Weir (WEIR · LSE)
Mining Technology for a Sustainable Future
A FTSE 100 mining equipment leader with 70%+ recurring aftermarket revenue and strong exposure to rising demand for green-transition metals like copper and lithium.
Bull case for Weir
Replacement parts drive most revenue
Rock wears metal out constantly, so mines keep buying spares whatever commodity prices do.
Winning pump trials against rivals
Weir converts over 90% of head-to-head mill pump trials, steadily taking share from competitors.
Mining software adds recurring subscriptions
Micromine sells planning software by subscription, giving Weir a second, sticky income stream.
Bear case for Weir
Earnings still tied to mining cycles
If miners cut output or delay projects, both spares and equipment orders would slow.
Acquisitions have raised debt and lowered returns
Borrowing to buy software and foundries increased leverage and diluted return on capital employed.
Factory moves and supply shocks hit margins
Relocating production and raw material shortages have already disrupted output and squeezed profitability.