Spirax Shares Jump 4.15% as Revenue Growth and Margins Meet Expectations
Key Facts
Spirax Group shares rose 4.15% to 7,660 pence at 09:00 GMT on 11 November after the company said organic revenue growth and adjusted operating profit margin in the 10 months ended 31 October were in line with expectations and above their levels in the first half. Sharecast reported that the update showed an improvement in the performance trajectory during the period, with the company maintaining its financial-year outlook. The improvement in operating results came alongside continued discipline in full-year guidance. The announcement was not an upgrade to expectations; Spirax left its estimates unchanged. The company’s update covered the performance of its business divisions and borrowings, as well as its outlook.
For comparison with the first half, the company’s results for that period showed organically adjusted revenue up 5% to £863.8 million, while adjusted operating profit margin was 19.8%, compared with 19.3% in the first half of 2025. These figures provide context for the company’s observation that organic revenue growth and margin in the 10 months to the end of October were above their first-half levels. In its update issued on 13 May, Spirax said organic group revenue growth was in the mid-single-digit range and adjusted operating margin had improved organically from the same period in 2025. It also maintained its full-year guidance for mid-single-digit organic revenue growth and margin expansion, while expecting growth and margins to improve in the second half in line with the usual seasonal pattern. The November update follows that trajectory, with the company confirming that performance over the 10 months was in line with its expectations.
In Thermal Energy, the company said organic sales growth in the four months ended October was stronger than in the first half. It attributed the improvement to deliveries from a larger order book and continued order momentum, linking sales growth to the flow of backlogged work and new orders. In China, Spirax expected full-year revenue from the business to remain close to 2025 levels. It said growth in maintenance, repair and operations activity was offsetting weak demand for large projects. This reflects differing sources of demand within the Chinese market: maintenance activity alone is not enough to eliminate the impact of weaker major projects, but it supports overall revenue stability at the previous year’s levels.
Electric Thermal Solutions continued to perform strongly, supported by resilient demand for process heating and heat tracing products. Equipment heating also benefited from increased activity related to semiconductors. Spirax said growth in Electric Thermal Solutions, excluding semiconductor-related customers, remained above its medium-term target range. This indicates that the division’s strength does not depend solely on the semiconductor investment cycle, with growth outside that activity still above the target range. At Watson-Marlow, sales growth to biopharma customers accelerated, while orders continued to grow faster than sales. The company added that process industries benefited from ongoing market-share gains.
Leverage indicators improved at the end of October, with net borrowings falling to £541.6 million from £618.2 million at the end of June. The ratio of net debt to earnings before interest, taxes, depreciation and amortization fell to 1.3 times, compared with 1.6 times in June. In its November 2025 update, net borrowings stood at £596 million on 31 October, compared with £658 million on 30 June of that year, while the ratio of net debt to earnings before interest, taxes, depreciation and amortization fell to 1.6 times from 1.8 times. The year-on-year comparison puts end-October 2026 borrowings and leverage below end-October 2025 levels, alongside a decline since June 2026. The company kept its 2026 financial-year guidance for mid-single-digit organic revenue growth, an adjusted operating profit margin above the 20% recorded in 2025, and cash conversion of about 90%.
The November 2025 update also said organic sales growth and adjusted operating profit margin in the 10 months ended 31 October were above their first-half levels, while the company maintained its full-year guidance at the time. That comparison provides context for the seasonal performance trajectory outlined in the current update, without changing the annual guidance now in place. Spirax’s investor page lists 9 March 2027 as the date for its full-year results. The annual results will be the next milestone at which the company reports the financial year’s outcome and full performance details for its divisions. Until then, the current guidance remains mid-single-digit organic revenue growth, an adjusted operating margin above the 2025 level, and cash conversion of about 90%.