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Spirax Group on Tuesday said it expects mid-single-digit organic growth in revenue in 2026, despite some potential supply chain issues in the Middle East. The Cheltenham, Gloucestershire-based thermal energy and fluid technology company said pretax profit declined 13% to £226.5 million in 2025 from £258.9 million in 2024. Operating profit also fell 13% to £265.4 million from £304.6 million, with operating margin dropping to 15.6% from 18.3%, reflecting one-off restructuring costs. Basic earnings per share decreased 15% to 221.7 pence from 259.6p. In 2025, Spirax took a charge of £34.6 million for the amortisation of acquired intangibles and a restructuring charge of £39.9 million to ‘simplify’ its organisation and ‘optimise’ its manufacturing footprint. On an adjusted basis, operating profit increased 1.8% to £339.9 million and adjusted pretax profit rose 4.4% to £301.0 million. Adjusted operating margin was broadly stable at 20%, ahead of 19.8% consensus. Revenue edged up 1.8% to £1.70 billion from £1.67 billion, ahead of £1.68 billion consensus, while organic growth was 5%, ahead of global industrial production growth of 2.1%. In response, shares in Spirax rose 4.5% to 7,375.00 pence each in London on Tuesday. The wider FTSE 100 was up 1.8%. Steam Thermal Solutions sales grew 1% organically and 3% excluding large projects in China and Korea. Electric Thermal Solutions sales increased 11% organically, supported by operational progress and improving Semicon demand. WatsonMarlow Fluid Technology Solutions sales improved 6% organically, driven by Biopharm recovery and sector focus in Process Industries. Chief Executive Officer Nimesh Patel said Spirax made ‘good progress’ across the group. ‘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,’ Patel added. Spirax lifted its final dividend to 121.1p per share from 117.5p, taking the total payout to 170.0p per share, up 3.0% from 165.0p a year ago. Looking ahead, Spirax said the global macroeconomic environment remains ‘highly uncertain’ with conflict in the Middle East and evolving trade tariffs impacting the outlook for global industrial production. Spirax anticipates mid-single-digit organic growth in revenue in 2026, noting there is potential for some disruption to supply chains from events in the Middle East. Adjusted operating profit margin is expected to increase further on an organic basis over the currency adjusted 2025 margin of 19.8%, with operating leverage driving growth in adjusted operating profit ahead of the organic growth in revenues. Spirax expects STS to deliver low-single-digit organic sales growth, ETS to report high-single-digit organic sales growth and WMFTS to achieve HSD organic sales growth. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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