Castings Public Limited Company · LSE:CGS
Castings Public — Castings P.L.C. — FY2025 Earnings Presentation
31 slides from Castings Public's earnings presentation, Mar 31, 2025
Slide 1: Final results
Final results 31 March 2025 1
Slide 2: Challenging year, high levels of investment, dividend increase
Challenging year, high levels of investment, dividend increase A tough landscape: A tough landscape: • Volumes down 21% (L4L) to 40,000 tonnes • Volumes down 21% (L4L) to es • Operating profit £4.8m (FY24 - £19.8m) • Operating profit £4.8m (FY24 - £ • Heavy truck market “normalised” • Heavy truck ma
Slide 3: Key points from the year
Key points from the year • Sales volumes worsened in each of first three quarters; Q4 slightly improved • European market tough, especially Germany • US market more resilient for longer, but then tariff uncertainty • Volume related energy penalties • Energy surcharges continue to reduce • Machine sh
Slide 4: The scale of the capacity investment
The scale of the capacity investment www.castings.plc.uk 4
Slide 5: The scale of the capacity investment
The scale of the capacity investment www.castings.plc.uk 5
Slide 6: Capacity investment near to commissioning stage
Capacity investment near to commissioning stage • 12,000 tonnes foundry capacity • Provides capacity to quote for more diversified work • 10,500 sales capacity (estimated) • Increases our size offering • £17m investment (on budget) • Maximum efficiency • Summer 2025 • Enhanced sustainability credent
Slide 7: Castings Ductile Limited
Castings Ductile Limited • Acquired certain assets from administration on 14 June 2024 • Production commenced in July 2024 • Large iron casting business – up to 7 tonnes • Customer base in power generation and infrastructure markets • Majority of historical customer relationships retained • 20% more
Slide 8: Volume based revenue reduction
Volume based revenue reduction 224.4 • Reduction in volume of 21% • Continued increase in mix of machined parts (65.9% v 63.3%) 4.0 (42.0) 177.0 • Energy surcharges reducing (8.2) (1.0) • Other minor reductions FY24 Volume Work mix Energy Other FY25 www.castings.plc.uk 8
Slide 9: European heavy truck registrations
European heavy truck registrations European heavy truck registrations (calendar year) 400,000 350,000 • 75% of revenue (FY24 - 80%) Units registered 300,000 • 2023 peak of 344k trucks • Normalisation of demand Volvo estimate Volvo estimate 250,000 200,000 • 2025: 290k estimate (Volvo) 2024 (ACEA) -
Slide 10: Quarterly sales tonnes
Quarterly sales tonnes Foundry (excluding Castings Ductile) quarterly external sales weight (tonnes) 16,000 FY17 15,288 14,000 FY18 13,607 13,311 12,000 FY19 12,658 12,617 12,329 11,879 11,843 11,275 10,000 FY20 10,267 9,524 FY21 9,026 8,000 6,000 FY22 FY23 4,000 FY24 2,000 FY25 0 Q1 -17% Q2 -20% Q3
Slide 11: Supplying top six European OEMs
Supplying top six European OEMs • Supply top 6 in the European market • Cross-over into US and South America • Typical product lifecycle of 7 – 10 years • Scania market share recovery Source: Scania Annual and Sustainability Report 2023 • Impact of exposure to German market Based on market in 2024 i
Slide 12: A challenging year
A challenging year • Week economic back-drop in Europe £m (unless stated) FY24 FY25 Revenue 224.4 177.0 • Heavy truck volumes down c. 20% Operating profit 19.8 4.8 • Inefficiencies at lower volume Operating margin 8.8% 2.7% EPS 38.45p 9.60p • Workforce maintained where possible Return on capital emp
Slide 13: Segmental result per tonne
Profit per tonne sold Profit and segmental profit per sales tonne • Volume related decline 450 60,000 400 55,000 • Previously three years 350 of increases Segmental result per tonne 300 50,000 Sales tonnes 250 200 45,000 • Similar to Covid-19 150 40,000 year 100 35,000 50 • Positive machining 0 30,0
Slide 14: Progressive ordinary dividend policy continues
Progressive ordinary dividend policy continues 20.00 9.3% 10% 18.00 9% Supplementary 16.00 7.5% 8% dividends: 6.9% 14.00 6.4% 7% • 2016 – 30p Pence per share 12.00 5.6% 6% 5.0% 5.0% 5.0% 4.7% 4.7% 4.7% 10.00 4.3% 5% 4.3% 8.00 3.5% 3.8% 4% • 2019 – 15p 2.9% 3.1% 6.00 2.7% 2.6% 3% 4.00 1.9% 1.9% 2% •
Slide 15: Foundry performance on low volumes
Foundry performance on low volumes £m (unless stated) FY24 FY25 Gross revenue 251.0 197.9 Less: inter-group revenue (28.5) (22.4) • External revenue down 21% External revenue 222.5 175.5 • Volume down 19% Foundry sales weight (tonnes) 50,450 41,000 • Selling price impacted by: Average selling price
Slide 16: Another solid machining performance
Another solid machining performance £m (unless stated) FY24 FY25 Gross revenue 37.6 32.2 • Gross revenue down 14% Less: inter-group revenue (35.7) (30.7) • Low external revenue – group focussed External revenue 1.9 1.5 • EBITDA of £6m Segmental result 3.7 2.0 • Q1 higher volumes Segmental margin on
Slide 17: Summary cash flow statement
Summary cash flow statement £m FY24 FY25 • Reduced profit levels PBT net of tax payments 18.9 4.6 • Working capital Depreciation 8.9 8.9 • Broadly neutral in the year Working capital movement (7.2) (1.5) • Inventory reduction during FY26 Capex (net) (9.4) (19.7) • Increased investment (£11m on new F
Slide 18: Strong sustainability credentials
Strong sustainability credentials • ‘Green Iron’ producer, unlike some of • First sustainability report published Europe • First solar panel project operational • Zero scope 1 and 2 emissions on location- based measure, working on scope 3 • Seeking further solar approval • Process recycler • Energy
Slide 19: Automation investment continues
Automation investment continues • £13.5m investment in automation Automated feedline cells FY25 • First investment in 2016 FY24 • 65 robotic handling and processing FY23 cells FY22 FY21 • Production efficiency FY20 FY19 • Typical payback in 2 – 3 years FY18 FY17 • Exploring use of AI FY16 • Metal tr
Slide 20: Top commercial vehicle customer revenue mix
Top 4 commercial vehicle customer revenue mix FY11 FY16 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Customer A 23% 25% 30% 29% 28% 28% 23% 25% 27% 28% B 11% 13% 13% 13% 13% 14% 15% 15% 17% 17% Commercial vehicle C 1% 4% 8% 10% 9% 10% 12% 11% 11% 10% 76% (FY24 - 80%) D 10% 9% 10% 10% 9% 7% 7% 9% 9% 7% To
Slide 21: Outlook
Outlook • Truck market • Capital investment • Demand normalised in short-term • New foundry completes this summer • Potential schedule increases in autumn • Machine replacement programme • Scania CBE engine to MAN from 2025 • Automation / multi-manning • Light duty truck electrification • Energy eff
Slide 22: Well positioned for growth
Well positioned for growth Strong balance sheet providing the platform for growth Balance sheet platform Opportunities Cash levels Invest to drive production efficiencies No debt New foundry opens doors to new business (diversification) Pension buy-in to buy-out Castings Ductile broadens range offer
Slide 23: Appendix
Appendix 23
Slide 24: Timeline
Timeline 1835 Foundry production commences in Walsall 1907 Castings Limited incorporated 1957 Move to current Brownhills location 1960 Floated on Birmingham stock market 1991 Foundry capacity increased through acquisition of William Lee Limited 1996 Machining started in group through acquisition of
Slide 25: The Castings group
The Castings group Castings plc William Lee Limited Castings Ductile Limited CNC Speedwell Limited Foundry | Brownhills Foundry | Dronfield Foundry | Scunthorpe Machinist | Brownhills Founded: 1835 Acquired: 1991 Acquired: 2024 Acquired: 1996 Capacity*: 30,000t Capacity*: 40,000t# Capacity: 30,000t
Slide 26: Established, long-standing customer base
Established, long-standing customer base www.castings.plc.uk 26
Slide 27: Revenue and PBIT
0 20 40 60 80 100 120 140 160 180 200 220 240 FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 Revenue Revenue and PBIT FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 PBIT (excluding exceptionals) FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 PBIT% (RHS) FY21 FY22 FY23 www.castings.plc.
Slide 28: Track record of strong cash generation
Track record of strong cash generation 40 Wm Lee CNC 35 30 25 20 15 10 5 0 FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Dividend (supplementary) Net capex Pension co
Slide 29: Strategy
Strategy Deliver long term sustainable revenues and higher average margins through the following strategic priorities: Reinvestment for innovation and efficiency Increase OEM market share • Innovative design processes • Collaborative, dedicated customer teams • Reinvestment in automation • Increase
Slide 30: Business Model
Business Model Design collaboration & our people Value for stakeholders • Experienced teams • Technical knowledge Customers • Close customer relationships • Flexibility, cost-effective, quality • Latest design simulation • Capability for diverse range • Long term security Foundry production • High v
Slide 31: Recent investments
Recent investments • Robotic handling and processing (started 2016) • Warehouse management system (started 2017) • Bespoke FIFO system in Brownhills • £1m+ investment • Heat treatment plant for alloyed parts (commissioned 2020) • £0.6m investment • Disa moulding line upgrade (completed December 2021