Spirax Group (SPX) AI Stock Analysis

• Market Cap: £4.81B
• Dividend Yield: 2.46%
• Average Volume (3M): 169.83K
• Price to Earnings (P/E): 30.8
• Beta (1Y): 1.42
• Revenue Growth: 0.10%
• EPS Growth: -15.33%
• Country: UK
• Employees: 9,960
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.58
• Shares Outstanding: 73,826,050
• 10 Day Avg. Volume: 195,337
• 30 Day Avg. Volume: 169,833
• PEG Ratio: -2.15
• Price to Book (P/B): 4.11
• Price to Sales (P/S): 2.95
• P/FCF Ratio: 23.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £8,309.29
• Price Target Upside: 27.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 3.19
• Revenue Forecast (FY): £1.76B

• Rating: 61 Neutral
• Price Target: 7,512.00 p ▲(15.13% Upside)
• Action: Downgraded Date: 03/12/26
• Date: Action: Downgraded 03/12/26

The score is led by solid but moderating fundamentals (stable revenue, still-healthy operating profitability, but weaker margins/returns and higher leverage) and a supportive earnings outlook with restructuring savings. Offsetting this are weak technical momentum signals and a premium valuation that leaves less margin for error.

Positive Factors

Recurring aftermarket and diversified model

Spirax's mix of engineered products, packaged systems and consumable-driven sales (notably Watson-Marlow tubing/consumables) creates a recurring revenue stream tied to installed bases. This improves revenue visibility, supports margins, and cushions cyclical new-equipment volatility over the medium term.

Material restructuring savings

GBP 35m of recurring cost savings materially lowers the structural cost base, improving operating leverage and cash conversion. Sustained savings strengthen margins, free up cash for reinvestment in sales, R&D and digital systems, and enhance resilience versus macro shocks over 2–6 months and beyond.

Solid core EBITDA margins

Despite pressure on net and EBIT margins, robust EBITDA margins indicate the group's core engineered-product economics remain healthy. This underlying profitability supports steady cash generation, funds capex and dividends, and provides a cushion while management executes margin-restoration plans.

Negative Factors

Rising financial leverage

Higher debt-to-equity reduces balance-sheet flexibility and raises interest and refinancing risk. With leverage now materially above 2021 levels, Spirax has less capacity for opportunistic investment or to absorb earnings shocks, making medium‑term execution and deleveraging priorities.

Sustained margin compression

A multi-year decline in margins signals structural pressures—cost inflation, mix shifts or weaker pricing power—that erode returns. Lower margins reduce cash flow buffers, constrain ROE improvement, and make it harder to deleverage or fund strategic initiatives without restoring pricing or efficiency gains.

Cooling cash conversion and working-capital drag

Declining free cash flow and OCF below net income point to tighter cash conversion, likely from working-capital build or timing. This reduces internally available funding for capex/dividends and increases reliance on debt, worsening leverage dynamics and constraining strategic flexibility over the medium term.

Spirax Group Business Overview & Revenue Model

Company Description

Spirax-Sarco Engineering plc provides engineered solutions for the users of industrial and commercial steam systems, electrical heating and temperature management systems, and pumps and fluid path technologies. It offers industrial and commercial steam systems, including condensate management, controls, and thermal energy management products and solutions for heating and curing, cleaning and sterilizing, hot water generation, space heating, and humidification; electrical process heating and temperature management solutions, such as industrial heaters and systems, heat tracing, and various component technologies for industrial processes, heaters, and systems; and peristaltic and niche pumps and associated fluid path technologies, including pumps, tubing, and specialty filling systems and products for single-use applications. The company serves food, beverage, pharmaceutical and biotechnology, oil, gas, chemical, healthcare, power generation, buildings, mining and precious metal processing, water and wastewater, and pulp and paper, as well as original equipment manufacturers. The company sells its products directly, as well as through distributors. It operates in Europe, the Middle East, and Africa; the Asia Pacific; and the Americas. Spirax-Sarco Engineering plc was founded in 1888 and is headquartered in Cheltenham, the United Kingdom.

How the Company Makes Money

Spirax Group makes money primarily by selling engineered products, packaged systems, and related services through its three operating businesses. (1) Spirax Sarco generates revenue from steam system components (e.g., steam traps, valves, regulators), steam system packages (e.g., heat transfer and control assemblies), and energy-efficiency/steam system optimization solutions; earnings are supported by aftermarket demand for replacement parts, maintenance, and upgrades tied to customers’ ongoing steam operations and compliance/energy-saving initiatives. (2) Chromalox earns revenue from electric heating products and systems (industrial heaters, heat tracing, control panels, and temperature-management solutions), including engineered-to-order projects for process heating and safety-critical applications; revenue is driven by both new equipment/projects and ongoing needs for controls, replacement, and system expansions. (3) Watson-Marlow generates revenue from peristaltic pumps and pumping systems, as well as recurring sales of consumables such as tubing, hoses, and fluid-path components that require periodic replacement; this creates a meaningful repeat-purchase aftermarket stream alongside initial equipment sales. Across the group, revenue is delivered through a mix of direct sales and distribution channels, with value-added engineering/application support and service activity that helps win specifications, supports installed base penetration, and contributes to repeat business. Specific details on significant partnerships are null.

Spirax Group Financial Statement Overview

Summary

Revenue has been broadly stable with modest recent growth, and EBITDA margins remain solid, but multi-year profitability has weakened (notably lower net and EBIT margins). Leverage has risen meaningfully versus 2021, reducing flexibility, while free cash flow remains positive but has cooled recently with some working-capital drag implied by weaker operating cash flow coverage.

Income Statement

Revenue has been broadly stable with modest growth recently (2025 up ~2.6% after a slight decline in 2024), but profitability has softened versus earlier years: net margin fell from ~17.4% (2021) to ~9.6% (2025) and EBIT margin has drifted down from ~24.1% (2021) to ~17.9% (2025). EBITDA margin remains solid (~23–29% range), suggesting the core earnings engine is still healthy, but the overall margin trajectory points to rising costs and/or weaker pricing power.

Balance Sheet

Leverage has increased meaningfully since 2021: debt-to-equity moved from ~0.46 (2021) to ~0.84 (2025), which reduces balance-sheet flexibility. Return on equity remains positive and decent but is trending lower (from ~23% in 2021 to ~13% in 2025), consistent with the margin compression seen on the income statement. Asset base and equity look stable, but the higher debt load is a key risk if earnings weaken further.

Cash Flow

Cash generation remains positive, with free cash flow of ~£212m in 2025, but momentum has cooled: free cash flow fell ~14.7% in 2025 after growth in 2024 and a strong rebound in 2023. Cash conversion is generally reasonable (free cash flow running at ~65–82% of net income over 2023–2025), though operating cash flow has been less than net income in recent years (coverage ~0.46–0.66 in 2023–2025), which can signal working-capital drag and makes cash durability a watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.70B	1.67B	1.68B	1.61B	1.34B
Gross Profit	305.30M	333.90M	1.28B	576.70M	492.30M
EBITDA	407.50M	378.30M	390.60M	402.10M	392.00M
Net Income	163.40M	191.20M	183.60M	224.70M	234.60M
Balance Sheet
Total Assets	2.66B	2.65B	2.71B	2.78B	1.86B
Cash, Cash Equivalents and Short-Term Investments	369.00M	334.20M	359.70M	328.90M	274.60M
Total Debt	1.02B	1.03B	1.12B	1.08B	465.20M
Total Liabilities	1.44B	1.44B	1.55B	1.62B	853.20M
Stockholders Equity	1.22B	1.21B	1.16B	1.17B	1.01B
Cash Flow
Free Cash Flow	211.80M	238.50M	193.20M	113.70M	204.20M
Operating Cash Flow	259.60M	312.80M	298.60M	231.20M	268.30M
Investing Cash Flow	-75.30M	-65.30M	-95.70M	-576.60M	-62.10M
Financing Cash Flow	-178.00M	-215.00M	-219.20M	362.20M	-204.80M

Spirax Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6525.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SPX, the sentiment is Negative. The current price of 6525 is below the 20-day moving average (MA) of 7403.50, below the 50-day MA of 7378.10, and below the 200-day MA of 6829.30, indicating a bearish trend. The MACD of -202.51 indicates Positive momentum. The RSI at 36.24 is Neutral, neither overbought nor oversold. The STOCH value of 16.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SPX.

Spirax Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMI	74 Outperform	£6.39B	20.02	24.91%	1.29%	-0.32%	-3.96%
ROR	67 Neutral	£2.49B	23.57	20.10%	2.04%	1.93%	-15.07%
SMIN	66 Neutral	£7.28B	15.92	13.46%	1.93%	-6.93%	18.57%
WEIR	64 Neutral	£7.06B	29.74	13.42%	1.26%	-1.97%	40.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BOY	62 Neutral	£1.08B	22.48	8.58%	3.30%	-6.95%	-52.08%
SPX	61 Neutral	£4.81B	30.76	13.88%	2.46%	0.10%	-15.33%

Spirax Group Corporate Events

Spirax Group Confirms Total Voting Rights at 73.8 Million Shares

Spirax Group has confirmed that as of 11 March 2026 its issued share capital consists of 73,826,048 ordinary shares, with no shares held in treasury. This figure will serve as the denominator for shareholders when calculating whether they must disclose holdings or changes in their interests under the FCA’s Disclosure Guidance and Transparency Rules.

The update has implications for institutional and other significant investors who monitor and report crossing of regulatory thresholds in the company’s stock. By clarifying the total voting rights, Spirax Group reinforces transparency in its capital structure, supporting orderly market disclosure and regulatory compliance for stakeholders trading its FTSE 100-listed shares.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £86.50 price target. To see the full list of analyst forecasts on Spirax Group stock, see the GB:SPX Stock Forecast page.

Spirax Group Executives Increase Shareholdings Under Remuneration Plan

Spirax Group plc has disclosed that Group Chief Executive Officer Nimesh Patel and Group Chief Financial Officer Louisa Burdett have purchased ordinary shares in the company, in line with arrangements set out in its 2024 Annual Remuneration Report. Patel acquired 1,423 shares and Burdett 752 shares at £73.70 each on 10 March 2026, largely to meet bonus deferral requirements and, in Patel’s case, following a salary increase.

The transactions, executed on the London Stock Exchange, underscore the alignment of senior management’s interests with those of shareholders through increased equity exposure. These purchases formalize part of the executives’ variable pay structure, signaling continued adherence to the company’s remuneration policy and reinforcing governance transparency for investors monitoring insider dealing activity.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £8715.00 price target. To see the full list of analyst forecasts on Spirax Group stock, see the GB:SPX Stock Forecast page.

Spirax Group Outpaces Industrial Production as Restructuring Weighs on 2025 Profit

Spirax Group reported 5% organic revenue growth to £1.70bn in 2025, comfortably outpacing global industrial production, with all three divisions delivering organic sales gains and improved adjusted margins that lifted the Group’s organic adjusted operating margin to 20%. Reported statutory profit fell, however, as one‑off restructuring charges weighed on operating profit and margins, even as the company improved cash conversion, cut leverage to 1.5 times EBITDA, raised returns on capital and increased its dividend.

Steam Thermal Solutions grew modestly on an organic basis but faced pressure on statutory margins, while Electric Thermal Solutions and Watson‑Marlow posted double‑digit and mid‑single‑digit organic sales growth respectively, aided by recovering semiconductor and biopharma demand. Management said a completed efficiency and simplification drive is now delivering £40m of annualised savings to support further investment, underpinning expectations of continued organic growth and margin progress in 2026 despite a volatile macroeconomic backdrop.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £10500.00 price target. To see the full list of analyst forecasts on Spirax Group stock, see the GB:SPX Stock Forecast page.

Spirax Group executives receive shares under incentive plan

Spirax Group has disclosed a series of small share transactions by senior executives under its employee Share Incentive Plan, in line with UK Market Abuse Regulation. Group CEO Nimesh Patel, Group HR Director James Devine, Group Sustainability Director Sarah Peers, ETS Managing Director Andrew Mines and WM Managing Director Stuart Roby each acquired two partnership shares and received two matching shares at an effective aggregated price of £37.95 per share.

The transactions, executed on 5 March on the London Stock Exchange, marginally increase management’s equity exposure but do not materially alter the company’s share capital. They underline ongoing use of all-employee share plans to strengthen alignment between leadership and investors, and demonstrate continued regulatory transparency around dealings by persons discharging managerial responsibilities.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £10500.00 price target. To see the full list of analyst forecasts on Spirax Group stock, see the GB:SPX Stock Forecast page.

Spirax Group Executives Take New Non-Executive Roles at SEGRO and Victrex

Spirax Group has expanded the external board responsibilities of two of its senior leaders, while maintaining their existing positions within the company. Chief Financial Officer Louisa Burdett will join SEGRO as a non-executive director from 1 May 2026, and non-executive director and remuneration committee chair Maria Antoniou will take a non-executive role at Victrex from 1 September 2026.

The appointments underscore Spirax Group’s connections across the UK’s blue-chip industrial and property sectors and may broaden the board’s strategic insights as the company pursues growth in thermal energy, electrification and decarbonisation solutions. The decision to retain both executives in their Spirax roles suggests continuity in governance and financial leadership, while potentially enhancing the group’s external perspective and industry influence.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £80.20 price target. To see the full list of analyst forecasts on Spirax Group stock, see the GB:SPX Stock Forecast page.

Spirax Group Executives Acquire Shares Under Employee Incentive Plan

Spirax Group plc has disclosed a series of routine share transactions by senior executives under its employee Share Incentive Plan, in line with UK Market Abuse Regulation requirements. On 5 February 2026, Group CEO Nimesh Patel, Group HR Director James Devine, Group Sustainability Director Sarah Peers and managing directors Andrew Mines (ETS) and Stuart Roby (WM) each acquired two partnership shares and were granted two matching shares in the company at an effective aggregated price of £36.84 per share, based on a market price of £73.7489 for the purchased shares. The filings underscore ongoing use of share-based compensation to reinforce management’s equity stake in the business and maintain regulatory transparency for investors.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £80.20 price target. To see the full list of analyst forecasts on Spirax Group stock, see the GB:SPX Stock Forecast page.

Spirax Group CFO Louisa Burdett Steps Down from RS Group Board

Spirax Group has announced that its Chief Financial Officer, Louisa Burdett, has stepped down from the Board of Directors of RS Group plc, effective 31 January 2026, while continuing in her executive role at Spirax Group. The move comes as Spirax continues to position itself as a key player in enabling industrial decarbonisation through proprietary electrification and thermal solutions, reinforcing its strategic focus on net zero-aligned technologies and maintaining governance structures that support its long-term growth and stakeholder value proposition.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £80.20 price target. To see the full list of analyst forecasts on Spirax Group stock, see the GB:SPX Stock Forecast page.

Spirax Group Executives Receive Shares Under Employee Incentive Plan

Spirax Group plc has disclosed a series of routine transactions by senior executives under its employee Share Incentive Plan, in line with UK Market Abuse Regulation requirements. Group Chief Executive Officer Nimesh Patel, Group HR Director James Devine, Group Sustainability Director Sarah Peers, ETS Managing Director Andrew Mines and WM Managing Director Stuart Roby each acquired two partnership shares and received two matching shares in the company on 5 January 2026, at an effective aggregated price of £34.30 per share, with trades conducted on the London Stock Exchange. The relatively small volumes indicate standard participation in a broad-based share plan rather than any material change in ownership, underscoring the company’s continued use of equity-based compensation to reinforce alignment between leadership and shareholders.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £7645.00 price target. To see the full list of analyst forecasts on Spirax Group stock, see the GB:SPX Stock Forecast page.

Spirax Group Sets 19 December Admission for 200,000-Share Block Listing

Spirax Group PLC has corrected a previous announcement to confirm that 200,000 new ordinary shares will be admitted to trading on the London Stock Exchange’s Main Market on 19 December 2025 under a block listing. The shares, which will be issued from time to time to the company’s Employee Benefit Trust for use in its Performance Share Plan and Employee Share Ownership Plan, will rank pari passu with existing stock, supporting ongoing employee incentive schemes without immediately altering the group’s operational strategy or market positioning.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £7645.00 price target. To see the full list of analyst forecasts on Spirax Group stock, see the GB:SPX Stock Forecast page.

Spirax Group Seeks Block Listing of 200,000 Shares for Employee Incentive Plans

Spirax Group PLC has applied to the London Stock Exchange for a block listing of 200,000 new ordinary shares to be admitted to trading on the Main Market, with admission expected to become effective on 18 December 2025. The shares will be issued periodically to the company’s Employee Benefit Trust to satisfy awards under the Spirax Group Performance Share Plan and Employee Share Ownership Plan, and will rank pari passu with existing ordinary shares, underscoring the Group’s ongoing use of equity-based incentives to align employees with shareholder interests and support long-term value creation.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £7645.00 price target. To see the full list of analyst forecasts on Spirax Group stock, see the GB:SPX Stock Forecast page.