JPM | BEST OF BRITISH - Burnham beats Binface. What next? Plus Conference Special - Convatec, Spirax & Barratt Redrow. Plus Taylor Wimpey & Bunzl

Research evidence excerpt

JPM | BEST OF BRITISH - Burnham beats Binface. What next? Plus Conference Special - Convatec, Spirax & Barratt Redrow. Plus Taylor Wimpey & Bunzl

Ben Watson - UK Specialist Sales AC (44-20) 7134-1308 Europe Specialist Sales J P M O R G A Nben.watson@jpmorgan.com

J.P. Morgan Securities plc 21 June 2026

2) SPIRAX - Improving end markets & sustained IP outperformance suggests change in estimate momentum

I saw management the JPM Industrials conference CEO Nimesh Patel cut a more relaxed figure as his initiatives are now showing

traction and end markets are improving. After a period of negative estimate momentum, Spirax looks to be firmly on track. Shares

could now consider the path of estimates rising and the multiple should improve as concerns dissipate.

a) End mkts - crucial end mkts are improving. China & Korea are “moderating in their rate of decline” and will not drag in

calendar 2027. Semicon is improved and Biopharma is improving too led by consumables rather than medtech hardware. The

forecast acceleration to 6% group organic in 2027 is underpinned by self-driven growth

b) Organic revs vs IP...Current c.+5% organic growth is a significant uplift on +1.5% contemporary IP. Self-driven growth has

become a more potent lever

c) Margins? STS margin will remain at c23% as leverage is being reinvested into sales people and driving growth. ETS is

improving throughput at the Ogden facility driving op. leverage and allowing pricing uplift as service/availability ameliorates.

Mix improvement (more semi end mkt) and cost cutting beneficiary also driving ETS profitability.

d) Quality of earnings? Duration, diversification and sanctity of business model. Spirax is not seeing explosive growth from DC

exposure but offers highly diversified end mkt/geographic exposure.