Spirax Group (1K) | Buy | Perception Lags the Recovery

Research evidence excerpt

Spirax Group (1K) | Buy | Perception Lags the Recovery

#EstimatesRevision

Release date: 18 May 2026

Company research

Buy Spirax Group

United Kingdom | Capital goods MCap: GBP5.1bn

Target Price: 8,900.0p Change in TP: none Bloomberg: SPX LN Reuters: SPX.L

Current Price: 6,915.0p Change in Sales: 0.2% 26E/0.2% 27E Free float 99.1%

Avg. daily volume (GBPm) 22.9 Up/downside: 28.7% Change in Adj EBIT: 0.2% 26E/0.2% 27E

YTD abs performance 1.4%

Market data: 15 May 2026 Change in Adj. EPS: 0.2% 26E/0.2% 27E

52-week high/low (p) 7,960.0/5,610.0

Perception Lags the Recovery Price performance

Why this report?

With this report, we transfer coverage of Spirax Group and update our 8,000

estimates following the Q1 trading update and the subsequent negative 7,500

share price reaction. While management’s statement was relatively cautious, 7,000

we believe the FY 2026 outlook remains supportive of our investment thesis.

6,500

In our view, the key pillars of the story are unchanged: ETS continues to show

strong momentum, Watson-Marlow is delivering a robust recovery, and STS 6,000

is gradually improving as headwinds in China and Korea ease. After a period 5,500

May 25 Nov 25 May 26

of softer sentiment, we believe Spirax is increasingly well positioned for the

remainder of the year, with the market overly cautious on the pace of Price Stoxx Europe 600 (rebased)

recovery. Given the group’s growth trajectory, margin progression and the

prospect of double-digit EPS growth from 2027, we see clear upside from

current levels, especially with the shares trading at historic lows relative to

their c.29x 10-year average NTM P/E. We therefore reiterate our positive FY to 31/12 (GBP) 12/26E 12/27E 12/28E

Sales (m) 1,766 1,877 1,995 investment stance and BUY rating. EBITDA adj (m) 414 457 498