Severfield — New CEO brings revived optimism

H126 results were expected to show year-on-year declines but management is expecting to achieve FY26 consensus profits, which implies an H226 result that is materially better than H225. The outlook, especially into FY27, looks increasingly encouraging, which should not only drive demand but also lead to improved pricing and underpin margin improvement. The CEO’s strategy review, anticipated in H1 CY26, is likely to be evolutionary, offering a renewed future. Our estimates are marginally trimmed and, with the stock trading on a P/E of 6x to FY27e, we believe there is upside to risks.