# Spirax Group delivers growth ahead of industrial production in early 2026

- Link: https://www.directorstalkinterviews.com/spirax-group-delivers-growth-ahead-of-industrial-production-in-early-2026/4121251382
- Published: 2026-05-13T07:25:43+01:00
- Author: Amilia Stone

**Spirax Group plc **(LON:SPX) has announced its trading update in respect of the
four months ended 30 April 2026

_Organic growth in line with expectations across all Businesses; full-year guidance
reiterated_

**Economic environment**

Macroeconomic uncertainty remained elevated, with conflict in the Middle East adding
to the ongoing trade tariff developments and higher energy costs weighing on industrial
production growth.  Global IP^(1) in Q1 2026 was 1.4%, remaining weak in key European
markets. Excluding China, IP was 1.5% with the full year forecast of 1.9% broadly
unchanged from February and weighted to the second half.  We remain cautious on 
the IP outlook as reflected in our guidance.

**Trading**

We continued to execute against our strategic priorities, delivering organic growth
ahead of IP alongside margin progression.  

Demand trends were consistent with those highlighted in our 2025 full year results
in March.  

In STS^(2), demand grew ahead of IP and in line with our expectations, supported
by sustained strength in MRO and solutions across all regions and some recovery 
in large project demand.  Demand in China and Korea also continued to recover.  
ETS^(2) delivered double-digit demand growth across all divisions, including continuing
strong growth in Semicon^(3).  In WMFTS^(2),  demand remained robust in both Process
Industries and Biopharm^(3). 

As a result, we delivered mid-single-digit organic growth in Group revenues.  Group
adjusted operating profit margin improved on an organic basis compared to the same
period in 2025.

**Financial Position**

Net borrowings (excluding leases) at the end of the first quarter were £575 million(
31 December 2025: £565 million), representing a net debt to EBITDA ratio of 1.5x(
31 December 2025: 1.5x).  The final dividend of 121.1 pence per share, representing
a 3% increase over 2024 and a cash impact of £89 million, will be paid on 22 May
2026, subject to shareholder approval.

**Outlook**

We have delivered organic growth across the Group in the first four months of the
year in line with our expectations and despite the weak IP environment, we reiterate
our guidance for 2026. We anticipate mid-single-digit organic growth in Group revenues
well ahead of IP; and an increase in Group adjusted operating profit margin on an
organic basis.  We continue to expect organic growth in revenue and adjusted operating
profit margin to be higher in the second half of the year, reflecting our usual 
seasonal profile.

1 ‘IP’: Industrial Production growth; source: CHR Economics, April 2026

2 ‘STS’: Steam Thermal Solutions; ‘ETS’: Electric Thermal Solutions; ‘WMFTS’: Watson-
Marlow Fluid Technology Solutions

3 ‘Biopharm’: WMFTS sales to the Pharmaceutical & Biotechnology sector; ‘Semicon’:
ETS sales to the Semiconductor Wafer Fabrication Equipment Manufacturing sector

_* Eliminates scopes 1 and 2 greenhouse gas emissions when connected to a green 
electricity source._

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