Spirax Group Plc (SPXSF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, and thank you for joining us for our presentation of Spirax Group's half-year results. I'm Nimesh Patel, Group CEO, and I'm joined by Louisa Baudet, Group CFO. As this is an online presentation, please type your questions into the Q&A box on the webcast at any time, and we'll address as many as we can at the end. I'll start by summarizing our performance in the first half. Against a challenging macroeconomic backdrop, we continued to deliver against our operational priorities by focusing on the controllables, driving group organic sales growth of 3% ahead of industrial production growth, with adjusted operating profit growing 7% organically. Our group margin was 19.3%, 70 basis points ahead organically, as we maintained pricing and cost discipline, while also investing in future growth. The demand trends that I highlighted at the time of our full year results have continued. In particular, we're seeing strong demand growth in BioPharm and Semicon, alongside modest IP growth and weakness in large project demands from China and Korea. In STS, organic growth was 3% excluding these large projects, which is well ahead of IP ex-China of 1.7%. which demonstrates how focusing on our direct sales in target sectors to self-generate MRO and solution sales is driving growth. Including the large project headwind, STS sales were in line organically with the first half of last year. In ETS, demand for our process heating solutions remains strong, with double digit growth in the first half, while Semicon demand also improved double digits. This strong growth in demand alongside our continued delivery of operational improvements, which are increasing throughput from our manufacturing facilities, resulted in ETS organic growth of 10%. In Watson Marlowe, earlier this year, we re...