Sparks - Severfield

After a tough year in FY26, management expects the company to report underlying PBT in line with market expectations and that net debt will be materially lower than forecasts at c £28m (Consensus: £48.5m), at least in part due to the receipt of a further £7.5m of insurance monies relating to the bridge remedial works.

Order books are elevated, but market conditions are currently subdued across the whole of Europe. The UK and Europe order book stood at £438m at 1 March, down from £479m on 1 January 2026, while in India, the JV’s order book rose from £286m on 1 November, to £331m on 1 March.

The outlook is being dampened by market conditions in the UK and Europe for obvious reasons and as a result, some large projects have been delayed to the second half of FY27. Therefore, the company is now adopting a more cautious approach to underlying PBT for FY27 and is guiding market expectations to a range of £12–15m. Edison is currently forecasting FY27e underlying PBT of £18.2m. The company expects to report FY26e results on 23 June.