Severfield — First step in reshaping strategy

Severfield (LSE: SFR)

Last close As at 03/02/2026

GBP0.29

0.10 (0.34%)

Market capitalisation

GBP84m

More on this equity

Research: Industrials

Severfield — First step in reshaping strategy

The renewed optimism at Severfield that we referred to in our December note appears to be playing out with the closure of the Modular Solutions business and the increasing momentum in the UK and European order book. Full-year expectations remain unchanged and investors can look forward to a revised strategy update from the new management team this year.

Andy Murphy

Written by

Andy Murphy

Director of content, industrials

General industrials

Closure of business unit

4 February 2026

Price 29.00p
Market cap £86m

Net (debt) at 30 September 2025

£(21.7)m

Shares in issue

296.2m
Free float 100.0%
Code SFR
Primary exchange LSE
Secondary exchange N/A
Price Performance

Business description

Severfield is a market-leading UK structural steelwork fabricator operating across a broad range of market sectors, now with a Dutch subsidiary. An Indian facility undertakes structural steelwork projects for the local market in a joint venture with India’s largest steel producer, JSW Steel.

Analyst

Andy Murphy
+44 (0)20 3077 5700

Severfield is a research client of Edison Investment Research Limited

Note: PBT and EPS are on an underlying, diluted, company basis, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Year end Revenue (£m) PBT (£m) EPS (p) DPS (p) P/E (x) Yield (%)
3/24 463.5 36.5 8.85 3.70 3.3 12.8
3/25 450.9 18.1 4.28 1.40 6.8 4.8
3/26e 449.6 9.9 2.50 0.00 11.6 N/A
3/27e 458.6 18.3 4.62 0.00 6.3 N/A

Severfield’s new leadership team, under the guidance of new CEO Paul McNerney, has been undertaking a strategic review of the group’s markets, operations and organisational structure. The board has decided that its Modular Solutions business is a sub-scale, non-core activity and, following consideration of the strategic options available to it, has decided to discontinue the operation. The Construction Metal Forming joint venture (JV) will continue to operate as a separate entity and is unaffected.

In the year to March 2025 Modular Solutions generated revenue of £24.2m and an operating profit of £0.4m. However, its markets have proved to be more challenging in the current financial year. The closure does not change management’s full-year expectations for underlying PBT or net debt for the group. Modular Solutions will be treated as a discontinued operation at year-end and the cash impact is not expected to be material in the period.

The new CEO, who was appointed on 3 November 2025, stated in the closure announcement: ‘I was clear that my priorities were to redefine our strategy, strengthen our manufacturing and delivery capabilities, drive greater efficiency, and reinforce our focus on engineering excellence for our customers… This marks an important early step in reshaping our strategy, and we will provide a broader update on the growth strategy for our core business during 2026.’

Severfield continues to focus on growth industries that exhibit high barriers to entry. These include transport infrastructure, nuclear power, commercial offices, industrial facilities and data centres. The signs are encouraging as the UK and European order book is gaining momentum. In February 2025 it stood at £403m, in November it had grown to £429m, and by 1 January 2026 it had expanded to £479m. In the group’s half-year results in December, a similar growth pattern was reported for the group’s Indian JV, which at that point had grown its order book from £240m in July 2025 to £286m on 1 November.

General disclaimer and copyright

This report has been commissioned by Severfield and prepared and issued by Edison, in consideration of a fee payable by Severfield. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright 2026 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or sol icitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

More on Severfield

View All

Latest from the Industrials sector

View All Industrials content

Research: Healthcare

Recce Pharmaceuticals — Recce expands US government collaborations

Recce announced that it signed a second Cooperative Research and Development Agreement (CRADA) with the US Army. This new arrangement with the US Army Institute of Surgical Research (USAISR) will study whether RECCE 327 Gel (R327G) will reduce the bioburden of Methicillin-resistant Staphylococcus aureus (MRSA) and Pseudomonas aeruginosa on burn wounds using the USAISR Walker-Mason rat model. The expanding US government interest in R327 across multiple therapeutic applications signals added external validation of the company’s proprietary synthetic broad-spectrum anti-infective platform, which has already shown very encouraging activity against multidrug resistant bacterial strains.

Continue Reading