Shares in Spirax Group PLC (LSE:SPX) fell 7.3% after its latest trading update highlighted a patchy performance across the group and reinforced the need for a stronger second half to meet full-year targets.
The company maintained its guidance for 2025 but flagged several challenges.
Currency headwinds have worsened, with foreign exchange expected to drag profits by 6%, up from 4% previously.
Tariff uncertainty is also a new concern. Margins slipped slightly in the first quarter, putting more pressure on the second half to deliver the promised improvement.
The business remains a story of contrasts. Watson-Marlow, the specialist pumps division, is showing signs of recovery, while the electric thermal solutions arm is delivering solid growth.
But the core steam business, which makes up a large part of group revenues, is struggling in key markets such as China and South Korea, which together account for over a fifth of sales.
Stifel kept its 'sell' rating on the stock, noting that although some parts of the group are improving, the outlook remains clouded by macro risks, soft demand in Asia and further earnings pressure from exchange rates.
Manufacturing forecasts outside China have also been revised down slightly, adding to the cautious tone.
Spirax shares had rallied from earlier lows as fears over new US tariffs eased, but now trade on around 23 times expected earnings for 2025.
With other names in the sector offering stronger momentum or better value, analysts remain wary of chasing the rebound.
The shares fell 480p to 6,105p.