Highlights

  • Stelrad reported adjusted operating profit growth for FY25 despite lower overall market volumes.
  • FY25 revenue was approximately GBP 280 million, with improved second-half volumes versus H1.
  • Adjusted operating profit is expected to rise around 3% year-on-year to about GBP 32.5 million
  • Net debt reduced to GBP 51.2 million, with leverage improving to 1.16x during the year.

Stelrad Group PLC (LSE:SRAD) released a full-year trading update on 30 January 2026 for the twelve months ended 31 December 2025. The Group reported another year of adjusted operating profit growth, despite continued volume pressure across its core UK and European markets, as previously highlighted in its November 2025 trading update.

Group revenue for the year was approximately GBP 280 million. While overall volumes declined by 4% year-on-year, Stelrad noted a modest improvement in volumes during the second half compared with the first half, alongside encouraging performance in several key markets.

Margin Management and Profitability

The Group continued to implement proactive margin management and cost reduction measures across its manufacturing operations. These initiatives contributed to a further increase in contribution per radiator, marking the eighth consecutive year of improvement in this key performance indicator.

Supported by an enhanced product mix and continued fixed cost control, Stelrad expects adjusted operating profit to increase by around 3% year-on-year to approximately GBP 32.5 million, compared with GBP 31.5 million in FY24. The adjusted operating profit margin is expected to rise to 11.6%, up from 10.8% in the prior year, in line with market expectations.

Balance Sheet and Financing

Through focused cash management, net debt before lease liabilities declined to GBP 51.2 million at year-end, compared with GBP 59.7 million in 2024. The Group’s leverage ratio also improved to 1.16x from 1.37x a year earlier.

In December 2025, Stelrad successfully renewed its GBP 100 million loan facility, a move expected to reduce future borrowing costs.

Operational Restructuring

During the year, the Group continued to assess opportunities to enhance operational efficiency and competitive positioning. Following the earlier restructuring of its Turkish operations, Stelrad restructured its Danish business prior to year-end. This action is expected to support future operational margins and resulted in an exceptional expense of approximately GBP 2.7 million in the second half of 2025.

Management Outlook

During 2025, Stelrad continued to strengthen its operational performance, supported by its flexible and low-cost manufacturing footprint, favourable customer service capabilities, and high levels of product availability. These core strengths enabled the Group to deliver further growth in operating profits and margins, despite challenging market conditions.

The Group acknowledged that ongoing market headwinds remain a constraint; however, performance during the year demonstrated Stelrad’s ability to execute its strategy consistently, regardless of the broader market environment. Management also reiterated confidence that the continued delivery of the Group’s strategy positions Stelrad well for sustained growth and for benefiting from an eventual market recovery.

Stelrad said that while uncertainty remains around the timing of a broader market recovery, margin management initiatives undertaken in 2025 and progress against strategic growth drivers support further progress in 2026. The Group expects to report its full-year 2025 results on 13 March 2026.