SPIRAX GROUP (+) : London, 25ºC, dinner with Spirax

Research evidence excerpt

SPIRAX GROUP (+) : London, 25ºC, dinner with Spirax

EQUITIES

CAPITAL GOODS

SPIRAX GROUP OUTPERFORMPRICE* 6,915p  TARGET PRICE 8,350p (UPSIDE 21%)

FLASH NOTE

London, 25ºC, dinner with Spirax

22 MAY 2026 Securities Research Report Production time: 07:14* (London time)

Research Analyst & Publishing Entities

Stephan Klepp, CFA BNP Paribas London Branch (+44) 734 573 1907 stephan.klepp@uk.bnpparibas.com

What happened?

We hosted an investor dinner with Spirax Group’s CFO Louisa Burdett and the group’s IR team (Mal Patel, Candice

Johnson) in London on Thursday, 21 May 2026.

BNPP View: Following the, in our view, strong 4M 2026 trading statement (see SPIRAX GROUP: First glance - 4M

2026: MSD organic growth, all divisions delivering) with all three divisions having overcome their respective

performance niggles of the recent past, the dinner discussion mainly focused on the business’ opportunities ahead. The

latter very much confirms our view that the company is finally on its path towards is medium-term targets of MSD organic

growth (BNPPe: average 5.1% for 2026-2028) and 22-23% margins (BNPPe: 21.7% in 2027). With that prospect, we

argue that investors will look further ahead as business disruptions are in the past and the company is returning to its

strong pre-Covid topline and profit compounding. On our conservative, below-consensus estimates, we recently

upgraded Spirax Group to Outperform (see SPIRAX GROUP: Time to shine again - upgrade to Outperform).

On STS…: In the current environment, energy savings are said to remain in focus of clients. STS sensitivity to IP

continues to have an impact on clients’ deduction making. Nonetheless, growth outside of China continued and the

dilution of growth from China is moderating further.