Spirax Group PLC (LSE:SPX) saw shares fall 10% on Tuesday despite delivering a solid set of first-half results, as investors were left wanting more after the company held its full-year guidance steady rather than upgrading it.
The steam engineering specialist reported group revenue up 5% to £863.8 million for the six months to 30 June, comfortably ahead of its own internal plan of 1.5% growth. Statutory operating profit jumped 44% to £154.2 million, with margin up 490 basis points to 17.9%, boosted by the comparison against one-off restructuring costs taken in 2025. On an adjusted basis, operating profit rose 8% to £171.1 million, with margin up 50 basis points to 19.8%.
All three divisions delivered growth, with Electrothermal Technology sales up 11% and Watson-Marlow Fluid Technology Solutions sales up 7%, while Steam Thermal Solutions grew a more modest 1% amid phasing of shipments. The board reiterated full-year guidance of mid-single-digit organic revenue growth and organic margin progress.
Group CEO Nimesh Patel said the company had "again delivered resilient mid-single-digit organic growth in revenue and profit, well ahead of IP," pointing to continuing momentum in end markets such as Semicon and Biopharm as underpinning expectations for the second half.
Despite the operational progress, Dan Coatsworth, head of markets at AJ Bell, said the share price reaction reflected disappointment that Spirax hadn't gone further: "Investors were disappointed by the lack of upgrades to earnings guidance in its half-year results."
