Spirax Group (LSE:SPX) delivered higher revenue and adjusted operating profit in the first half of 2026, with organic sales growth running comfortably ahead of global industrial production and management maintaining its full-year expectations.
Group revenue increased 5% year on year to £863.8 million, while adjusted operating profit rose 8% to £171.1 million. The adjusted operating margin improved to 19.8%, while statutory operating profit climbed 44%, largely reflecting restructuring charges recorded in the comparable period last year.
Growth was recorded across all three divisions. Electric Thermal Solutions led the performance with an 11% increase in sales, followed by a 7% rise at Watson-Marlow Fluid Technology Solutions. Steam Thermal Solutions revenue increased 1%, although the business generated demand growth at more than twice the rate of underlying industrial production.
Spirax highlighted improving momentum in semiconductor and biopharmaceutical markets, while operating leverage and efficiency improvements supported stronger margins within the Electric Thermal Solutions and Watson-Marlow businesses.
The group maintained its 2026 guidance for mid-single-digit organic revenue growth and further margin progress. Its Together for Growth strategy remains central to longer-term plans, with management targeting sustained organic expansion and high-margin growth.
Cash conversion declined to 54% from 61%, reflecting normal seasonal patterns and planned inventory investment. However, return on capital employed improved by 180 basis points, while leverage declined to 1.6 times EBITDA as net debt moved lower.
The results indicate that Spirax continues to invest in sales capabilities, digital tools, product development and decarbonisation technologies while maintaining a focus on capital returns and balance-sheet discipline.
The broader outlook remains mixed. Revenue and core operating profitability remain relatively resilient, but multi-year pressure on margins and returns, higher leverage and softer free-cash-flow momentum continue to weigh on the financial picture.
Technical indicators are more supportive, with the shares trading above important moving averages and the MACD positive. Valuation provides less support, however, as an elevated P/E multiple offsets some of the appeal from the company’s moderate dividend yield.
More about Spirax Group
Spirax Group plc is a UK-headquartered FTSE 100 industrial technology company specialising in thermal energy and fluid technology for mission-critical industrial processes.
Its operations are divided between Steam Thermal Solutions, Electric Thermal Solutions and Watson-Marlow Fluid Technology Solutions, serving industries including food production, healthcare, semiconductor manufacturing and biopharmaceuticals.
The group operates more than 30 manufacturing facilities across nearly 70 countries and serves more than 100,000 customers. Its technologies are designed to improve industrial efficiency, safety and sustainability, with an increasing focus on electrification and decarbonisation.
Spirax is also developing electrification technologies for boilers and process heating that can eliminate direct greenhouse gas emissions when powered using green electricity.
The company employs approximately 10,000 people worldwide, and its shares trade on the London Stock Exchange under the symbol SPX. Spirax Group is a constituent of the FTSE 100 and FTSE4Good indices.
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