Spirax Group Shares Surge on Positive 2025 Results and Promising Outlook

Spirax Group (LON: SPX) witnessed a notable upswing, with shares gaining over 4% following the release of its full-year 2025 results.

The report highlighted a strategy delivering growth well ahead of industrial production (IP) alongside margin improvements, fueling optimism for continued organic expansion in 2026.

Reported revenue for 2025 reached £1,702.9 million, a 2% increase compared to £1,665.2 million in 2024. While statutory operating profit decreased by 13% to £265.4 million, adjusted operating profit saw a 2% rise to £339.9 million. This translates to an adjusted operating profit margin of 20.0%, reflecting a 30 basis point improvement organically.

Basic earnings per share (EPS) experienced a 15% decrease to 221.7p, however, adjusted basic EPS increased by 3% to 296.3p. The company demonstrated its commitment to shareholders by increasing the dividend per share to 170.0p, a 3% rise from the 165.0p distributed in the previous year.

The adjusted figures provide a clearer picture of Spirax Group’s underlying performance, showcasing organic revenue growth of 5%, significantly outpacing global IP growth of 2.1%. This performance underscores the effectiveness of the company’s strategic initiatives and its ability to navigate a volatile macroeconomic environment.

Adjusted cash conversion also improved to 89%, further strengthening the company’s financial position. Leverage was successfully reduced to 1.5x, and return on invested capital (ROIC) increased to 13.1%, signaling enhanced efficiency and profitability.

Nimesh Patel, Group Chief Executive Officer, stated, “At our 2024 Capital Markets Day, we set out our path to achieve mid-single-digit organic sales growth, margin progress and improving returns on capital over the medium term. We are delivering on that commitment against a continuing volatile and uncertain macroeconomic backdrop.” Patel’s statement reinforces the company’s focus on sustainable growth and value creation.