Key Points – Strong first-half performance: Spirax-Sarco delivered 5% organic sales growth, 6% organic operating-profit growth, a 19.8% adjusted operating margin and 9% adjusted EPS growth to £1.50.
The company raised its interim dividend 3% to 50.4 pence per share. – Growth varied by division: Electric Thermal Solutions led performance with 11% organic sales growth and a 220-basis-point margin increase, while Watson-Marlow also expanded sales and margins
Steam Thermal Solutions was held back by shipment timing, investment spending and weak China sales, but management expects improvement in the second half. – Full-year outlook maintained: Management remains on track for its guidance, supported by strong order books and expected second-half volume growth rather than a broad industrial-production recovery. Cash conversion is expected to reach about 90% for the year, while net leverage is forecast to return within the target range by year-end. Spirax-Sarco Engineering (LON:SPX) reported 5% organic sales growth and 6% organic operating-profit growth in the first half, outperforming industrial production growth of 1.5% despite what Chief Executive Officer Nimesh Patel described as a weak macroeconomic environment.
The group’s adjusted operating margin rose 10 basis points organically to 19.8%, while adjusted earnings per share increased 9% to £1.50. The board declared an interim dividend of 50.4 pence per share, up 3% from the prior year. Patel said the company remains on track to meet its full-year guidance, supported by strong order books and demand momentum entering the second half.