Spirax expects further organic growth despite market weakness

(Sharecast News) - Spirax Group managed to grow organic revenues across the board in 2024 despite industrial production growth being weaker than expected in the second half. The thermal energy and fluid technology solutions company posted annual revenues of £1.67bn, up 4% on an organic basis but 1% lower in reported terms due to currency movements. However, this was in line with the guidance given at the pre-close trading update in November.

The Steam Thermal Solutions division saw organic revenue growth of 1% trends improving in the second half; Electric Thermal Solutions experienced 10% organic growth, supported by operational improvements; while the Watson‐Marlow Fluid Technology Solutions business posted organic growth of 3%, driven by Process Industries, while Biopharm orders are said to have started to recover.

Adjusted operating profit totalled £334m, up 4% organically, helped by a 10-basis point organic improvement in the adjusted operating profit margin to 20.1%.

For 2025, Spirax pointed to organic growth consistent with 2024, with further "progress" on the margin front. Meanwhile, restructuring efforts should result in annualised benefits of £35m for investment in organic growth, the company said.

"Mindful of the outlook for IP, I remain confident in the execution of our strategy and in the strength of our business model, which together will sustain organic sales growth well ahead of IP and mid-single digit organic profit growth in 2025," said chief executive Nimesh Patel.