Stelrad Group (SRAD) H1 2026 earnings summary

Executive summary

• Delivered strong profit growth and margin expansion despite a 9.1% revenue decline year-over-year, driven by operational excellence, strategic exits from low-margin contracts, and a 14.6% drop in sales volumes.

• Maintained European market leadership with a 24% share in steel panel radiators, holding #1 positions in several core markets and a 3.9 ppt lead over the nearest competitor.

• Reinforced strategic focus on premiumisation, decarbonisation, and targeted market share growth, particularly in Germany and Poland.

• Operational and commercial initiatives optimized the cost base, driving profit growth and margin expansion despite challenging market conditions.

• Strong customer service with a 98.5% on-time-in-full delivery rate in the UK & Ireland.

Financial highlights

• Revenue declined 9.1% year-over-year to £124.0m, mainly from lower demand and exit from a loss-making contract (£5.0m impact).

• Adjusted operating profit rose 4.9% to £16.7m, with margin up 1.8 ppts to 13.5%.

• Adjusted EPS increased 16% to 7.43p, aided by higher profit and lower interest costs.

• Interim dividend increased by 5% to 3.19p per share.

• Contribution per radiator increased to £24.32 (2025: £20.33), reflecting improved sales mix and margin management.

Outlook and guidance

• Full-year outlook unchanged; trading in H2 to date is in line with expectations.

• Steel prices expected to rise slightly in H2, with mechanisms in place to pass on increases; other input costs stable.

• Leverage expected to fall further in H2 as working capital unwinds.

• Group tax rate expected at c.33%.

• Confident in ability to capitalize on diversified end markets and long-term structural growth drivers.