Spirax Group (SPX) H2 2025 earnings summary

Executive summary

• Delivered 5% organic sales/revenue growth and 6% adjusted operating profit growth, outperforming global industrial production (IP), with all business segments achieving growth and margin improvement; group margin rose to 20%.

• Completed significant restructuring, generating GBP 40 million in annualized savings, funding investments in growth and digital capabilities.

• Maintained strong cash discipline, improved cash conversion to 89%, reduced leverage to 1.5x, and increased ROIC to 13.1%.

Financial highlights

• Revenue reached GBP 1,702.9 million, up 2% reported and 5% organically year-over-year; currency movements negatively impacted sales by 3%.

• Adjusted operating profit was GBP 339.9 million, up 2% reported and 6% organically, with group operating margin at 20%, up 30 basis points.

• Adjusted EPS increased 3% to GBP 2.963 per share; full-year dividend up 3% to GBP 1.70 per share.

• Adjusted free cash flow rose to GBP 199.0 million from GBP 173.2 million.

• Net debt at GBP 564.7 million, equating to 1.5x EBITDA.

Outlook and guidance

• Forecasting mid-single-digit organic sales growth for 2026, with adjusted operating profit growth expected to outpace sales.

• Medium-term group margin target set at 22–23%, with ROIC expected to exceed 15%.

• Segment guidance: low single-digit growth for STS, high single-digit for ETS and Watson-Marlow.