Stelrad Group Plc · LSE:SRAD
Stelrad — H1 2025 Earnings Presentation
33 slides from Stelrad's earnings presentation, Aug 8, 2025
Slide 1: Continued market leadership, well positioned for sustainable growth
Continued market leadership Well positioned for sustainable growth Stelrad Group plc Results for the six months ended 30 June 2025
Slide 2: Agenda
RESULTS FOR THE PERIOD Agenda • Overview • Financial review • Business review • Summary and outlook • Q&A Trevor Harvey Leigh Wilcox Chief Executive Officer Chief Financial Officer Stelrad Group plc 2
Slide 3: Overview
Overview Trevor Harvey Chief Executive Officer
Slide 4: Continued market leadership, resilient underlying financial performance
2025 INTERIM RESULTS SUMMARY Continued market leadership, resilient underlying financial performance • Industry leading market share at 19.9%(1) (2023: 20.9%) with the reduction due to the impact of market mix in the countries we serve – Excluding Russia, market share was 25.4% (2023: 25.3%) • On Ti
Slide 5: Financial review
Financial review Leigh Wilcox Chief Financial Officer
Slide 6: H1 financial performance snapshot
FINANCIAL REVIEW H1 financial performance snapshot Strong adjusted operating profit despite revenue decline Adjusted Adjusted Adjusted ROCE % Dividend operating Leverage Revenue operating operating cash (before lease (LTM) profit profit % conversion liabilities) £136.5m £15.9m 11.7% 26.9% 3.04p 60.5
Slide 7: Resilient performance in challenging market conditions
FINANCIAL REVIEW Resilient performance in challenging market conditions Revenue Adjusted operating profit Adjusted EPS Interim dividend per share £136.5m £15.9m 6.41p 3.04p H1 25 136.5 H1 25 15.9 H1 25 6.41 H1 25 3.04 H1 24 143.1 H1 24 15.7 H1 24 6.34 H1 24 2.98 H1 23 157.0 H1 23 14.0 H1 23 6.36 H1
Slide 8: Robust contribution per radiator providing strong operating leverage
FINANCIAL REVIEW Robust contribution per radiator providing strong operating leverage Radiator volumes sold Premium panel radiator penetration Contribution per radiator 2,296k units 5.7% £20.33 H1 25 2,296 H1 25 5.7% H1 25 20.33 H1 24 2,412 H1 24 5.8% H1 24 20.48 H1 23 2,622 H1 23 5.9% H1 23 17.66 H
Slide 9: Revenues fall in subdued volume environment
REVENUE Revenues fall in subdued volume environment H1 2025 H1 2025 H1 2024 Movement Movement Revenue by geographical market £m % of total £m £m % UK & Ireland 65.1 47.7 69.1 (4.0) (5.8) Europe 62.9 46.1 66.8 (3.9) (5.9) Turkey & International 8.5 6.2 7.2 1.3 17.9 Total 136.5 100.0 143.1 (6.6) (4.6)
Slide 10: Radiator size benefits and structural currency gains offsetting decline in sales volumes
ADJUSTED OPERATING PROFIT Radiator size benefits and structural currency gains offsetting decline in sales volumes H1 2025 H1 2024 Movement Movement Adjusted operating profit by geographical market £m £m £m % UK & Ireland 15.0 15.1 (0.1) (0.3) Europe 3.6 3.7 (0.1) (5.4) Turkey & International 0.7 0.
Slide 11: Investment in strategic working capital, leverage reduced
CASH FLOW Investment in strategic working capital, leverage reduced H1 2025 H1 2024 Movement £m £m £m EBITDA 21.8 21.7 0.1 Gain on disposal of property, plant and equipment (0.1) (0.1) - Share-based payments 0.6 0.3 0.3 Working capital (9.0) (7.6) (1.4) Working capital – exceptional items - (2.2) 2.
Slide 12: Exceptional items – Radiators SpA
FINANCIAL REVIEW Exceptional items – Radiators SpA £m Impairment of goodwill 2.6 Impairment of customer relationships 1.4 Impairment of property, plant & equipment 5.7 Inventory provision 2.3 Exceptional items 12.0 • Radiators SpA business has been exposed to declining market volumes in France and G
Slide 13: Balance sheet, taxation, dividends and ROCE
BALANCE SHEET, TAXATION, DIVIDENDS AND ROCE Balance sheet, taxation, dividends and ROCE Taxation Dividends • Effective tax rate 33.0% (H1 24: 31.5%) on an • Interim dividends of 3.04 pence, 2.0% increase adjusted basis on 2024 • Tax rate increased year-on-year due to non- • In line with progressive
Slide 14: Technical guidance
TECHNICAL GUIDANCE Technical guidance • Market environment expected to show some improvement in H2 2025 • Benefit of lower steel prices expected to be realised in H2 2025 • Other key input prices are expected to remain stable in 2025 • Capital expenditure and working capital investment in line with
Slide 15: Progress towards medium-term targets
MEDIUM-TERM TARGETS Progress towards medium-term targets Market share improvement Medium-term target: 1–2% Market share is stable, excluding Russia, with weak UK market diluting gains (Data released annually) 2024: stable elsewhere Contribution per radiator Medium-term target: >£21.0 Underlying cont
Slide 16: Business review
Business review Trevor Harvey Chief Executive Officer
Slide 17: The Group is well positioned for profitable, sustainable growth
BUSINESS REVIEW The Group is well positioned for profitable, sustainable growth… Attractive market Key structural Sustainable Clear, consistent Key medium-term opportunity* growth competitive strategic objectives targets drivers advantages Market share improvement 321m homes in Replacement Growing m
Slide 18: The supplier of choice regardless of market conditions
BUSINESS REVIEW The supplier of choice regardless of market conditions European steel panel radiators* Top 5 manufacturers' share evolution 2022-2024 25% • c.75% of steel panel 20.9% 19.9% manufacturing now relocated 20% 19.3% Total market to low-cost locations 18.1% 17.8% 17.5% 15% • Annualised opt
Slide 19: Including in our key European markets
BUSINESS REVIEW Including in our key European markets #1 in the UK 52.1% • 52.1% share: -0.5ppts vs 2023, UK 52.6% +0.6 ppts vs 2022 51.5% #1 in the Netherlands • 49.2% share: +1.6 ppts vs 2023, 49.2% +5.6 ppts vs 2022 Netherlands 47.6% 43.6% #1 consolidated in France • 33.1% share: -0.1 ppts vs 202
Slide 20: A clear strategy to capitalise on long-term structural opportunities
BUSINESS REVIEW A clear strategy to capitalise on long-term structural opportunities Growth driver Strategic focus Key initiatives 1 Leverage Stelrad trade strengths Leverage Stelrad’s strong brand positions Support installers and merchant staff in upselling Increasing Installer marketing to a
Slide 21: Significant progress against strategy to drive premium panel penetration
INCREASING PREMIUMISATION AND OPTIMISING ROUTES TO MARKET Significant progress against strategy to drive premium panel penetration • Marginal decline in premium panel % as a result of low UK consumer confidence Premium steel panels radiator mix Volume as a % of steel panel radiators sold • UK remain
Slide 22: Decarbonisation remains a key, longer term opportunity
THE DRIVE FOR DECARBONISATION Decarbonisation remains a key, longer term opportunity • Decarbonisation of commercial Average Heat Output (BTU) and residential property remains a 4100 long-term, structural tailwind 4000 • Average radiator size has 3900 +4% continued to increase for the third successi
Slide 23: Fit for the Future strategy, good ESG progress
SUSTAINABILITY With its Fit for the Future strategy, the Group is also making good ESG progress In 2025, Stelrad: • Published an environmental product declaration for the Green Compact range, showing significantly lower impact than other product ranges • Reviewed and refined our supplier auditing pr
Slide 24: Summary and outlook
Summary and outlook Trevor Harvey Chief Executive Officer
Slide 25: Well positioned for sustainable future growth in line with medium term targets
SUMMARY AND OUTLOOK Well positioned for sustainable future growth in line with medium term targets Outlook for the full year unchanged “ The key priority for the • The Board expects a modest level of market volume improvement in the second half of the year augmented by the strength of Stelrad’s Grou
Slide 26: Questions
Questions
Slide 27: Appendices
NUVUVUN \ @ Appendices
Slide 28: Stelrad is Europe's leading radiator manufacturer
STELRAD AT A GLANCE Stelrad is Europe’s leading radiator manufacturer Our core purpose is helping to heat homes sustainably 2024 revenue £290.6m 1,400+ 500+ £14.2m people customers 40+ 5 £137.4m countries market leading brands £139.0m #1 In hydronic heat emitters • 11.8% overall market share • 20.2%
Slide 29: Capital allocation priorities
CAPITAL ALLOCATION Capital allocation priorities Strategic execution Strong free cash flow growth Capital allocation Investment for Shareholders Leverage Selective organic growth returns control acquisitions Continued Via a progressive Targeting a leverage Based on our investment in: dividend policy
Slide 30: Consolidated income statement summary
CONSOLIDATED INCOME STATEMENT SUMMARY H1 2025 H1 2024 Movement Movement £m £m £m % Revenue 136.5 143.1 (6.6) (4.6) EBITDA(1) 21.8 21.7 0.1 0.5 Adjusted operating profit(1) 15.9 15.7 0.2 1.1 Exceptional items (12.0) - (12.0) n/a Amortisation of customer relationships (0.1) (0.1) - 1.5 Operating profi
Slide 31: Consolidated balance sheet summary
CONSOLIDATED BALANCE SHEET SUMMARY 30 June 31 December 30 June 31 December 2025 2024 2025 2024 £m £m £m £m Non-current assets Non-current liabilities Property, plant and equipment 73.8 79.2 Interest-bearing loans and borrowings 87.8 83.3 Intangible assets 0.5 4.6 Deferred tax liabilities 0.2 0.2 Tra
Slide 32: Consolidated statement of cash flow summary
CONSOLIDATED STATEMENT OF CASH FLOW SUMMARY H1 2025 H1 2024 Movement £m £m £m EBITDA(1) 21.8 21.7 0.1 Gain on disposal of property, plant and equipment (0.1) (0.1) - Share-based payment charge 0.6 0.3 0.3 Working capital (9.0) (7.6) (1.4) Working capital – exceptional items - (2.2) 2.2 Net capital e
Slide 33: Disclaimer
DISCLAIMER This presentation is not intended to, and does not constitute or form part of, any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in Stelrad Group plc or any other invitation or inducement to en