Spirax Group: Strong FY25 Outperformance and Restructuring Upside Support Buy Rating and EPS Growth into FY27

Andrew Douglas, an analyst from Jefferies, maintained the Buy rating on Spirax Group. The associated price target is p8,715.00.

Andrew Douglas has given his Buy rating due to a combination of factors, starting with Spirax Group’s stronger‑than‑expected FY25 performance across revenue, margins, and earnings. Watson‑Marlow delivered particularly robust profitability in the second half, ETS posted solid organic growth, and year‑end net debt came in materially better than Jefferies’ projections, underscoring effective execution and financial discipline.

Looking ahead, he sees the company well placed for further EPS expansion in FY26 despite broader geopolitical headwinds facing U.K. industrials. Key operational inflection points are progressing positively, with additional improvements anticipated into FY27, while the ongoing restructuring program is expected to yield higher benefits at unchanged cost, allowing savings to be reinvested to support growth, all of which underpins his constructive stance on the shares.