Stelrad Group (SRAD) H1 2026 earnings summary

Executive summary

• Maintained European market leadership in steel panel radiators with a 24% share and a 3.9 ppt lead over the nearest competitor, supported by strong customer service and operational excellence.

• Delivered adjusted operating profit growth of 4.9% year-over-year, despite a 9.1% revenue decline driven by subdued demand, strategic exits from low-margin contracts, and a 14.6% drop in sales volumes.

• Strategic focus on premiumisation, decarbonisation, and targeted market share growth in underrepresented European markets underpinned performance.

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

Financial highlights

• Revenue declined 9.1% year-over-year to £124.0m, mainly due to lower volumes 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%; statutory operating profit was £15.7m (up 307.6%).

• 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 other input costs stable; leverage to fall further as working capital unwinds.

• Group tax rate expected at c.33%; contribution per radiator expected to normalize toward the £21 medium-term target as volumes recover.