Spirax Group (SPX) H1 2026 earnings summary

Executive summary

• Organic sales grew 5% and profit 6% year-over-year, outpacing global industrial production (IP) growth of 1.5%-1.8%.

• Operating margin improved to 19.8%, and adjusted EPS rose 9% to 150.0p; interim dividend increased by 3% to 50.4p per share.

• Strong order books and momentum across all three business segments support confidence in meeting full-year and medium-term guidance.

• Continued investment in sales, digital connectivity, operational improvements, and sustainability initiatives underpin future growth.

• Statutory operating profit surged 44% due to one-off restructuring costs in the prior year.

Financial highlights

• Revenue reached £863.8m, up 5% year-over-year; adjusted operating profit rose 8% to £171.1m, with margin up 50bps to 19.8%.

• Adjusted EPS up 9% to 150.0p; statutory EPS up 56% to 132.2p.

• Cash conversion at 54% in H1, expected to reach ~89%-90% for the full year.

• Net debt at £618.2m, with net debt-to-EBITDA at 1.6x, expected to return to target range by year-end.

• ROCE improved by 180bps to 35.2%.

Outlook and guidance

• On track to deliver full-year and medium-term guidance, with higher sales volumes and improved operating leverage expected in H2.

• Medium-term organic sales growth targeted at mid-single digits, with margin guidance of 22%-23%.

• Segment outlooks: STS expects margin recovery in H2; ETS and WMFTS anticipate high single-digit sales growth and margin improvement.

• FX impact on revenue negligible; 2% headwind on profit expected in H2.

• Full-year cash conversion expected to align with 2025 levels (89%).