Spirax Group (LSE:SPX) reported organic revenue growth of 5% for the six months to 30 June, comfortably outpacing global industrial production growth of 1.8% over the same period.
The specialist manufacturer of steam, electric thermal and fluid technology systems posted adjusted operating profit up 6% organically, with the adjusted operating margin rising to 19.8% from 19.3% a year earlier, while adjusted earnings per share grew 9%.
Watson-Marlow Fluid Technology Solutions led the divisional performance with 7% organic sales growth, as biopharmaceutical order intake stayed ahead of sales and reached its highest quarterly level since the 2021 pandemic peak, pushing that division's margin up 80 basis points to 27.5%. Electric Thermal Solutions grew sales 11% organically, with margin up 220 basis points to 17.2% on stronger Semicon and Heat Trace demand. Steam Thermal Solutions grew a more modest 1%, with margin down 170 basis points to 22.0% on shipment phasing and first-half investment weighting.
"Driving growth ahead of our markets, in spite of external conditions, is now becoming embedded in how we operate," said Nimesh Patel, Group Chief Executive Officer.
The company reiterated full-year guidance of mid-single-digit organic revenue growth with organic margin progression above 2025's 20.0% level, expecting second-half sales growth to accelerate in Steam Thermal Solutions and high-single-digit growth to continue in both Electric Thermal Solutions and Watson-Marlow.
News Intelligence what this means for the company
Spirax Group delivered first-half organic revenue growth of 5%, outpacing global industrial production growth of 1.8%, while expanding adjusted operating margin to 19.8% from 19.3% and growing adjusted EPS by 9%. The company reiterated mid-single-digit full-year organic revenue growth guidance with margin progression above 2025's 20.0% level, signalling confidence despite mixed divisional momentum—Watson-Marlow and Electric Thermal Solutions accelerating, Steam Thermal Solutions lagging at 1% growth.
Spirax is demonstrating consistent outperformance versus industrial production cycles, with margin expansion and strong order intake in its highest-margin biopharmaceutical segment offsetting near-term weakness in Steam Thermal Solutions. Reiterated full-year guidance and expected acceleration in the second half suggest management sees the first-half slowdown in Steam as temporary, not structural.
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