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Spirax Group Predicts Growth Amidst China's Improving Demand
10 Mar
Summary
- Spirax Group forecasts mid-single-digit organic revenue growth in 2026.
- Sales in its largest steam thermal business are expected to accelerate.
- The company's adjusted profit before tax for fiscal 2025 beat expectations.
British firm Spirax Group has projected mid-single-digit organic revenue growth for 2026. This forecast is bolstered by an anticipated acceleration in sales from its largest division, Steam Thermal Solutions. The company noted that trading conditions in China are improving, a key factor for this business segment which experienced slower demand on large projects in recent quarters due to customer spending hesitations.
The Steam Thermal Solutions segment saw a 1% rise in organic sales for fiscal 2025, with sequential improvements observed throughout the year. For 2026, this division's organic sales are expected to grow in the low single digits. The rest of the world's revenue growth is projected to remain strong, exceeding industrial production levels.
Spirax reported an adjusted profit before tax of 301 million pounds for fiscal 2025, exceeding the average market expectation of 291 million pounds. The company did acknowledge potential supply chain disruptions due to the Middle East conflict, which accounts for about 1% of its revenue and is expected to impact the first half of 2026.
Despite geopolitical risks, analysts at Jefferies view Spirax as favorably positioned for earnings per share growth in the upcoming year. The firm's performance indicates resilience and a positive outlook for its core businesses.
