Severfield hit by margin squeeze as job delays impact | Construction Enquirer News

The structural steel giant said underlying pre-tax profit for the year to 28 March 2026 will hit market expectations at around £10.2m. But behind the steady headline number, profitability is being squeezed by major project delays. A £438m UK and Europe order book continues to provide the steelwork contractor with visibility. But several higher-value schemes have slipped, pushing start dates into the back end of FY27. That shift is leaving Severfield more exposed to near-term work secured in a fiercely competitive market, where pricing remains tight and margins thinner. Bosses said subdued demand across industrial, stadia and commercial sectors — driven by weak business confidence and high interest rates — is slowing decision-making and delaying project awards. The group has plugged gaps in workload through continental Europe to maintain factory utilisation, but at lower returns. Cash control has also strengthened the balance sheet, with net debt expected to be well below forecasts at around £28m, leaving roughly £39m of headroom. Severfield has also clawed back £27.5m from insurers linked to its bridge remedial works issue after a further £7.5m payment since the half-year. Looking ahead, the group struck a cautious tone amid energy price volatility and geopolitical disruption dropping guidance on FY27 pre-tax profit to £12m to £15m, around a third lower than market expectations.