Stelrad Group (SRAD) Q4 2025 TU earnings summary

Executive summary

• Achieved adjusted operating profit growth for the year, despite a 4% year-over-year decline in volumes across core UK and European markets.

• Proactive margin management and cost reduction led to improved contribution per radiator for the eighth consecutive year.

• Maintained strong operational performance and strategic execution, supporting confidence in long-term growth.

Financial highlights

• Revenue reached approximately £280m, with a slight volume improvement in H2 versus H1.

• Adjusted operating profit grew by about 3% year-over-year to £32.5m (FY24: £31.5m), with an operating margin of 11.6% (FY24: 10.8%).

• Net debt before lease liabilities reduced to £51.2m (2024: £59.7m); leverage ratio improved to 1.16x (2024: 1.37x).

Outlook and guidance

• Margin management and strategic initiatives provide a robust platform for further progress in 2026.

• Market recovery timing remains uncertain, with RMI and new build activity subdued.

• Long-term demand underpinned by structural growth drivers and focus on higher-margin products.