Decrease in First-Half Revenue for Spirax Group Reported
In the first half of 2025, British provider of steam management systems, Spirax Group PLC (SPXSF), reported a slight decline in statutory revenue, amounting to GBP 822.2 million, compared to GBP 827 million in 2024. However, on an organic basis, the company saw a growth of 3%, outperforming global industrial production growth [1][2][3].
The decline in statutory revenue was primarily due to adverse exchange rate impacts and weakness in large project orders, particularly in China and Korea [2][3][4]. The company faced a challenging macroeconomic environment and uncertainty around tariffs that dampened business confidence and demand for large projects, contributing to the reported revenue decline [3].
Despite the revenue decline, Spirax Group PLC recorded a pre-tax income of GBP 87.9 million, a decrease from the GBP 124.8 million reported for the same period in 2024 [1]. Excluding items, pre-tax earnings improved to GBP 139.9 million from GBP 137.9 million in 2024 [1]. The adjusted operating profit increased 7% on an organic basis, reflecting operational improvements and strong demand in Electric Thermal Solutions and Biopharmaceutical orders [1][2][3]. The adjusted operating profit margin remained stable around 19.3%, only slightly below the prior year [1][2].
However, statutory operating profit and margin declined more sharply due to one-off restructuring costs and adverse currency impacts [2][5]. Most of the restructuring costs will be taken as a restructuring charge in 2025 [1]. The company expects around GBP 35 million of cash costs and GBP 5 million of non-cash costs to deliver its restructuring program [1].
Looking ahead, Spirax expects organic sales growth to accelerate in the second half of 2025, driven by strong demand in higher margin Biopharm and Semiconductor markets, and the phasing in of benefits from restructuring programs [3]. The company reiterated its full-year guidance, expecting mid-single digit organic growth in adjusted operating profit and adjusted operating profit margin ahead of the currency-adjusted 19.4% level in 2024 [1][3][4].
The Board of Spirax Group PLC will pay an interim dividend of 48.9 pence per share on November 14, to shareholders on the register as of October 17 [2][4]. The cash impact of the restructuring program is expected in 2025 and 2026 [1].
In summary, Spirax Group PLC's first-half revenue saw a slight decline, while adjusted operating profit increased. The company anticipates organic growth in Group revenues consistent with that achieved in 2024 and well ahead of IP. For the second half of 2025, Spirax expects organic sales growth to accelerate, driven by strong demand in higher margin Biopharm and Semiconductor markets, and the phasing in of benefits from restructuring programs.
| Aspect | First Half 2025 | Expectations for Second Half 2025 | |------------------|--------------------------------------------------------------------|------------------------------------------------------------| | Revenue | Statutory revenue down 0.6% due to currency and large project weakness; organic revenue up 3% | Anticipate accelerated organic sales growth | | Profit | Statutory operating profit down 27-30% due to restructuring and currency; adjusted operating profit up 7% organically | Expect organic operating profit growth mid-single digits | | Margin | Adjusted operating margin stable at ~19.3%; statutory margin down | Margin expected ahead of 2024 currency-adjusted margin level | | Business outlook | Challenging macro environment, tariff uncertainty | Positive outlook with stronger H2 growth and margin gains |
This reflects Spirax’s resilient core business and strategic focus on higher-growth, higher-margin segments despite broader macroeconomic challenges [1][2][3][4][5].
[1]: [Source 1] [2]: [Source 2] [3]: [Source 3] [4]: [Source 4] [5]: [Source 5]
The decline in statutory revenue, due to adverse exchange rates and weak large project orders, negatively impacted the finance sector, affecting the overall business performance of Spirax Group PLC. Despite this, the company recorded a pre-tax income and an adjusted operating profit increase, showcasing operational improvements within the industry, particularly in Electric Thermal Solutions and Biopharmaceutical orders.
