Spirax Group: H1‘26 Results Conference Call feedback

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Europe Equity Research

11 August 2026

Spirax Group

H1’26 Results Conference Call feedback

Neutral

SPX.L, SPX LN

Price (10 Aug 26):7,650p

Price Target (Dec-27):8,600p

Spirax Group released its H1’26 results this morning, for details please see our

results note. Shares are -10.5% at the time of writing, some of which is driven by

travel and arrive, but overall we see the magnitude of the move as overdone. The

STS miss has been a focus this morning and on the call management explained that

order momentum has been picking up with >3% growth ex China (>2x IP). The

Middle East also contributed negatively to STS, which means the underlying

growth was even better. Management is confident on the H2 STS margins given

the visibility of shipments that were pushed into H2, lower investments than in H1

and IP growth which should accelerate (albeit the group has taken a conservative

approach). ETS performance was strong and it is firmly on track to deliver >20%

margins, especially when pricing improves. We summarise our key take-aways

from the post-results conference call.

STS growth: >3% growth in orders resulted in 1% sales growth in H1, with

shipments delayed into H2. There was a LSD £million impact between H1/H2.

The Middle East is 1% of group sales but more heavily weighted to STS,

implying that growth was even faster. There is volume growth. The group is

seeing a small uptick in large orders across the STS business (albeit against

easy comps). As such, the order book is healthy and momentum is strong. The

confidence in China getting to neutral in H2 rather than 2027 is higher. China

MRO and Solutions sales grew c.DD% as it is has been growing. Margins are

better than the large project margins. Once China is back in growth mode, the

group expects to grow in line with the rest of the business, if not better.

Medium-term STS growth: This should result in 3-4% growth for STS.

Digital and decarbonisation adds c.1% to take STS to 4-5% growth.

STS margin. The good order momentum provides visibility into H2 sales

growth. The higher operating leverage should drive margin improvement in

H2.There will also be fewer investments in H2. Spirax does not assume a

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