After two profit warnings due to ‘challenging’ markets and problem bridge contracts, the share price has fallen by c.75%, but we believe the long-term growth prospects for the UK’s leading steel construction specialist remain sound. We introduce estimates for FY27E that, even with conservative assumptions, indicate a doubling in earnings. A more realistic scenario suggests even greater upside. Both scenarios imply low single-digit PERs, with a dividend yield in double figures. In this update, we discuss Severfield’s earnings potential and continuing growth opportunities.