Spectris (SXS) Q1 2025 TU earnings summary

Executive summary

• Strategic progress on acquisition integration and profit improvement program, despite ongoing end-market softness and customer order delays into 2025.

• Acquisitions are performing well, providing incremental new orders and expected to drive significant profit growth in 2025.

• April trading showed a strong rebound, with double-digit growth in Scientific orders and sales, improving the outlook for Q2.

• Q1 sales declined 2% on a constant currency basis, with the order book up 4% and a book-to-bill ratio of 1.07.

• The Profit Improvement Programme is ahead of target, with at least GBP 30 million in 2025 savings and GBP 50 million run-rate by 2026.

Financial highlights

• Q1 sales down 2% on a constant currency basis; like-for-like sales (excluding acquisitions) down 8%.

• Reported Q1 2025 sales were GBP 299.0 million, down from GBP 309.4 million in Q1 2024.

• New print sales (including acquisitions, excluding disposals) up 5% on a constant currency basis.

• Order book at quarter-end increased to GBP 529 million, up 4% on a constant currency basis, with a book-to-bill of 1.07.

• Net debt at end of March was GBP 502 million, improved from December due to working capital seasonality and strong cash generation.

Outlook and guidance

• Expectation to offset direct tariff impacts through pricing power and supply chain flexibility; indirect effects remain uncertain.

• Profit improvement program and acquisitions to deliver at least GBP 60 million incremental profit in 2025.

• Guidance for strong growth in adjusted operating margin in 2025 remains unchanged, with H2 expected to be stronger due to program weighting.

• April's strong performance supports a recovery in Scientific, with Q2 expected to be flat year-over-year.

• Focus remains on cost control and leveraging acquisitions for profit growth.