REG - Stelrad Group PLC - Full Year Trading Update

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RNS Number : 9992Q  Stelrad Group PLC  30 January 2026

30 January 2026

Stelrad Group plc

("Stelrad" or "the Group")

Full Year Trading Update

 

Further growth in operating profit and contribution per radiator

 

Stelrad Group plc ("Stelrad" or "the Group", LSE: SRAD), a leading specialist
manufacturer and distributor of steel panel and other designer radiators in
the UK, Europe and Turkey, today issues a Trading Update for the twelve months
ended 31 December 2025.

 

Trading update

The Group delivered another year of adjusted operating profit growth, despite
the ongoing suppression of volumes across Stelrad's core UK and European
markets, as detailed in the Group's November 2025 Trading Update.

 

Revenue for the year was c.£280m, reflecting a small improvement in volumes
in the second half versus the first half. Although overall volumes declined by
4% year-on-year, there was encouraging progress in a number of key markets.

 

The Group also successfully implemented further proactive margin management
and cost reduction activities across its manufacturing sites, resulting in a
further improvement in our contribution per radiator KPI for the eighth
consecutive year.

 

The improvement in contribution per radiator, benefitting from enhanced
product mix, and strong fixed cost control, is expected to deliver
year-on-year growth in the Group's adjusted operating profit of c.3% to
c.£32.5m (FY24: £31.5m), in line with market expectations. This represents
an adjusted operating profit margin of 11.6% (FY24: 10.8%).

 

Through strong cash management, the Group's net debt before lease liabilities
reduced to £51.2m (2024: £59.7m) and the leverage ratio improved further
during the year to 1.16x (2024: 1.37x). In December 2025, the Group's £100m
loan facility was successfully renewed, which will reduce the Group's future
borrowing costs.

 

We continue to assess opportunities to improve the Group's competitive
position and operational efficiency. Prior to the year-end, and following the
earlier restructuring of our Turkish operations, we restructured our Danish
business which will further enhance future operational margins while incurring
an exceptional expense of c.£2.7m in the second half of 2025.

 

Outlook

Although there remains a level of uncertainty around the timing of the wider
market recovery, with RMI and new build activity remaining subdued, the
Group's margin management initiatives undertaken in 2025, alongside the
continued delivery against the Group's strategic growth drivers, provide a
robust platform for further progress during 2026.

 

Stelrad's leading market position, sustainable competitive advantages and
ongoing focus on operational excellence give the Board confidence in the
Group's long-term positioning while structural growth drivers continue to
underpin demand for higher-margin, higher added value products.

 

The Group intends to report annual results for 2025 on 13 March 2026.

 

 

 

 

Trevor Harvey, Chief Executive of Stelrad, commented:

"During 2025, Stelrad continued to demonstrate and enhance its operational
excellence, underpinned by our core competitive advantages of a flexible,
low-cost manufacturing footprint, outstanding customer service and unmatched
product availability. These allowed us to continue to deliver growth in
operating profits and margins, despite the subdued market environment.

 

"While persisting market headwinds remain frustrating, our performance in the
last year further evidences Stelrad's ability to continue to deliver against
our strategy irrespective of market conditions.

 

"The ongoing execution of our strategy underpins my confidence that Stelrad is
well-placed to deliver sustained growth and, longer term, is incredibly well
positioned to benefit from the eventual market recovery."

 

- ENDS -

 

For further information:

 

 Stelrad Group plc                                   +44 (0)191 261 3301

 Trevor Harvey, Chief Executive Officer

 Leigh Wilcox, Chief Financial Officer

 Investec (Joint Corporate Broker)                   +44 (0) 207 597 4000

 Ben Griffiths / David Anderson / Tom Brookhouse

 Singer Capital Markets (Joint Corporate Broker)     +44  (mailto:stelrad@powerscourt-group.com) (0) 20 7496 3000

 Graham Hertrich / Sara Hale / James Todd

 Sodali & Co                                          stelrad@sodali.com (mailto:stelrad@sodali.com)

 James White / Pete Lambie                           +44 (0)7855 432 699

 

Notes to Editors

Stelrad Group plc is Europe's leading specialist radiator manufacturer,
selling an extensive range of hydronic, hybrid, dual fuel and electrical heat
emitters to more than 500 customers in over 40 countries. These include
standard, premium and low surface temperature (LST) steel panel radiators,
towel warmers, decorative steel tubular, steel multicolumn and aluminium
radiators.

 

The Group has five core brands: Stelrad, Henrad, Termo Teknik, DL Radiators
and Hudevad.  The Group is market leader by volume in the combined UK,
European and Turkish steel panel radiator market, with market share of 19.3%.
Excluding the Russian market, Stelrad's share was 24.2% in 2024.  The Group
is market leader in six countries - the UK, Ireland, France, the Netherlands,
Belgium and Denmark, with a top 3 position in a further 12 territories in
2024.

 

Stelrad is headquartered in Newcastle upon Tyne in the UK and in 2024 employed
1,400 people, with manufacturing and distribution facilities in Çorlu
(Turkey), Mexborough (UK), Moimacco (Italy) and Nuth (Netherlands), with
further commercial and distribution operations in Kolding (Denmark) and Krakow
(Poland).

 

The Group's origins date back to the 1930s and Stelrad enjoys long established
commercial relationships with many of its customers, having served each of its
top five current customers for over twenty years.

 

Further information can be found at: https://stelradplc.com/
(https://stelradplc.com/) .

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