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Vesuvius lowers profit outlook following operational issues in its steel division

UK-based engineering company Vesuvius Plc has revised its 2026 profit outlook downward, citing ongoing operational issues in its steel division and higher-than-expected costs stemming from weak market conditions in Europe.

Vesuvius lowers profit outlook following operational issues in its steel division

According to the company, trading profit for the first half of 2026 is expected to be approximately GBP 74 million.

Vesuvius said that since its last trading update in May, operational issues within its Steel Division have continued, while its Advanced Refractories business has faced challenging market conditions, particularly in Europe.

The company stated that the operational issues are temporary in nature and that corrective actions are ongoing. However, it acknowledged that the financial impact of these issues has been greater than previously anticipated. Vesuvius expects the problems to be fully resolved by the end of the year.

In light of these developments, the company now expects trading profit for the 2026 financial year, on a constant currency basis, to be only modestly above the GBP 151.1 million reported for the 2025 financial year.

Vesuvius also noted that the 2025 financial year trading profit would amount to approximately GBP 147 million when recalculated using the average exchange rates for the first half of 2026 together with the exchange rates prevailing at the end of June.

The company, which develops technologies for controlling the flow of molten metal in steelmaking and foundry operations, also announced that it will report its first-half 2026 financial results on Thursday.

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