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Spirax Group PLC on Thursday said its full-year guidance was unchanged, despite noting slower industrial production due to ‘continued weakness in key markets’. The Cheltenham, Gloucestershire-based thermal energy and fluid technology company was previously known as Spirax-Sarco Engineering. During the nine months that ended September 30, the company’s global industrial production excluding China grew at a rate of 1.6%, compared to 1.7% in the six months ended June 30. As a result, Spirax lowered its full-year growth target to 1.6%. This remains ahead of the 0.8% growth rate it had reported in 2024. The firm pointed to slower trading in markets such as Germany, France, Italy, the UK and US, saying: ‘Uncertainty around the broader impact of tariffs on global trade has persisted and continues to dampen business confidence and demand for large projects.’ For the four months ended October 31, organic sales in the Steam Thermal Solutions branch remained ‘broadly level’ on-year, as ‘challenging’ conditions persisted. Spirax noted a more moderate decline in China, on an organic basis, compared to the first half, alongside recovery in Korea, where it expects to report an improved second-half performance. Ignoring negative impacts on large projects in China and Korea, Spirax said STS sales were higher than the previous year. Its Electric Thermal Solutions business maintained growth momentum during the four months to the end of October, as Process Heating increased shipments from its order book and legacy pipeline, and Equipment Heating benefitted from demand for ‘Semicon equipment solutions’. Spirax was also positive on the Watson-Marlow division and its ‘strong overall organic sales growth’. ‘We have continued to focus on the strategic priorities within our control to drive growth and margin. As a result, both group organic sales growth and adjusted operating profit margin for the ten months ended 31 October were ahead of organic growth and margin in the first half,’ Spirax said. Spirax backed its annual outlook, and sees the full-year adjusted operating profit margin ahead of the 20% currency-adjusted margin posted in 2024. It added that restructuring efforts have positioned the company for roughly £35 million in annualised savings, with costs tracking as expected, and likely ‘to be mostly incurred in 2025’. Spirax shares rose 3.1% to 7,305.00 pence on Thursday morning in London, having gained 15% in the last 12 months. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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