REG - Spirax Group PLC - 2025 Full Year Results

SpiraxAnnouncement

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RNS Number : 9254V  Spirax Group PLC  10 March 2026

10 March 2026

2025 Full Year Results

Strategy delivering growth well ahead of IP with margin progress; expect
continued organic growth in 2026

Twelve months to 31 December

 Statutory (£m/p)          2025     2024     Reported
 Revenue(1)                1,702.9  1,665.2  2%
 Operating profit          265.4    304.6                    (13)%
 Operating profit margin   15.6%    18.3%    (270)bps
 Profit before taxation    226.5    258.9    (13)%
 Basic earnings per share  221.7    259.6    (15)%
 Dividend per share        170.0    165.0    3%

 

 Adjusted(6) (£m/p)                 2025     2024     Reported                          Organic(4)
 Revenue(1)                         1,702.9  1,665.2                      2%                                  5%
 Adjusted operating profit          339.9    333.9                        2%                                  6%
 Adjusted operating profit margin   20.0%    20.1%              (10)bps                                30bps
 Adjusted profit before taxation    301.0    288.2                     4%
 Adjusted basic earnings per share  296.3    286.3                     3%
 Adjusted cash conversion           89%      87%                200bps

 

 ●    Group revenue up 5% organically and well ahead of global IP(2) of 2.1% (IP
      excluding China: 1.7%)
 ●    STS(3) sales up 1% organically and 3% excluding large projects in China and
      Korea
 ●    ETS(3) sales up 11% organically, supported by operational progress and
      improving Semicon(5) demand
 ●    WMFTS(3) sales up 6% organically, driven by Biopharm(5) recovery and sector
      focus in Process Industries
 ●    Group adjusted operating profit up 6%; adjusted operating margin up 30bps
      organically to 20%
 ●    Restructuring completed with £40 million of annualised savings funding
      investment in growth
 ●    Lower statutory operating profit and margin reflect one-off restructuring
      costs
 ●    Improved adjusted cash conversion of 89% and leverage reduced to 1.5x; ROIC
      higher at 13.1%

 

Nimesh Patel, Group Chief Executive Officer, commenting on the results said:

"At our 2024 Capital Markets Day, we set out our path to achieve
mid-single-digit organic sales growth, margin progress and improving returns
on capital over the medium term.  We are delivering on that commitment
against a continuing volatile and uncertain macroeconomic backdrop, which is a
testament to the strength of our unique business model and the focused
implementation of our Together for Growth strategy.

"In 2025, we made good progress across the Group: STS achieved above IP
organic growth in MRO and solution-sales globally; continued operational
improvement in ETS drove increased throughput and sales growth; and in WMFTS,
Biopharm sales growth accelerated through the second half as we had expected,
while Process Industries continued to grow well ahead of IP.  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.

"Looking ahead to 2026, we anticipate good organic growth and further margin
progress as we continue to build on our long track record of value creation
through compounding growth and disciplined capital allocation."

The results are available in full at
http://www.rns-pdf.londonstockexchange.com/rns/9254V_1-2026-3-9.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9254V_1-2026-3-9.pdf)

 

 

(1) 'Sales' is used interchangeably with 'revenue' when describing the
financial performance of the Group

(2) 'IP': Industrial Production growth (February 2026)

(3) 'STS': Steam Thermal Solutions; 'ETS': Electric Thermal Solutions;
'WMFTS': Watson-Marlow Fluid Technology Solutions

(4) Organic measures are at constant currency and exclude contributions from
current and prior year acquisitions and disposals

(5) 'Semicon': semiconductor wafer fabrication equipment manufacturers;
'Biopharm': Pharmaceutical & Biotechnology sector

(6) See Appendix to the Financial Statements for an explanation of alternative
performance measures and reconciliation to IFRS(

)

For further information, please contact:

 Louisa Burdett, Chief Financial Officer:  +44 (0) 1242 240281
 Mal Patel, Head of Investor Relations:    +44 (0) 1242 240281

 

Media

 

 Martin Robinson, Teneo:  +44 (0) 20 7260 2700
 spiraxgroup@teneo.com

 

 

Audio webcast

The results presentation will be available as a live webcast from 9.30 am on
the Company's website at http://www.spiraxgroup.com/
(http://www.spiraxgroup.com/) or via the following link:
https://edge.media-server.com/mmc/p/ya5r67dz/

A recording will be made available on the website shortly after the meeting.

 

About Spirax Group plc

Spirax Group is positioned to play a critical role in enabling the industrial
transition to net zero, aligned to our Purpose to create sustainable value for
all our stakeholders as we engineer a more efficient, safer and sustainable
world.  We put solving customers' problems at the heart of our total
solutions approach.  Our global thermal energy and fluid technology solutions
improve operating efficiency and safety in our customers' critical industrial
processes.  Our new-to-world decarbonisation* solutions will use our
proprietary technologies to electrify boilers for the raising of steam, as
well as the electrification of other critical industrial process heating
applications.

Spirax Group comprises three strong and aligned Businesses: Steam Thermal
Solutions helps customers control and manage steam within their mission
critical industrial applications, such as cleaning, sterilising, cooking and
heating.  We are helping to put food safely on the world's tables and keeping
our hospitals running. Electric Thermal Solutions has proprietary technologies
that deliver electrification solutions at scale in industrial settings,
including for the raising of steam, supporting our customers to achieve their
net zero goals. We also deliver freeze protection and defrost solutions
critical to aviation and space industries and ensure thermal uniformity in
Semiconductor chip manufacturing to power the critical electronic systems we
rely on.  Watson‐Marlow Fluid Technology Solutions is engineering vital
fluid technology solutions that optimise the efficient use of resources and
support advancements in global health, such as lifesaving vaccines and gene
therapies.

Spirax Group is headquartered in Cheltenham (UK). We have over 30
strategically located manufacturing plants around the world and are committed
to creating a safe and inclusive working culture for our 10,000 colleagues,
operating in nearly 70 countries and serving over 100,000 customers
globally.

The Company's shares have been listed on the London Stock Exchange since 1959
(symbol: SPX) and we are a constituent of the FTSE 100 and the FTSE4Good
Indexes.

 

* Eliminates scopes 1 and 2 greenhouse gas emissions when connected to a green
electricity source.

 

Further information can be found at spiraxgroup.com
(http://www.spiraxsarcoengineering.com)

 

RNS filter: Results

LEI 213800WFVZQMHOZP2W17

 

SUMMARY FINANCIALS

 Twelve months to 31 December                      FY 2025  FY 2024  y-o-y change
                                                   £m       £m       Organic*  Reported
 SUMMARY FINANCIALS

 Steam Thermal Solutions (STS)                     853.4    867.9    1%        (2)%
 Electric Thermal Solutions (ETS)                  441.3    404.6    11%       9%
 Watson-Marlow Fluid Technology Solutions (WMFTS)  408.2    392.7    6%        4%
 Group Revenue                                     1,702.9  1,665.2  5%        2%

 STS                                               167.8    198.9              (16)%
 ETS                                               40.4     46.1               (12)%
 WMFTS                                             96.9     90.3               7%
 Corporate                                         (39.7)   (30.7)
 Group Statutory Operating Profit                  265.4    304.6              (13)%

 STS                                               19.7%    22.9%              (320)bps
 ETS                                               9.2%     11.4%              (220)bps
 WMFTS                                             23.7%    23.0%              70bps
 Group Statutory Operating Profit Margin           15.6%    18.3%              (270)bps

 STS                                               200.3    204.1    3%        (2)%
 ETS                                               71.3     64.7     12%       10%
 WMFTS                                             107.0    99.0     13%       8%
 Corporate                                         (38.7)   (33.9)
 Group Adjusted Operating Profit*                  339.9    333.9    6%        2%

 STS                                               23.5%    23.5%    40bps     -
 ETS                                               16.2%    16.0%    20bps     20bps
 WMFTS                                             26.2%    25.2%    160bps    100bps
 Group Adjusted Operating Profit Margin*           20.0%    20.1%    30bps     (10)bps

 Cash flow
 Statutory net cash from operations                296.2    312.8              (5)%
 Adjusted cash from operations*                    301.5    291.5              3%
 Adjusted cash conversion*                         89%      87%                200bps
 Net debt*                                         564.7    596.2              (5)%
 Leverage (net debt to EBITDA)*                    1.5x     1.6x

* See Appendix to the Consolidated Financial Statements for an explanation of
alternative performance measures and reconciliation to IFRS

GROUP CHIEF EXECUTIVE OFFICER'S REVIEW

Summary of 2025 performance

Group organic sales growth of 5% was well ahead of IP.  Organic growth in
adjusted operating profit was 6% with the adjusted operating profit margin of
20.0% higher by 30bps organically.  All three Businesses delivered organic
sales growth and higher adjusted operating profit margins.  Currency
movements adversely impacted sales by 3% and adjusted operating profit by 4%.

Our Group continued to focus on the operational priorities within our control,
including driving growth through MRO and solution-selling, as well as
delivering improvements in manufacturing throughput, particularly in ETS.  We
protected margins against cost inflation and tariff impacts through pricing
discipline and efficiency savings, as well as completing our restructuring
which will deliver annualised savings of £40 million, with approximately half
realised in 2025.  Operating leverage from organic sales growth and the
savings from restructuring funded our investments in sales headcount, customer
digital connectivity, digital tools for sales effectiveness, new product
development and new decarbonisation solutions, all of which will drive future
compounding growth.  Even with these investments, the Group delivered a
higher-than-normal drop-through from the organic increase in sales to profit.
 I am grateful to my colleagues around the world for their strong execution
of the priorities in our Together for Growth strategy and for their commitment
to delivering for all our stakeholders despite the more volatile and uncertain
economic environment.

Global Industrial Production growth (IP) of 2.1%, or 1.7% excluding China, was
lower than had been forecast at the beginning of the year and remained weak
throughout the year in our key markets. As expected, trading conditions in
China reflected customers' reduced expenditure on large projects.  In Korea,
political instability early in the year led to capital investment decisions
being temporarily deferred.

STS organic sales growth was 1% despite weaker than expected IP, with good
growth in MRO and solution-sales offset by anticipated weakness in large
projects, particularly in China and Korea which are more exposed to customers'
capital spending than other regions.  However, as expected, the weakness in
large project demand in China and Korea moderated through the year.
Excluding these large project sales, STS organic sales growth was 3% and well
ahead of IP, demonstrating the successful execution of our Commercial
Excellence initiatives.  STS margin of 23.5% was 40bps ahead of 2024
organically, with restructuring savings mostly reinvested in growth drivers.

ETS organic sales growth of 11% was supported by strong demand growth in all
three Divisions.  In Process Heating, sales growth was delivered through
continued operational progress in driving higher shipments from the large
order book, supplemented by a large contract win from a datacentre focused OEM
customer.  Equipment Heating benefited from continuing Semicon demand,
supplemented by growth in Nuclear and Aerospace & Defence.  In Heat
Trace, we saw the early benefits of our now separate and focused team of sales
engineers targeting new sectors, regions and customers, with growth driven in
the USA and by expansion in EMEA.  Operating leverage from sales growth,
offset by the shipments of residual lower margin legacy orders (now largely
completed) and initial running costs for the new Medium Voltage (MV) facility
in Ogden, delivered a 20bps organic improvement in ETS margin to 16.2%.

WMFTS organic sales growth was 6%, supported by strong growth in Process
Industries, well ahead of IP, led by our sales teams in the Americas, as well
as EMEA, where we moved from a geographic to a sectorised focus in early 2025.
 In Biopharm, sales growth accelerated through the second half driven by
continuing orders growth of over 10%.  WMFTS margin was up by 160bps
organically with second half operational gearing from higher sales and supply
chain efficiencies partly offset by investment in growth drivers.

Dividend

The Board is proposing a final dividend of 121.1 pence per share for 2025
(2024: 117.5 pence) payable on 22 May 2026 to shareholders on the register at
24 April 2026. Together with the interim dividend of 48.9 pence per share
(2024: 47.5 pence), the total dividend for the year is 170.0 pence per share,
an increase of 3% on the total dividend of 165.0 pence per share in 2024,
reflecting confidence in a return to higher levels of growth and margins.
The total amount of dividends paid in the year was £122.8 million, 3% above
the £119.3 million paid in 2024.

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