Spirax Group (GB:SPX)
LSE:SPX
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Spirax Group
(LSE:SPX)
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Rating:61Neutral
Price Target:
6,789.00 p
▲(0.95% Upside)
Action:DowngradedDate: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
Diversified, recurring revenue model
Spirax’s three distinct operating businesses and the strong aftermarket/consumables stream (eg Watson‑Marlow tubing) create durable, repeatable revenue. Engineering-led sales, packaged systems and service offerings deepen installed‑base penetration, supporting steady aftermarket demand and resilience versus one‑off project cycles over the medium term.
Negative Factors
Rising leverage
Material increase in gearing since 2021 meaningfully reduces financial flexibility. Higher leverage raises interest and refinancing exposure, limits the ability to pursue opportunistic acquisitions or aggressive reinvestment, and amplifies downside risk if operational performance slips or macro conditions deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified, recurring revenue model
Spirax’s three distinct operating businesses and the strong aftermarket/consumables stream (eg Watson‑Marlow tubing) create durable, repeatable revenue. Engineering-led sales, packaged systems and service offerings deepen installed‑base penetration, supporting steady aftermarket demand and resilience versus one‑off project cycles over the medium term.
Read all positive factors
Spirax Group (SPX) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.96B
Dividend Yield2.46%
Average Volume (3M)169.83K
Price to Earnings (P/E)30.8
Beta (1Y)1.44
Revenue Growth0.10%
EPS Growth-15.33%
CountryUK
Employees9,960
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.58
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
£8,309.29Price Target Upside23.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)3.19
Revenue Forecast (FY)£1.76B
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 ...
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, regulator...
Spirax Group Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 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 | 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
Negative
6725.00
Price Trends
7332.30
Negative
7098.20
Negative
6846.74
Negative
Market Momentum
-247.54
Positive
39.97
Neutral
44.22
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 6725 is below the 20-day moving average (MA) of 7087.25, below the 50-day MA of 7332.30, and below the 200-day MA of 6846.74, indicating a bearish trend. The MACD of -247.54 indicates Positive momentum. The RSI at 39.97 is Neutral, neither overbought nor oversold. The STOCH value of 44.22 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | £6.62B | 20.02 | 24.91% | 1.29% | -0.32% | -3.96% | |
67 Neutral | £2.62B | 23.57 | 20.10% | 2.04% | 1.93% | -15.07% | |
64 Neutral | £7.22B | 15.58 | 13.46% | 1.93% | -6.93% | 18.57% | |
64 Neutral | £7.28B | 13.74 | 13.42% | 1.26% | -1.97% | 40.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £1.10B | 22.48 | 8.58% | 3.30% | -6.95% | -52.08% | |
61 Neutral | £4.96B | 30.76 | 13.86% | 2.46% | 0.10% | -15.33% |
* Industrials Sector Average
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Spirax Group Corporate Events
Regulatory Filings and Compliance
Spirax Group Executives Disclose Share Awards and Tax-Related Sales
Neutral
Mar 18, 2026
Spirax Group has disclosed a series of routine share transactions by senior executives following the vesting of awards under its 2015 and 2023 Performance Share Plans. Chief executive Nimesh Patel, chief financial officer Louisa Burdett, and other...
Regulatory Filings and Compliance
Spirax Group Confirms Total Voting Rights at 73.8 Million Shares
Neutral
Mar 11, 2026
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 dis...
Executive/Board ChangesRegulatory Filings and Compliance
Spirax Group Executives Increase Shareholdings Under Remuneration Plan
Positive
Mar 10, 2026
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...
Business Operations and StrategyDividendsFinancial Disclosures
Spirax Group Outpaces Industrial Production as Restructuring Weighs on 2025 Profit
Positive
Mar 10, 2026
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 organi...
Regulatory Filings and Compliance
Spirax Group executives receive shares under incentive plan
Neutral
Mar 9, 2026
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 Dir...
Business Operations and StrategyExecutive/Board Changes
Spirax Group Executives Take New Non-Executive Roles at SEGRO and Victrex
Positive
Feb 10, 2026
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 Ma...
Executive/Board ChangesRegulatory Filings and Compliance
Spirax Group Executives Acquire Shares Under Employee Incentive Plan
Neutral
Feb 6, 2026
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...
Business Operations and StrategyExecutive/Board Changes
Spirax Group CFO Louisa Burdett Steps Down from RS Group Board
Neutral
Feb 2, 2026
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 ...
Executive/Board ChangesRegulatory Filings and Compliance
Spirax Group Executives Receive Shares Under Employee Incentive Plan
Neutral
Jan 6, 2026
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...
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.