Spirax posts sharp rise in H1 profit as margins widen across group

(Sharecast News) - Thermal energy and fluid technology firm Spirax Group said on Tuesday that group profits had risen sharply in the first half, with margins also improving as it delivered organic growth ahead of global industrial production and reiterated its full‑year guidance. Statutory operating profits jumped 44% to £154.2m, with statutory margins widening 490 basis points to 17.9%, while adjusted operating profits rose 8% to £171.1m and adjusted margins edged up to 19.8% from 19.3%. Group revenues grew 5% to £863.8m, well ahead of global IP of 1.8%.

Steam thermal solutions delivered 1% organic sales growth, with demand running at more than twice IP, while margins eased to 22.0%, reflecting shipment phasing and first‑half investment. However, Spirax expects higher second‑half margins and a full‑year outcome broadly in line with 2025.

Spirax's electric thermal solutions unit posted 11% organic sales growth, supported by strong demand across all divisions, including double‑digit Semicon growth. Margins expanded 220 basis points to 17.2% on operating leverage, improved mix and the absence of lower‑margin legacy orders.

Watson-Marlow fluid technology solutions grew 7% organically, with biopharmaceutical orders ahead of sales and Ppocess industries continuing to gain share. Margins improved 80 basis points to 27.5%.

Looking ahead, Spirax, which hiked its interim dividend by 3% to 50.4p, reiterated guidance for mid‑single‑digit organic revenue growth and further organic margin progress in FY26, with all three businesses expected to deliver higher second‑half sales and margins.

Chief executive Nimesh Patel said: "We have again delivered resilient mid-single-digit organic growth in revenue and profit, well ahead of IP. Driving growth ahead of our markets, in spite of external conditions, is now becoming embedded in how we operate and demonstrates the strengths of our business model and strategic positioning in diversified and attractive end markets.

"Continuing momentum in end markets such as Semicon and Biopharm as well as strong orderbooks, underpin our expectations for second half revenue and profit growth and we are reiterating our full year guidance."

As of 0815 BST, Spirax shares were down 5.82% to 7,205p.







Reporting by Iain Gilbert at Sharecast.com

See latest RNS at Investegate