Spirax reports better-than-expected first half, shares pop
By Josh White
Date: Tuesday 12 Aug 2025
(Sharecast News) - Spirax Group reported first-half results that exceeded analyst expectations on Tuesday, sending shares soaring, as the company reaffirmed full-year guidance despite macroeconomic headwinds.
For the six months ended 30 June, group revenue fell 1% to £822.2m on a reported basis but rose 3% organically, outpacing global industrial production growth.
Adjusted operating profit was broadly flat at £158.8m, up 7% organically, with margins improving to 19.3% organically.
Statutory operating profit fell 27% to £106.8m, reflecting restructuring costs and currency headwinds, while profit before tax dropped 30% to £87.9m.
The FTSE 100 company lifted its interim dividend 3% to 48.9p.
It said its electric thermal solutions division led growth with a 10% organic increase, aided by stronger semiconductor demand, while Watson-Marlow Fluid Technology Solutions grew 2% organically, with biopharma orders up more than 10%.
Steam thermal solutions sales were flat but ahead of expectations, particularly outside China.
Management said it was expecting second-half sales growth to accelerate, margins to improve and cash conversion to exceed 80%.
CEO Nimesh Patel said results were "in line with expectations despite the challenging macroeconomic environment," citing strong order books and progress on operational priorities as support for the unchanged outlook.
He added that efficiency programmes were funding investment in "digital and decarbonisation" initiatives.
Analysts described the update as resilient.
Jefferies said the results were ahead of consensus and highlighted "stand-out" performance in electric thermal solutions.
RBC Capital Markets noted the beat across all divisions and said the outcome "helps de-risk unchanged full-year guidance," though it cautioned on ongoing steam market weakness in China.
Citi said order momentum in Watson-Marlow and the turnaround in electric thermal solutions could offer "upside potential to consensus," while Shore Capital said the figures boosted confidence despite macro and currency risks.
At 0905 BST, shares in Spirax Group were up 15.01% at 6,969.48p.
Reporting by Josh White for Sharecast.com.
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