Earnings spark at Spirax despite volatile market conditions.


Spirax Group posted improved annual earnings on Tuesday and forecast further organic growth this year despite "volatile" market conditions.

Spirax Group

Source: Sharecast

The engineering blue chip, which specialises in thermal energy and fluid technology solutions, saw revenues rise 2% in the year to December end to £1.7bn, or by 2% on a reported basis.

Adjusted operating profits were 6% stronger at £339.9m, but fell 13% on a statutory basis, to £265.4m, hit by unfavourable currency movements and one-off restructuring costs.

Spirax's largest division, steam thermal solutions, saw organic revenues tick up 1% to £853.4m. There was stronger growth elsewhere, however, with electric thermal solutions 11% higher at £441.3m and Watson-Marlow up 6% at £408.2m.

Chief executive Nimesh Patel said the company had made good progress during the year, despite a "volatile and uncertain" macroeconomic backdrop.

He continued: "We delivered these results while also successfully completing a significant operational efficiency and simplification programme, generating material cost savings that are funding disciplined investment in future growth."

Looking to the current year, Spirax acknowledged that the macroeconomic environment remained "highly uncertain, with conflict in the Middle East and evolving trade tariffs impacting the outlook for global industrial production, which is an important driver of demand across our three businesses”.

However, despite being "cautious" about the outlook for industrial production, Spirax - formerly known as Spirax-Sarco Engineering - guided for mid-single-digit organic revenue growth. It also forecast that the adjusted operating profit margin would increase on an organic basis over the currency-adjusted 2025 margin of 19.8%.


ISIN: GB00BWFGQN14
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