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RNS Number : 0294E  Spirax Group PLC  13 May 2026

13 May 2026

Trading update in respect of the four months ended 30 April 2026

Organic growth in line with expectations across all Businesses; full-year
guidance reiterated

Economic environment

Macroeconomic uncertainty remained elevated, with conflict in the Middle East
adding to the ongoing trade tariff developments and higher energy costs
weighing on industrial production growth.  Global IP(1) in Q1 2026 was 1.4%,
remaining weak in key European markets. Excluding China, IP was 1.5% with the
full year forecast of 1.9% broadly unchanged from February and weighted to the
second half.  We remain cautious on the IP outlook as reflected in our
guidance.

 

Trading

We continued to execute against our strategic priorities, delivering organic
growth ahead of IP alongside margin progression.

Demand trends were consistent with those highlighted in our 2025 full year
results in March.

In STS(2), demand grew ahead of IP and in line with our expectations,
supported by sustained strength in MRO and solutions across all regions and
some recovery in large project demand.  Demand in China and Korea also
continued to recover.  ETS(2) delivered double-digit demand growth across all
divisions, including continuing strong growth in Semicon(3).  In WMFTS(2),
 demand remained robust in both Process Industries and Biopharm(3).

As a result, we delivered mid-single-digit organic growth in Group revenues.
Group adjusted operating profit margin improved on an organic basis compared
to the same period in 2025.

 

Financial Position

Net borrowings (excluding leases) at the end of the first quarter were £575
million (31 December 2025: £565 million), representing a net debt to EBITDA
ratio of 1.5x (31 December 2025: 1.5x).  The final dividend of 121.1 pence
per share, representing a 3% increase over 2024 and a cash impact of £89
million, will be paid on 22 May 2026, subject to shareholder approval.

 

Outlook

We have delivered organic growth across the Group in the first four months of
the year in line with our expectations and despite the weak IP environment, we
reiterate our guidance for 2026. We anticipate mid-single-digit organic growth
in Group revenues well ahead of IP; and an increase in Group adjusted
operating profit margin on an organic basis.  We continue to expect organic
growth in revenue and adjusted operating profit margin to be higher in the
second half of the year, reflecting our usual seasonal profile.

1 'IP': Industrial Production growth; source: CHR Economics, April 2026

2 'STS': Steam Thermal Solutions; 'ETS': Electric Thermal Solutions; 'WMFTS':
Watson-Marlow Fluid Technology Solutions

3 'Biopharm': WMFTS sales to the Pharmaceutical & Biotechnology sector;
'Semicon': ETS sales to the Semiconductor Wafer Fabrication Equipment
Manufacturing sector

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

 

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)

 

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