Vesuvius has released FY24 results which are slightly ahead of consensus expectations. It delivered robust trading, relatively, in weak end markets while gaining market share and delivering cost savings. The outlook is understandably cautious and management expectations of flat profits are c.5% below consensus. Results summary Resilient trading in a tough end market environment, driven by its differentiated offering, market share gains and pricing. FY24 revenues decreased 5.7% y-o-y (-1.8% underlying) to £1,820.1m (consensus £1,825.0m / INVe £1,818.8m) with lower volumes offset by pricing and market share gains. The adjusted operating margin contracted by 10bps to 10.3% resulting in operating profit of £188.0m (consensus £184.9m / INVe £185.5m), down 6.2% y-o-y (-0.2% underlying). EPS decreased 7.2% to 43.3p (consensus 41.9p / INVe 42.0p), and the dividend is increased 2.2% to 23.5p (consensus 23.1p / INVe 23.3p). Net debt/EBITDA increases to 1.4x (from 0.9x). Outlook Given continued weakness in Steel and Foundry markets, uncertain recovery timing and geopolitical volatility, management remains cautious. It currently anticipates FY25 trading profit at a broadly similar level to FY24 on a constant currency basis and including the contribution from the PiroMET acquisition, while FY25 cashflow will be significantly ahead y-o-y, benefiting its working capital focus and a normalisation of capex. Targets Understandably, management is now aiming to achieve its RoS target of >12.5% by 2028 and to deliver its cumulative £400m free cash flow target by 2027 – both set for 2026 at its CMD in November 2023. This is partially dependent on a return to normal end market conditions and supported by a £15m extension to its cost reduction programme – now £45m by 2028.