Shares of Spirax-Sarco Engineering climbed roughly 4% on Wednesday after the company disclosed that group organic revenue growth and adjusted operating profit margin for the ten months ended October 31 both met management expectations and exceeded the pace recorded in the first half of the year.
The engineering group reiterated its full-year targets, holding to a forecast of mid-single-digit organic growth in group revenues and an adjusted operating profit margin that remains above the 2025 level of 20.0%.
Division performance and order trends
Steam Thermal Solutions (STS) reported organic sales growth in the four months through October that surpassed first-half levels. Management attributed the improvement to shipments supported by a larger orderbook and sustained order momentum. The company expects STS second-half margins to be higher than those posted in the first half, a trend that underpins the expectation of a full-year margin broadly matching the 2025 result. The company also said China sales, which represented about 15% of STS sales in 2025, are expected to equal 2025 levels for the full year.
Electric Thermal Solutions (ETS) continued the strong organic growth seen in the first half across the four months to October. ETS reported robust order intake in Process Heating and Heat Trace across all sectors, while Equipment Heating benefited from increased semiconductor demand. The company noted that, excluding sales to semiconductor customers - which accounted for roughly 13% of ETS sales in 2025 - organic sales growth for ETS remains above the group's mid-single-digit medium-term target.
Watson-Marlow Fluid Technology Solutions recorded higher organic sales growth in Biopharm during the four-month period versus the first half, with orders continuing to outpace sales. The division also delivered strong organic growth in Process Industries, driven by market share gains.
Balance sheet and cash flow outlook
Net borrowings excluding leases stood at
Net borrowings excluding leases were at October 31, down from at June 30.
Note: The numeric figures for net borrowings above were provided in the company's statement as .
The group's net debt to EBITDA ratio improved to 1.3x from 1.6x, and the company projects full-year cash conversion of around 90%.
What management said and the market reaction
Management's commentary on stronger orderbooks and improved division margins, combined with a lower net borrowings position and a better net debt to EBITDA ratio, contributed to the positive share reaction. The company kept its guidance intact, signalling confidence that second-half division margins will support the full-year margin target above the 2025 level of 20.0%.
Summary takeaways
- Group organic sales growth and adjusted operating profit margin for the ten months to October 31 met expectations and exceeded first-half results.
- STS, ETS and Watson-Marlow divisions all reported stronger momentum in the four months through October versus the first half, underpinned by higher order intake and market share gains in select sectors.
- Net borrowings excluding leases fell by the October 31 reporting date and net debt to EBITDA improved to 1.3x; management forecasts roughly 90% cash conversion for the full year.