Spirax Group (SPX) H2 2025 earnings summary

Executive summary

• Achieved 5% organic sales growth and 6% adjusted operating profit growth, outperforming global industrial production, with all business segments delivering organic growth and margin improvement; group margin rose to 20%.

• Completed a major restructuring, generating GBP 40 million in annualized savings, which are being reinvested in growth initiatives.

• Maintained strong cash discipline, with cash conversion at 89% and leverage reduced to 1.5x.

• ROIC increased to 13.1%, and return on capital employed improved to 36%.

Financial highlights

• Revenue reached GBP 1,702.9 million, up 2% reported and 5% organically year-over-year.

• Adjusted operating profit grew 6% organically to GBP 339.9 million, with group margin up 30bps to 20%.

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

• Adjusted free cash flow increased to GBP 199.0 million.

• Net debt/EBITDA improved to 1.5x.

Outlook and guidance

• Forecasting mid-single-digit organic sales growth for 2026, with adjusted operating profit growth ahead of sales.

• Group margin expected to progress further, targeting 22–23% medium-term, with ROIC above 15%.

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

• Conservative internal planning due to ongoing macro volatility and potential supply chain disruptions, especially in the Middle East.