UK's Spirax forecasts higher sales growth in 2026 as China trading improves (updated)
10/03/2026 10:17
Updates throughout with additional details and analyst comment
March 10 (Reuters) - British manufacturing firm Spirax Group SPX.L on Tuesday forecast mid-single-digit organic revenue growth in 2026, with sales in its biggest steam thermal business expected to accelerate as trading in China improves, sending its shares 4% higher.
The company's steam thermal solutions division, which supplies industrial and commercial steam systems used in heating and cooking among others, has seen weak demand for large projects over the last several quarters as customers delayed spending amid tariff uncertainty.
This impact was felt most significantly in China, the company said, after sales in the steam thermal solutions segment rose only 1% in 2025.
However, weakness in demand improved sequentially over the year, the company noted, with the unit's organic sales expected to grow in the low single digits in 2026 as demand in China improves and revenue growth in the rest of the world remains well ahead of industrial production.
Spirax also warned that the conflict in the Middle East, which accounts for about 1% of its revenue, could disrupt some supply chains, with the impact expected in the first half of 2026.
Brokerage firm Jefferies said that despite geopolitical risks faced by all UK industrial firms, Spirax is well-positioned for a year of earnings per share growth.
The UK-based company's adjusted profit before tax of 301 million pounds for fiscal 2025 beat average market expectations of 291 million pounds, according to a company-compiled consensus.
(Reporting by Neeshita Beura in Bengaluru; Editing by Mrigank Dhaniwala and Jonathan Ananda)
((Neeshita.Beura@thomsonreuters.com))