Stelrad Lifts Profit and Margins Despite Weak Radiator Markets

Stelrad Group Plc ( (GB:SRAD) ) has shared an announcement.

Stelrad Group reported another year of adjusted operating profit growth for 2025 despite subdued demand in its core UK and European radiator markets, with revenue of around £280m and a 4% decline in overall volumes offset by improved product mix and tight cost control. Contribution per radiator rose for the eighth consecutive year, helping lift adjusted operating profit by about 3% to £32.5m and expanding the margin to 11.6%, while strong cash management reduced net debt to £51.2m and lowered leverage to 1.16x, supported by the renewal of a £100m loan facility on better terms. The company further restructured its operations, including its Danish business following earlier changes in Turkey, incurring an exceptional charge of about £2.7m but aiming to enhance future margins. Management acknowledged ongoing uncertainty around a broader market recovery but said 2025’s margin initiatives and strategic execution provide a robust platform for progress in 2026 and leave Stelrad well positioned to benefit from eventual improvement in construction and refurbishment activity.

The most recent analyst rating on (GB:SRAD) stock is a Hold with a £145.00 price target. To see the full list of analyst forecasts on Stelrad Group Plc stock, see the GB:SRAD Stock Forecast page.

Spark’s Take on GB:SRAD Stock

According to Spark, TipRanks’ AI Analyst, GB:SRAD is a Neutral.

Stelrad Group Plc’s overall score reflects strong financial performance and positive corporate events, offset by bearish technical indicators and a high P/E ratio. The company’s effective cost management and cash flow generation are significant strengths, while current market momentum and valuation present challenges.

To see Spark’s full report on GB:SRAD stock, click here.

More about Stelrad Group Plc

Stelrad Group plc is a leading specialist manufacturer and distributor of steel panel and designer radiators, operating primarily in the UK, Europe and Turkey. The group focuses on higher-margin, higher added-value heating products and leverages a flexible, low-cost manufacturing footprint, strong customer service and broad product availability to maintain its competitive position in residential repair, maintenance and improvement and new-build markets.

Average Trading Volume: 40,571

Technical Sentiment Signal: Sell

Current Market Cap: £173.2M

For a thorough assessment of SRAD stock, go to TipRanks’ Stock Analysis page.