Severfield — Stronger foundations in a transitional year

Severfield (LSE: SFR)

Last close As at 21/08/2026

GBP0.38

−0.30 (−0.79%)

Market capitalisation

GBP112m

More on this equity

Research: Industrials

Severfield — Stronger foundations in a transitional year

Severfield has made a positive start to 2027 despite an unchanged market backdrop with FY27 guidance for underlying PBT of £12–15m unchanged from the FY26 results on 23 June 2026. Order books have increased across all three geographies (UK and Europe, and India) providing improved revenue visibility. Recent orders include an increasing proportion of higher margin work in growth end markets such as data centres. We believe this update indicates that management are ticking all the boxes next to their strategic ambitions, which should continue to support the shares.

Written by

Jonathan Day

Director of Content, Industrials

General industrials

AGM trading update

30 July 2026

Price 36.70p
Market cap £109m

Net cash/(debt) as at 28 March

£(28.2)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

Jonathan Day
+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 4.1 10.1
3/25 450.9 18.1 4.28 1.40 8.6 3.8
3/26 454.3 10.5 2.74 0.00 13.4 N/A

In recent weeks Severfield has secured some significant project wins, primarily in data centres in the UK, Germany and Sweden, driving the UK and Europe order book up again from £507m as at 1 June 2026 to £534m, of which £375m is scheduled for the next 12 months, which is an 11% increase from the £339m as at 1 June, providing improved visibility of FY27 volumes.

Continental Europe now accounts for 32% of the UK and Europe order book compared to 28% on 1 June implying that the majority of the orders won in June were in continental Europe. Importantly, recent awards include an increasing proportion of higher-quality work, which is expected to support future margin progression and illustrates continued execution by management of their strategic ambitions to secure contracts in growing sectors, such as data centres, to support expansion of both revenue and margins. We note that this is being achieved despite an unchanged subdued macro-economic backdrop in the UK and Europe.

Severfield’s Indian joint venture JSW Severfield Structures (JSSL) (50/50 with JSW Steel) has also seen continued good momentum at the start of the year with the order book increasing by 20% in constant currency to 4,134 crore/£327m (1 June 2026 3,440 crore/£267m) reflecting successful data centre project awards and new orders from their partner JSW to support JSW’s ongoing investment. The macro-economic backdrop in India remains robust.

While Severfield continues to view FY27 as a transitional year, we think the AGM trading update shows that the foundations for improvement and execution against management’s medium-term ambitions continue to strengthen. Increased orders provide improved visibility, the quality of the order book is improving as the company works through lower-margin projects, strong growth in India continues and management continues to progress with its transformation programmes. Consequently, it is ticking all the boxes next to their medium-term ambitions, which should continue to support the shares following recent gains post FY26 results.

Severfield expects to announce H127 results for the six months ending 26 September 2026 on Tuesday 24 November 2026.

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: Consumer

Games Workshop Group — Not bad for an ‘off year’

Games Workshop Group (GAW) enjoyed a strong FY26, a year for which there were relatively low expectations at the start given the anticipated headwinds of tough comparatives from FY24 and FY25, as well as the potential negative impact from newly introduced tariffs in the US. GAW’s core business surprised on the upside from a revenue perspective as it continued to enjoy good engagement on new products released, which translated into even better gains in gross profit and operating profit. FY27 will benefit from the launch of the 11th edition of GAW’s main intellectual property (IP), Warhammer 40K, and, if the customary three-year release cycle remains in place, FY28 should see the launch of the next edition of Warhammer Age of Sigmar. The company is facing cost pressures from higher input costs following the Middle East conflict, while investing in supporting infrastructure, growing its international presence and customer engagement, which may put pressure on the level of potential operational gearing. With respect to the Amazon partnership, there is steady progress, with scripting about to begin following the completion of initial outlines.

Continue Reading
Cookie Policy Overview
Edison Group

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping us understand which section of the website you find more interesting and useful. See our Cookie Policy for more information.

Strictly necessary and functional

These cookies are used to deliver our website and content. Strictly necessary cookies relate to our hosting environment, and functional cookies are used to facilitate social logins, social sharing and rich-media content embeds.

Advertising

Advertising Cookies collect information about your browsing habits such as the pages you visit and links you follow. These audience insights are used to make our website more relevant.

Performance

Performance Cookies collect anonymous information designed to help us improve the site and respond to the needs of our audiences. We use this information to make our site faster, more relevant and improve the navigation for all users.