Spirax says tariff uncertainty affecting customer decisions
By Benjamin Chiou
Date: Wednesday 14 May 2025
(Sharecast News) - Manufacturing group Spirax delivered a cautious outlook on Wednesday, saying that the uncertainty caused by trade tariffs is impacting customers' capital investment decisions.
The company, which specialises in thermal energy and fluid technology solutions, said it delivered low single-digit organic growth in revenues in the first quarter.
That was despite lower demand for large projects in Steam Thermal Solutions (STS), particularly in China and South Korea - which accounted fore more than a fifth of STS revenues in 2024 - where conditions remain "challenging".
However, adjusted operating profit margins were slightly lower due to customers' phasing of some order shipment dates to later into the year.
Looking ahead to the rest of 2025, Spirax said it was keeping its outlook "while recognising that the evolving broader macroeconomic impact of tariffs remains uncertain".
"Our local manufacturing mitigates the direct exposure of tariffs and we expect to manage the financial impacts through surcharges, pricing and limited reorganisation of manufacturing activity," the company said.
Revenues growth and adjusted operating margins are expected to rise in the second half, as lower demand for large projects in STS is offset by growth elsewhere.
Shares were down 4.8% at 6,270p by 0827 BST.
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