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Spirax Group
(LSE:SPX)
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Rating:60Neutral
Price Target:
6,723.00 p
▼(-12.23% Downside)
Action:Reiterated
Date:04/09/26
The score is driven primarily by financial performance: stable revenue and positive cash generation are tempered by multi-year margin/return compression and increased leverage. Technicals add caution due to a negative MACD and mixed moving-average setup, while valuation is constrained by a relatively high P/E despite a moderate dividend yield.
Positive Factors
Recurring aftermarket and installed-base revenue
A material recurring revenue stream from spares, consumables and service tied to a large installed base supports durable, predictable cash flows and higher lifetime customer value. This reduces cyclicality versus pure project sales and underpins aftermarket margin resilience over months.
Negative Factors
Multi-year margin compression
Marked margin deterioration over several years suggests rising cost pressure, weaker pricing power or structural mix shifts. Unless management arrests this trend, lower margins will persistently reduce return on capital and limit the company's ability to invest or rebuild reserves.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket and installed-base revenue
A material recurring revenue stream from spares, consumables and service tied to a large installed base supports durable, predictable cash flows and higher lifetime customer value. This reduces cyclicality versus pure project sales and underpins aftermarket margin resilience over months.
Read all positive factors
Spirax Group (SPX) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.72B
Dividend Yield2.46%
Average Volume (3M)169.83K
Price to Earnings (P/E)29.7
Beta (1Y)1.40
Revenue Growth2.26%
EPS Growth-14.63%
CountryUK
Employees9,960
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.21
Shares Outstanding73,826,050
10 Day Avg. Volume195,337
30 Day Avg. Volume169,833
Financial Highlights & Ratios
PEG Ratio-2.15
Price to Book (P/B)4.11
Price to Sales (P/S)2.95
P/FCF Ratio23.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£9,023.00Price Target Upside17.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)3.2
Revenue Forecast (FY)£1.77B
Spirax Group Business Overview & Revenue Model
Company Description
Spirax-Sarco Engineering plc, founded in 1888 and headquartered in Cheltenham, UK, delivers sophisticated engineered solutions across several core technological domains. The company specializes in comprehensive industrial and commercial steam syst...
How the Company Makes Money
Spirax Group makes money primarily by selling engineered industrial products and systems, and by generating recurring aftermarket revenue from spares, consumables, service, and maintenance tied to its installed base.
1) Product and systems sales ...
Spirax Group Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted solid organic growth and profitability, driven by strong performance in biopharm and semicon, effective restructuring, and strategic sales initiatives. However, challenges in China and Korea, along with legacy order impacts and currency headwinds, posed significant hurdles. Despite these challenges, the group's strategic initiatives and restructuring efforts have positioned it well for future growth.Positive Updates
Organic Sales and Operating Profit Growth
The group achieved an organic sales growth of 3% and an organic operating profit increase of 7%, with a group margin of 19.3%, 70 basis points higher organically.
Negative Updates
Challenges in China and Korea
Sales in China and Korea were down 9% due to weakness in large project demand, influenced by macroeconomic challenges and political instability.
Read all updates
Q2-2025 Updates
Positive
Negative
Organic Sales and Operating Profit Growth
The group achieved an organic sales growth of 3% and an organic operating profit increase of 7%, with a group margin of 19.3%, 70 basis points higher organically.
Read all positive updates
Company Guidance
During the call, Spirax Group provided guidance for the second half of 2025, emphasizing organic growth and operational improvements amid a challenging macroeconomic environment. The group achieved a 3% organic sales growth, outpacing industrial production (IP) growth, with adjusted operating profit increasing by 7%, leading to a group margin of 19.3%. The first half saw strong demand in the biopharm and semicon sectors, with ETS achieving 10% organic growth and Watson-Marlow 2%. Cash conversion improved to 61%, and the restructuring program is on track to deliver GBP 35 million in annual savings. Despite headwinds in China and Korea, Spirax remains confident in its outlook, maintaining guidance for mid-single-digit organic growth in adjusted operating profit for the full year. The company plans to continue investments in commercial sales, new product development, and digital systems, with CapEx guidance set at 4% to 5% of sales.Spirax Group Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
60
Neutral
Cash Flow
64
Positive
| 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 | 539.70M | 333.90M | 1.28B | 576.70M | 492.30M |
| EBITDA | 399.40M | 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
Negative
7660.00
Price Trends
6927.40
Negative
7030.10
Negative
6959.95
Negative
Market Momentum
-122.75
Positive
41.35
Neutral
23.05
Neutral
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 7660 is above the 20-day moving average (MA) of 6794.25, above the 50-day MA of 6927.40, and above the 200-day MA of 6959.95, indicating a bearish trend. The MACD of -122.75 indicates Positive momentum. The RSI at 41.35 is Neutral, neither overbought nor oversold. The STOCH value of 23.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SPX.
Spirax Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £7.41B | 32.57 | 13.71% | 1.93% | -31.27% | -13.26% | |
71 Outperform | £6.67B | 27.63 | 24.91% | 1.29% | 4.25% | 29.89% | |
67 Neutral | £2.40B | 21.38 | 20.10% | 2.04% | 3.03% | 13.76% | |
64 Neutral | £6.09B | 24.96 | 13.42% | 1.26% | 2.35% | -20.96% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £1.09B | 20.28 | 8.58% | 3.30% | -3.96% | 192.10% | |
60 Neutral | £4.72B | 29.66 | 13.86% | 2.46% | 2.26% | -14.63% |
* Industrials Sector Average
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Spirax Group Corporate Events
Regulatory Filings and Compliance
Spirax Group Reports Routine Executive Share Incentive Transactions
Neutral
Jul 8, 2026
Spirax Group plc, listed in London, maintains a corporate structure headed by Group Chief Executive Nimesh Patel, supported by a Group HR Director and divisional managing directors. Its equity-based compensation framework emphasises share particip...
Regulatory Filings and Compliance
Spirax Group updates investors on latest block listing share utilisation
Neutral
Jun 18, 2026
Spirax Group reported its latest six-monthly block listing return for ordinary shares, covering the period from 19 December 2025 to 18 June 2026, in line with UK listing rules. During the period, the company allotted 50,000 shares under its existi...
Executive/Board ChangesRegulatory Filings and Compliance
Spirax Group Discloses Routine Executive Share Incentive Plan Awards
Positive
Jun 8, 2026
Spirax Group plc has reported routine share transactions by several senior executives under its employee Share Incentive Plan, in line with UK Market Abuse Regulation disclosure requirements. Group CEO Nimesh Patel acquired three partnership share...
Business Operations and StrategyExecutive/Board Changes
Spirax Group NED Constance Baroudel to Become CEO of Spectris Limited While Remaining on Board
Positive
May 29, 2026
Spirax Group plc has announced that non-executive director Constance Baroudel will leave her role at Halma plc in August 2026 to become chief executive officer of Spectris Limited from 1 September 2026, while retaining her non-executive position o...
DividendsRegulatory Filings and Compliance
Spirax Group Executives Receive Shares Through Dividend Reinvestment Plan
Neutral
May 27, 2026
Spirax Group has disclosed routine share transactions under its dividend reinvestment plan following payment of the final dividend in May 2026. The disclosures, made under UK Market Abuse Regulation, relate to awards of ordinary shares to senior e...
DividendsRegulatory Filings and Compliance
Spirax Group Reports DRIP Share Awards to Senior Executives
Neutral
May 26, 2026
Spirax Group plc has disclosed a series of routine dividend reinvestment plan transactions involving senior executives following the payment of its final dividend in May 2026. Group CEO Nimesh Patel, Group HR Director Jim Devine and ETS Managing D...
Business Operations and StrategyExecutive/Board Changes
Spirax Group Chair Takes Additional Role at Coats Group
Positive
May 14, 2026
Spirax Group has detailed that its chair, Tim Cobbold, will join the board of Coats Group as a non-executive director and chair designate from 1 July 2026, becoming chair of Coats on 1 August while retaining his current role at Spirax. The move un...
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Spirax Grants Additional Performance Shares to CEO and CFO After Policy Approval
Neutral
May 14, 2026
Spirax Group has confirmed additional performance share awards to senior executives under its 2023 Performance Share Plan, following shareholder approval of an updated remuneration policy and share award rules at the 2026 AGM. Group CEO Nimesh Pat...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Spirax Group Wins Strong Shareholder Backing at AGM as Board Change Confirmed
Positive
May 13, 2026
Spirax Group reported that all resolutions put to shareholders at its annual general meeting were approved by poll, with participation representing more than 83% of the total voting capital. The strong backing covered both ordinary and special res...
Business Operations and StrategyDividendsFinancial Disclosures
Spirax Group Delivers Solid Early‑2026 Growth and Reaffirms Full‑Year Guidance
Positive
May 13, 2026
Spirax Group reported that trading in the first four months of 2026 delivered mid‑single‑digit organic revenue growth and an improved adjusted operating margin, despite a weak global industrial production backdrop and ongoing macroecon...
Executive/Board ChangesRegulatory Filings and Compliance
Spirax Group executives receive routine share awards under incentive plan
Positive
May 7, 2026
Spirax Group has disclosed small routine share transactions by several senior executives under its employee Share Incentive Plan, in line with UK Market Abuse Regulation requirements. Group CEO Nimesh Patel, Group HR Director James Devine, ETS Man...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.