Spirax backs 2026 forecast despite tepid industrial backdrop

(Alliance News) - Spirax Group PLC on Wednesday said it started the year in line with expectations despite a "weak" industrial backdrop.

The Gloucestershire-based thermal energy and fluid technology company said it has seen mid-single-digit on-year organic growth in revenue in the first four months of 2026, with the adjusted operating profit margin improved on an organic basis.

"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 IP1 in Q1 2026 was 1.4%, remaining weak in key European markets. Excluding China, industrial production 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," Spirax said.

In the Steam Thermal Solutions arm, demand grew ahead of industrial production and in line with expectations. It said demand in China and Korea also continued to recover.

Electric Thermal Solutions saw double-digit demand, while at Watson-Marlow Fluid Technology Solutions, it remained "robust".

Spirax added: "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."

Spirax shares fell 0.5% to 7,130.00 pence each in London on Wednesday morning.

By Eric Cunha, Alliance News news editor

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