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Investing.com - Spirax Group PLC on Thursday reported improved organic sales growth and adjusted operating profit margin for the ten months ended October 31, 2025, compared to the first half of the year, despite challenging global industrial production conditions.
The company reiterated its full-year guidance, expecting organic revenue growth consistent with 2024 levels and improved margins.
The thermal energy and fluid technology solutions provider reported that its Watson-Marlow business saw an acceleration in sales growth during the four-month period to October, driven by continued double-digit order growth in its Biopharm segment.
Electric Thermal Solutions maintained the strong organic sales growth seen in the first half, supported by operational improvements and strong demand for semiconductor equipment solutions.
Steam Thermal Solutions sales for the four-month period were broadly level organically compared to the prior year, as large project sales continued to be impacted by challenging industrial production conditions.
However, the company noted that the rate of organic sales decline in China is moderating compared to the first half, with continuing double-digit growth in MRO (maintenance, repair, and operations) sales.
"We have continued to focus on the strategic priorities within our control to drive growth and margin," said Louisa Burdett, Chief Financial Officer of Spirax Group.
The company remains on track to deliver annualized savings of approximately £35 million from its restructuring program, most of which is being reinvested in organic growth priorities. Net borrowings (excluding leases) at October 31 were £596 million, down from £658 million on June 30, with the Group’s net debt to EBITDA ratio improving to 1.6x from 1.8x.
For the full year, Spirax Group continues to anticipate organic growth in Group revenues consistent with 2024 and "well ahead" of industrial production growth. The Group’s adjusted operating profit margin is expected to be ahead of the currency-adjusted 2024 margin, driving mid-single digit organic growth in adjusted operating profit.