Castings Public Limited Company · LSE:CGS
Castings Public — Castings — H1 FY2026 Earnings Presentation
26 slides from Castings Public's earnings presentation, September 2025
Slide 1: Interim results
Interim results September 2025 1
Slide 2: Subdued demand, new capacity ready to capitalise on up-turn
Subdued demand, new capacity ready to capitalise on up-turn A challenging period: ough landscape: • Volumes broadly flat at 20,950 tonnes • Volumes down 21% (L4L) to es • Operating profit £4.8m (FY25 - £3.5m) • Operating profit £4.8m (FY24 - £ • Heavy truck market subdued – EU and US • Heavy truck m
Slide 3: Servicing a cyclical market
Servicing a cyclical market • Heavy truck demand in Europe down slightly further • US market now following suit - uncertainty • Strong demand at Ductile Castings from broader customer base • Management actions to right-size cost base • Operating margin increased to 5.5% (FY25H1 – 3.9%) • Diversifica
Slide 4: Capacity investment now operational
Capacity investment now operational • 12,000 tonnes foundry capacity • Provides capacity to quote for more diversified work • 10,500 sales capacity (estimated) • Increases our size offering • First new foundry line since 2000 • Enhanced sustainability credentials • Improved efficiency www.castings.p
Slide 5: European heavy truck registrations
European heavy truck registrations European heavy truck registrations (calendar year) 400,000 350,000 • 75% of revenue (FY25 - 75%) 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 6: Revenue following cyclical heavy truck sector
Revenue following cyclical heavy truck sector Revenue bridge (£m) • Sales weight broadly static 92.0 • Up 0.7% vs FY25H1 0.6 • Down 18% v FY24H1 90.0 89.2 (0.9) 88.0 (0.9) (0.4) 87.6 • Reflects flat heavy truck market 86.0 • Slight reduction in mix of machined parts 84.0 (62% v 65%) 82.0 • Energy su
Slide 7: Quarterly sales tonnes – consistent with FY25H1
Quarterly sales tonnes – consistent with FY25H1 Quarterly sales weight (tonnes) 16,000 17.5% 15,288 14,000 17.1% 13,607 13,311 12,000 19.8% 12,658 12,636 12,329 11,879 11,843 11,275 10,997 10,000 10,275 9,953 9,524 9,026 8,000 6,000 4,000 2,000 0 Q1 Q2 Q3 Q4 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 F
Slide 8: 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 9: Performance KPIs for the period
Performance KPIs for the period £m (unless stated) FY25H1 FY26H1 • Revenue down 1.8% Revenue 89.2 87.6 • Gross margin 18.0% (FY25H1 – 16.8%) Operating profit 3.5 4.8 Operating margin 3.9% 5.5% • Operating profit up 37.2% EPS 7.07p 8.58p • Interim dividend maintained Interim dividend 4.21p 4.21p Free
Slide 10: Strong dividend track record
Strong dividend track record Ordinary dividend declared per share 20 9.3% 10.0% Supplementary 18 9.0% dividends: 16 7.5% 8.0% • 2016 – 30p 6.9% 14 7.0% 6.4% 12 5.6% 6.0% • 2019 – 15p Pence / share 5.0% 5.0% 5.0% 10 4.7% 4.7% 4.7% 5.0% 4.3% 4.3% • 2022 – 15p 3.8% 8 3.5% 4.0% 3.1% 6 2.9% 2.6% 2.6% 3.0
Slide 11: Foundry segment
Foundry segment £m (unless stated) FY25H1 FY26H1 • External revenue down 1.9% Gross revenue 99.6 97.1 • Volume (tonnes) up 0.7% Less: inter-group revenue (11.0) (10.4) External revenue 88.6 86.7 • Selling price impacted by: • Lower mix of machined parts Foundry sales weight (tonnes) 20,800 20,950 •
Slide 12: Machining remains profitable at lower volumes
Machining remains profitable at lower volumes £m (unless stated) FY25H1 FY26H1 • Gross revenue down 5.6% Gross revenue 16.1 15.2 • External revenue slightly up – remains Less: inter-group revenue (15.5) (14.5) group focussed External revenue 0.6 0.7 • Segmental result down £ 0.3m Segmental result 1.
Slide 13: Summary cash flow statement
Summary cash flow statement £m FY25H1 FY26H1 • Increased profit levels PBT net of tax payments 3.4 3.6 • Inventory reduction and lower Depreciation 4.2 4.3 volumes aid working capital Working capital movement (6.7) 7.7 Capex (net) (6.8) (9.2) • Investment continues on new foundry Free cash flow (5.9
Slide 14: 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 15: Outlook – trading in line with full year market expectations
Outlook – trading in line with full year market expections • Truck market • Capital investment • Demand normalised in short-term • New foundry complete • Scania CBE engine to MAN from 2025 • Machine replacement programme • Light duty truck electrification • Automation / multi-manning • Energy effici
Slide 16: 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 17: Appendix
Appendix 17
Slide 18: 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 19: The Castings group
The Castings group Castings PLC William Lee Limited Castings Ductile Ltd CNC Speedwell Ltd Foundry – founded 1835 Foundry – acquired 1991 Foundry – acquired 2024 Machinist – acquired 1996 Capacity* Employees Capacity* Employees Capacity Employees Capacity Employees 30,000 347 52,000# 385 7,000 61 Ov
Slide 20: Established, long-standing customer base
Established, long-standing customer base www.castings.plc.uk 20
Slide 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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