrick André (Chief Executive) and Mark Collis (Chief Financial Officer) will be hosting a conference call with Q&A for analysts and investors at 08:00 (UK time) today.

To participate, please register at least 30 minutes prior to the start of the call by following the link here. If your registration doesn’t come through within a few minutes, please check your “junk” inbox.

A replay of the call will be available for one week, which can be accessed via the same link above.

Vesuvius plc, 165 Fleet Street, London EC4A 2AE

Registered in England and Wales No. 8217766