Vesuvius

Website: Vesuvius
Index: FTSE 250
EPIC: VSVS
Supersector: Industrial Goods and Services
Sector: General Industrials
Subsector: Diversified Industrials
Market Cap: £1.16B
Payout Frequency: Semi-Annual

Vesuvius Dividend Analysis and Summary

Key Dividend Details

Proposed final dividend: 16.5p per share (FY24: 16.4p)
Full-year dividend (FY25): 23.6p per share (+0.4% YoY)
Ex-dividend date: 28/05/2026
Record date: 29/05/2026
Payment date: 06/07/2026
Dividend cover: 1.5x (based on adjusted EPS of 34.2p; implied payout ratio c. 69%)
Policy: Progressive – at least maintain the dividend and grow it through the cycle in line with EPS
DRIP election deadline: 12/06/2026

Financial Context and Support

Adjusted trading profit: £151.1m (?17% like-for-like); Return on Sales: 8.4% (?170bps)
Adjusted EPS: 34.2p (?21%); statutory EPS: 21.1p
Free cash flow: £36.0m vs dividends paid in FY25 of £57.9m (FCF did not cover cash dividends in the year)
Net debt/EBITDA: 2.0x (top end of 1.0–2.0x target range); management guides for deleveraging in 2026
Capex: £81.0m in 2025, guided to £70–75m in 2026; cost-savings programme to add c. £10m in 2026

Dividend Sustainability and Growth

Sustainability: The dividend is modestly covered (1.5x) on adjusted EPS but is not covered by FY25 free cash flow. Cash cover should improve in 2026 if expected profit recovery, lower capex and savings materialise.
Growth trajectory: FY25 DPS edged up +0.4%, consistent with a progressive policy but reflecting earnings softness. With adjusted EPS down materially in 2025, near-term DPS growth is likely to remain cautious until EPS and FCF strengthen.
Capital allocation: Despite weaker profits, the company maintained DPS and executed £34.8m buybacks and two acquisitions. With leverage at the top of target, further buybacks may be more selective until deleveraging progresses, which would help underpin dividend capacity.

Structural Changes and Policy Considerations

M&A: Acquisitions of PiroMET (Turkey; 61.65%) and MMS (non-ferrous foundry exposure, incl. India) completed; integration progressing. These broaden exposure to higher-growth geographies and non-ferrous, potentially supporting medium-term cash flows and dividend resilience.
Share buybacks: Second £50m programme largely executed in FY25 (shares reduced c. 3%), modestly lowering future dividend cash outflow. Pace of future buybacks likely to depend on leverage and cash generation.
No demergers or share consolidations disclosed. Final dividend subject to AGM approval on 28/05/2026.

Risks and Flags to Dividend Stability

Cash coverage shortfall in 2025 (FCF < dividends) and reduced profitability (ROS down, adjusted EPS -21%).
Leverage at the top of the target range (2.0x) and higher net finance costs (guided £20–21m for 2026) constrain headroom.
End-market weakness, especially EMEA, pricing pressure, and product mix effects; recovery outlook still dependent on trade protection measures and macro conditions.
Integration execution risk on recent acquisitions and delivery risk on cost-saving targets.
On a statutory basis, EPS (21.1p) is below DPS (23.6p), highlighting reliance on adjusted metrics and improvement in trading to sustain the dividend.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
24/04/2025	06/06/2025	Final	16.40p	GBX
14/08/2025	19/09/2025	Interim	7.10p	GBX

Total (Annual Dividends Per Share): 23.50p

Dividend Yield = Annual Dividends Per Share (23.50p) ÷ Share Price (466.4p) = 5.04%

Ex Dividend Date	Payment Date	Type	Amount	Currency
28/05/2026	06/07/2026	Final	16.5000p	GBX
14/08/2025	19/09/2025	Interim	7.10p	GBX
24/04/2025	06/06/2025	Final	16.40p	GBX
08/08/2024	13/09/2024	Interim	7.10p	GBX
18/04/2024	31/05/2024	Final	16.20p	GBX
03/08/2023	15/09/2023	Interim	6.80p	GBX
20/04/2023	31/05/2023	Final	15.75p	GBX
04/08/2022	16/09/2022	Interim	6.50p	GBX
14/04/2022	27/05/2022	Final	15.00p	GBX
05/08/2021	17/09/2021	Interim	6.20p	GBX
15/04/2021	21/05/2021	Final	14.30p	GBX
29/10/2020	04/12/2020	Interim	3.10p	GBX
16/04/2020	22/05/2020	Final	14.30p	GBX
08/08/2019	20/09/2019	Interim	6.20p	GBX
18/04/2019	24/05/2019	Final	13.80p	GBX
09/08/2018	21/09/2018	Interim	6.00p	GBX
12/04/2018	25/05/2018	Final	12.50p	GBX
10/08/2017	22/09/2017	Interim	5.50p	GBX
06/04/2017	19/05/2017	Final	11.40p	GBX
11/08/2016	23/09/2016	Interim	5.15p	GBX
07/04/2016	20/05/2016	Final	11.13p	GBX
13/08/2015	25/09/2015	Interim	5.15p	GBX
09/04/2015	22/05/2015	Final	11.13p	GBX
13/08/2014	26/09/2014	Interim	5.00p	GBX
23/04/2014	23/05/2014	Final	10.25p	GBX
28/08/2013	07/10/2013	Interim	4.75p	GBX

Year	Interim	Final	Currency	Total	Change
2024	7.100	16.200	GBX	23.300	3.320
2023	6.800	15.750	GBX	22.550	4.880
2022	6.500	15.000	GBX	21.500	4.870
2021	6.200	14.300	GBX	20.500	17.810
2020	3.100	14.300	GBX	17.400	-13.000
2019	6.200	13.800	GBX	20.000	8.100
2018	6.000	12.500	GBX	18.500	9.460
2017	5.500	11.400	GBX	16.900	3.800
2016	5.150	11.130	GBX	16.280	0.000
2015	5.150	11.130	GBX	16.280	6.750
2014	5.000	10.250	GBX	15.250	221.050
2013	4.750		GBX	4.750

Number of Shares:

Payment	Paid	Amount
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