Spirax confident on FY outlook as growth accelerates in H2

(Sharecast News) - Engineering specialist Spirax said on Wednesday that trading momentum had strengthened in recent months, with both organic sales growth and profit margins running ahead of first-half levels, leaving the firm confident of meeting its full-year guidance. Spirax said group organic revenue growth and adjusted operating profit margins for the 10 months ended 31 October were in line with expectations and ahead of the first half, supported by continued execution of its "Together for Growth" strategy.

Steam thermal solutions recorded stronger organic sales growth in the four months ended October than in the first half, benefiting from deliveries against a larger order book and continued order momentum. China revenues were expected to be broadly in line with 2025 levels for the full year as growth in maintenance, repair and operations activity offsets weaker large-project demand.

Electric thermal solutions continued its strong performance, driven by robust demand for process heating and heat trace products, while equipment heating benefited from increased semiconductor-related activity. Spirax also said ETS growth excluding semiconductor customers remained above its medium-term target range.

In Watson-Marlow Fluid Technology Solutions, biopharmaceutical sales growth accelerated, with orders continuing to outpace sales, while process industries benefited from ongoing market share gains.

The FTSE 100-listed group also reported an improved financial position, with net borrowings falling to £541.6m at the end of October from £618.2m at the end of June, reducing net debt-to-EBITDA to 1.3x from 1.6x.

Looking ahead, Spirax reiterated guidance for mid-single-digit organic revenue growth, a full-year adjusted operating margin above the 20% achieved in 2025 and cash conversion of around 90%.

As of 0900 GMT, Spirax shares were up 4.15% at 7,660p.







Reporting by Iain Gilbert at Sharecast.com

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