Severfield’s engineering expertise, depth of talent and refreshed strategy provide strong foundations for sustainable growth and enhanced shareholder returns.
Paul McNerney
Chief Executive Officer
Strong cash management, disciplined capital allocation and our recent refinancing provide the liquidity and financial flexibility to capitalise on future opportunities.
Andrew Page
Chief Financial Officer
Financial Highlights
Financial Highlights
Revenue (£m)
£454.3m
Underlying 1 profit before tax (£m)
£10.5m
Profit/(Loss) before tax (£m)
£(39.9)m
Underlying1 operating margin (%)
2.8%
Operating margin (%)
(7.7)%
Underlying 1 basic earnings per share (p)
2.7p
Basic earnings/(loss) per share (p)
(12.0)p
Greenhouse gas intensity 2 (tonnes CO2 e/£m)
13.6 tonnes
Net debt (£m)
£28.2m
UK and Europe order book (£m)
£507m
Indian order book (£m)
£344m
1 Except as otherwise stated, ‘2026 and FY26’ and ‘2027 and FY27’ refer to the 52-week periods ending 28 March 2026 and 27 March 2027. The Group’s accounts are made up to an appropriate weekend date around 31 March each year.
Underlying results are stated before non-underlying items of £50.3m (2025: £35.6m). Non-underlying items have been separately identified by virtue of their magnitude or nature to enable a full understanding of the Group’s financial performance and to make year-on-year comparisons. They are excluded by management for planning, budgeting and reporting purposes and for the internal assessment of operating performance across the Group, and are normally excluded by investors, analysts and brokers when making investment and other decisions.
2 Scope 1 and 2 emissions, using a market-based approach.
Operational Highlights
New senior leadership team and organisational structure in place, led by Paul McNerney (CEO) and Andrew Page (CFO)
Portfolio simplification successfully completed, with the planned exit from Modular Solutions progressing as expected, enabling increased focus
Strong project execution and progression across key sectors, including Nuclear, Commercial and Industrial
Bridge remedial programme continuing to progress well and expected to be substantially complete during FY27; £15.7m increase in costs partially offset by an additional £7.5m of insurance recoveries
Capacity expansion in India progressing as planned through the development of the Gujarat facility
The order book provides good earnings visibility and supports future activity levels
FY27 is expected to be a transition year, with first half profitability continuing to reflect lower margin work secured in a tighter pricing environment, whilst several larger and higher-value projects are expected to commence later in FY27
The Board expects FY27 underlying profit before tax to be in line with previous guidance of £12m–£15m
Refreshed strategy launched
ESG Highlights
Retained MSCI’s highest ‘AAA’ ESG rating for the fifth consecutive year
Achieved CDP ‘A’ score for climate change leadership for the third consecutive year and ‘A’ for supply chain engagement for the second year running
Continued progress against approved Science-Based Net Zero targets and maintained carbon neutral accreditation for Scope 1, 2 and operational Scope 3 emissions
Procured 100% renewable electricity across all owned facilities
Recognised in the Financial Times Europe’s Climate Leaders report for the sixth consecutive year
Achieved Platinum membership of The 5% Club, reflecting our commitment to apprenticeships and other earn-and-learn programme
Our Refreshed Strategy
By focusing on areas where our engineering expertise and delivery capability provide a clear competitive advantage, we are creating a more agile, resilient and higher-return business for the future.
Paul McNerney
Chief Executive Officer
By focusing on areas where our engineering expertise and delivery capability provide a clear competitive advantage, we are creating a more agile, resilient and higher-return business for the future.
Paul McNerney
Chief Executive Officer
The Group’s refreshed strategy targets four principal goals:
Delivering profitable growth through improved margin quality, disciplined project selection and strong cash conversion.
Reinforcing our position as the leading engineering partner for complex, high-value projects, where delivery certainty is critical.
Building a high-performance culture – where our people are safe, engaged and accountable for operational excellence.
Doing good and building communities to deliver lasting value.
Strategic goals
Strategic goals
Profitable growth, balance sheet strength
Leading engineers, partner of choice
High-performance culture: safe, engaged & accountable
Doing good, building communities
Transformation enablers
Transformation enablers
Clients & Market Forces
Better connecting client needs with technical and operational capabilities
Manufacturing 360°
Optimising manufacturing performance and production capability
Engineering Excellence
Strengthening technical capability, innovative solutions and market leadership
Performance & Productivity
Improving agility, controls, cash generation and cost competitiveness
Underpinned by our focus on sustainable outcomes and ESGs (People, Planet, Partners)
Our Investment Case
Our investment case, underpinned by the Group’s new strategy and disciplined approach to capital allocation, demonstrates how Severfield aims to create long-term value for all stakeholders through sustainable growth, resilience through market cycles and attractive shareholder returns. By continuing to invest selectively in the Group’s capabilities, operational effectiveness and growth opportunities, whilst maintaining financial discipline and strong client relationships, the Board believes Severfield is well positioned to support its clients, employees, communities and investors over the long term.
Leading structural steel and engineering business across the UK, Europe and India, with established scale and delivery capability
Integrated offering spanning engineering, design, manufacturing, project management and delivery across complex projects
Strong reputation for engineering excellence, quality and delivery certainty, supporting longstanding client relationships
Differentiated technical expertise and fabrication capability create significant barriers to entry in higher-value markets
Well positioned across attractive end markets including infrastructure, energy, transport, industrial and commercial sectors
Benefitting from long-term structural drivers, including infrastructure investment, energy transition and sustainable construction demand
Ability to deploy integrated engineering expertise into selected new geographies and growth sectors, supported through strategic partnerships
India represents a significant long-term opportunity, supported by growing market demand and continued investment in capability and scale
Strategy focused on increasing participation in higher-value engineering, project management and integrated delivery activities
Transitioning towards a more flexible and less capital intensive operating model through strategic partnerships and subcontracting
Diversified exposure across sectors, clients and geographies supports greater resilience through economic cycles
Broadening the integrated offering to improve margin quality, enhance returns and reduce reliance on individual projects or markets
Continued investment in operational efficiency, digital capability and manufacturing excellence to strengthen competitiveness
Transformation programmes enhancing execution discipline, accountability and organisational effectiveness
Strong client relationships and disciplined project selection underpin the order book and long-term visibility
Disciplined capital allocation balancing strategic growth investment, financial resilience and long-term shareholder returns
Recent refinancing extends facilities to June 2029, with two extension options, and a £30m accordion facility – enhancing financial flexibility and supporting future growth opportunities
Disciplined capital allocation framework focused on growth investment, financial resilience and sustainable returns
New operating model supports a more flexible and less capital intensive growth profile in the medium term.
Positioned to support future growth investment and the resumption of sustainable shareholder distributions in the near term
Engineering expertise, people and client relationships are central to long-term success
Strong focus on safety, culture and creating an environment where employees are safe, inspired and admired
Sustainability increasingly embedded across operations, supporting responsible long-term growth
Clear roadmap to achieve Net Zero by 2040, with SBTi-approved targets aligned to recognised global climate standards
The Group maintains a disciplined
and balanced approach to capital allocation, focused on supporting long-term sustainable growth, maintaining financial resilience and delivering attractive returns for shareholders.The Group’s operating cash flows
are expected to continue supporting the ongoing requirements of the business. As the benefits of the Group’s strategic and operational initiatives are delivered in the medium term, the Board expects increasing financial flexibility to support targeted investment in growth opportunities and sustainable shareholder returns.Capital allocation priorities
include selective investment in manufacturing, digital and transformation programmes, alongside targeted growth opportunities in existing and new markets, including continued expansion in India where appropriate. Investment decisions continue to be assessed against clear financial and strategic criteria, including returns, cash generation and alignment with the Group’s long-term strategic priorities.The Group’s new operating model
is also intended to support a more flexible and less capital-intensive growth profile. Increasing use of integrated delivery models, strategic subcontract partnerships and higher-value engineering and project management activities is expected to improve operational agility, strengthen returns and enhance resilience through economic cycles.The Board remains focused
on maintaining a strong balance sheet and disciplined financial framework, preserving appropriate leverage and financial flexibility whilst supporting future growth opportunities. Consistent with this approach, the Group also remains committed to sustainable shareholder returns over the long term, supported by prudent capital allocation and improving cash generation.
How We Create Value
Severfield is the UK’s market-leading structural steel group, providing unrivalled project management, design and engineering, manufacturing and delivery solutions for a diverse range of market sectors.
Our key inputs and supply chain
Our people
Steel mills and stockholders
Sub-contractors
Market partnerships
We create value across the entire project lifecycle
Our strategic goals, enabling enhanced value
Profitable growth, balance sheet strength
Leading engineers, partner of choice
High-performance culture: safe, engaged & accountable
Doing good, building communities
The value we create
Employees
Suppliers and partners
Clients
Local communities
Shareholders
Building a Responsible and Sustainable Business
Our refreshed strategy is underpinned by sustainable outcomes and ESG priorities. By focusing on People, Planet and Partners, we are strengthening resilience, supporting our stakeholders and creating long-term value.
Paul McNerney
Chief Executive Officer
Our refreshed strategy is underpinned by sustainable outcomes and ESG priorities. By focusing on People, Planet and Partners, we are strengthening resilience, supporting our stakeholders and creating long-term value.
Paul McNerney
Chief Executive Officer
Our Approach to Sustainability
Sustainability continues to be a key priority for the Group and is embedded within our refreshed strategy, supporting long-term value creation, resilience and responsible business practices across our operations.
3Ps Sustainability Framework
Our 3Ps Sustainability Framework comprises three pillars – ‘People’, ‘Planet’ and ‘Partners’ – each reflecting our commitment to operating responsibly and ethically.
People
Increasing positive impact on our people and communities.
Planet
Growing our business whilst reducing our impact.
Partners
Supporting our clients and driving innovation within our supply chain.