Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Spirax Group’s organic revenue increased by 3% in H1 2025, outpacing global industrial production growth.

  • Adjusted operating profit rose 7% organically, with a margin improvement of 70 basis points to 19.3%.

  • Interim dividend declared at 48.9 pence, up 3% from the previous year.

Spirax Group plc (ASX:SPK) has released its unaudited results for the first half of 2025, reporting organic revenue growth and an improved adjusted operating profit margin despite currency headwinds and restructuring costs.

Revenue and Segment Performance

The Group recorded a 3% increase in organic revenue during the period, surpassing global industrial production (IP) growth of 2.5%, and outperforming IP excluding China, which stood at 1.7%. The Steam Thermal Solutions (STS) division maintained sales at the same organic level as the first half of 2024, with a 3% rise when excluding large projects in China and Korea. The Electric Thermal Solutions (ETS) division achieved 10% organic sales growth, supported by operational progress and demand in the semiconductor sector. Watson-Marlow Fluid Technology Solutions (WMFTS) delivered 2% organic sales growth, with over 10% growth in Biopharmaceutical orders, expected to contribute to higher sales in the second half of the year.

Profitability and Margins

The Group’s adjusted operating profit increased by 7% organically, with the adjusted operating margin rising by 70 basis points to 19.3%. Statutory profit margin was 13.0%, impacted by one-off restructuring costs and adverse currency movements. As anticipated, currency headwinds reduced revenue by 3% and adjusted operating profit by 7%.

Cash Flow and Dividend

Adjusted cash conversion improved to 61%, supported by capital discipline and efficiency in working capital management. The Board announced an interim dividend of 48.9 pence, representing an increase of 3% compared with the prior year.

Outlook

The Group expects Biopharmaceutical demand, continued efficiency gains, and the benefits of new decarbonisation solutions to support performance in the second half of 2025. Spirax Group’s proprietary technologies are aimed at enabling industrial customers to transition to lower-carbon operations, including electrification of boilers and other industrial process heating applications.

Company Overview

Spirax Group provides thermal energy and fluid technology solutions that enhance efficiency, safety, and sustainability in industrial processes worldwide. Its portfolio includes decarbonisation technologies designed to support the shift to net-zero emissions, with applications across multiple critical industrial sectors.