Spirax maintains annual guidance but tariff impact still 'uncertain'

Spirax Group PLC on Wednesday said it delivered low single-digit organic revenue growth so far this year, and maintains its outlook for the whole of 2025.

Shares in Spirax were trading 4.5% lower at 6,290.00 pence on Wednesday morning in London.

The Cheltenham, England-based thermal energy and fluid technology company said that in the first four months of this year, demand trends were consistent with those highlighted in its 2024 results in March.

This included good demand growth in its Watson-Marlow Fluid Technology Solutions business, strong demand for its industrial process heating solutions in Electric Thermal Solutions, and higher demand across all markets in Steam Thermal Solutions, Spirax said.

However, the firm said this was offset by decreased demand for large projects, especially in China and Korea which comprised 22% of STS revenue last year.

Consequently, Spirax said, it delivered low single-digit organic group revenue growth. The adjusted operating profit margin meanwhile was slightly lower against the first four months of 2024, which Spirax said reflected some order shipment dates being moved to later in the year.

Going forward, the company said it maintains its outlook for 2025, but recognises the continuing uncertainty regarding the evolving broader macroeconomic impact of tariffs.

‘Our local manufacturing mitigates the direct exposure of tariffs and we expect to manage the financial impacts through surcharges, pricing and limited reorganisation of manufacturing activity,’ Spirax said.

It added: ‘We continue to anticipate organic growth in group revenues consistent with that achieved in 2024 and group adjusted operating profit margin ahead of the currency adjusted 19.4% margin in 2024. We also anticipate cash conversion above 80%.’

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