Spirax Group (SPX) AI Stock Analysis

• Market Cap: £5.20B
• Dividend Yield: 2.46%
• Average Volume (3M): 169.83K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 1.40
• Revenue Growth: 0.10%
• EPS Growth: -15.33%
• Country: UK
• Employees: 9,960
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.37
• Shares Outstanding: 73,776,050
• 10 Day Avg. Volume: 195,337
• 30 Day Avg. Volume: 169,833
• PEG Ratio: 6.59
• Price to Book (P/B): 4.19
• Price to Sales (P/S): 3.04
• P/FCF Ratio: 21.23
• 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: £7,955.56
• Price Target Upside: 9.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: 7,645.00p ▲(5.38% Upside)

Spirax Sarco Engineering's strong financial performance and positive earnings call sentiment are the most significant factors contributing to its score. Technical analysis indicates a neutral trend, while valuation suggests the stock may be overvalued. The company's strategic initiatives and restructuring efforts provide a positive outlook despite some regional challenges.

Positive Factors

Strong Cash Flow Generation

Strong cash flow generation supports financial flexibility and investment in growth opportunities, ensuring long-term sustainability.

Successful Restructuring Efforts

Restructuring efforts enhance operational efficiency and cost savings, positioning the company for improved profitability and competitiveness.

Strong Market Position in Biopharm and Semicon

Strong demand in biopharm and semicon sectors indicates a robust market position, driving future revenue growth and market share.

Negative Factors

Rising Leverage

Increased leverage can strain financial resources, potentially impacting the company's ability to invest in growth and manage economic downturns.

Challenges in China and Korea

Economic and political challenges in key markets like China and Korea can hinder revenue growth and affect the company's global expansion plans.

Currency Impact on Financial Performance

Adverse currency movements can erode profitability and complicate financial planning, affecting long-term financial performance.

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 Sarco generates revenue primarily through the sale of its core products, including steam management equipment, heat transfer solutions, and control systems. The company benefits from a diverse revenue model that includes direct sales, aftermarket services, and maintenance contracts. Key revenue streams come from product sales, which contribute a significant portion of their income, while aftermarket services and spare parts sales provide ongoing revenue and customer retention. Spirax Sarco also engages in strategic partnerships with industry players to enhance its service offerings and expand its market reach, allowing for additional revenue opportunities. Moreover, the company's focus on energy efficiency solutions aligns with global sustainability trends, potentially increasing demand for its products and services.

Spirax Group Financial Statement Overview

Summary

Spirax Sarco Engineering demonstrates solid financial health with strong cash flow generation and profitability. The balance sheet shows a good mix of equity and debt, though rising leverage could be a concern. The company has maintained steady revenue growth and profitability, positioning it well within the industrial machinery sector.

Income Statement

Spirax Sarco Engineering shows strong profitability with a consistent EBIT margin averaging around 18% over the years. Revenue has grown steadily, albeit at a moderate pace. The net profit margin has been stable, indicating efficient cost management. However, the gross profit margin has fluctuated, suggesting some variability in cost of goods sold.

Balance Sheet

The company maintains a healthy equity ratio, consistently above 40%, which indicates a strong capital structure. However, the debt-to-equity ratio has increased, reflecting rising leverage which could pose risks if not managed carefully. Return on Equity remains robust, reflecting effective use of shareholder funds.

Cash Flow

Operating cash flow has been solid, supporting high levels of free cash flow. The free cash flow to net income ratio is strong, indicating efficient cash conversion. While capital expenditures have varied, the company has been successful in maintaining positive free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.66B	1.67B	1.68B	1.61B	1.34B	1.19B
Gross Profit	332.40M	333.90M	1.28B	576.70M	492.30M	398.50M
EBITDA	378.90M	378.30M	390.60M	402.10M	392.00M	324.30M
Net Income	162.70M	191.20M	183.60M	224.70M	234.60M	173.60M
Balance Sheet
Total Assets	2.58B	2.65B	2.71B	2.78B	1.86B	1.74B
Cash, Cash Equivalents and Short-Term Investments	303.20M	334.20M	359.70M	328.90M	274.60M	246.20M
Total Debt	1.05B	1.03B	1.12B	1.08B	465.20M	509.10M
Total Liabilities	1.45B	1.44B	1.55B	1.62B	853.20M	889.10M
Stockholders Equity	1.14B	1.21B	1.16B	1.17B	1.01B	851.30M
Cash Flow
Free Cash Flow	248.30M	238.50M	193.20M	113.70M	204.20M	202.40M
Operating Cash Flow	317.20M	312.80M	298.60M	231.20M	268.30M	252.00M
Investing Cash Flow	-85.90M	-65.30M	-95.70M	-576.60M	-62.10M	-52.50M
Financing Cash Flow	-174.10M	-215.00M	-219.20M	362.20M	-204.80M	-143.90M

Spirax Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7255.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SPX, the sentiment is Positive. The current price of 7255 is above the 20-day moving average (MA) of 6893.00, above the 50-day MA of 6866.60, and above the 200-day MA of 6481.14, indicating a bullish trend. The MACD of 83.52 indicates Negative momentum. The RSI at 69.71 is Neutral, neither overbought nor oversold. The STOCH value of 84.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SPX.

Spirax Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMI	75 Outperform	£6.45B	27.97	23.79%	1.29%	-0.32%	-3.96%
WEIR	75 Outperform	£7.84B	25.61	17.68%	1.26%	-1.97%	40.55%
SPX	72 Outperform	£5.20B	31.98	14.19%	2.46%	0.10%	-15.33%
BOY	69 Neutral	£1.29B	47.07	4.10%	3.30%	-6.95%	-52.08%
ROR	66 Neutral	£2.75B	28.32	16.97%	2.04%	1.93%	-15.07%
SMIN	66 Neutral	£7.77B	28.70	12.85%	1.93%	-6.93%	18.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Spirax Group Corporate Events

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.

Spirax Group Announces Managerial Transactions and Addresses Clerical Error

Spirax Group plc has announced a series of transactions involving key managerial personnel under its Share Incentive Plan. These transactions, which include the acquisition and award of Partnership and Matching Shares, were conducted on the London Stock Exchange and involve several senior executives, including the Group CEO and HR Director. The announcement also addresses a clerical error related to the company’s Direct Re-investment Investment Plan for the interim dividend paid in November 2025.

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 Announces DRIP Transactions for Key Executives

Spirax Group plc has announced the completion of several DRIP (Dividend Reinvestment Plan) transactions involving key managerial personnel. These transactions, conducted on the Main Market of the London Stock Exchange, involved the award of ordinary shares following the interim dividend payment. The transactions highlight the company’s ongoing commitment to rewarding its leadership team and maintaining transparency in its financial dealings.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £79.50 price target. To see the full list of analyst forecasts on Spirax Group stock, see the GB:SPX Stock Forecast page.

Spirax Group Reports Strong Organic Growth Amid Challenging Market Conditions

Spirax Group PLC reported organic revenue growth and improved profit margins for the ten months ending October 2025, despite challenging global industrial production conditions. The company saw strong sales growth in its Electric Thermal Solutions and Watson-Marlow divisions, driven by operational improvements and increased demand in sectors like biopharmaceuticals and semiconductors. Spirax remains on track to achieve annualized savings from restructuring efforts, which are being reinvested into growth priorities. The company’s financial position has strengthened, with reduced net borrowings and a stable outlook for continued organic growth in revenues and operating profit margins.

The most recent analyst rating on (GB:SPX) stock is a Hold with a £7500.00 price target. To see the full list of analyst forecasts on Spirax Sarco Engineering stock, see the GB:SPX Stock Forecast page.

Spirax Group Announces Managerial Share Transactions

Spirax Group plc has announced transactions involving its senior management under the company’s employee share schemes. The transactions, which include the acquisition of partnership shares and the award of matching shares, involve key figures such as the Group CEO, HR Director, Sustainability Director, and Managing Director of ETS. These transactions, conducted on the London Stock Exchange, reflect the company’s ongoing commitment to aligning managerial interests with shareholder value through its Share Incentive Plan.

The most recent analyst rating on (GB:SPX) stock is a Hold with a £7500.00 price target. To see the full list of analyst forecasts on Spirax Sarco Engineering stock, see the GB:SPX Stock Forecast page.

Spirax Group Appoints Andrew Kemp to Board in Strategic Move

Spirax Group has announced the appointment of Andrew Kemp as an Independent Non-Executive Board Director and member of the Audit Committee, effective from November 1, 2025. This appointment is part of the company’s succession planning to support its ‘Together for Growth Strategy.’ Andrew Kemp, who will succeed Kevin Thompson as Chair of the Audit Committee in April 2026, brings extensive experience from his roles in various companies and as a former PwC executive. This strategic move is expected to bolster Spirax Group’s governance and support its ongoing growth and development.

The most recent analyst rating on (GB:SPX) stock is a Buy with a £7539.00 price target. To see the full list of analyst forecasts on Spirax Sarco Engineering stock, see the GB:SPX Stock Forecast page.