Spirax Group Plc (SPXSF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

is waiting for the queue. Hello, and thank you for joining us for this presentation of Sparex Group's results. I'm Nimesh Patel, Group CEO, and I'm joined by Louisa Burdett, our Group CFO. I'm going to start by summarizing our 2025 performance. Today's results demonstrate our ability to deliver good organic growth at high margins. by focusing on the operational priorities that are within our control, and despite the weak macroeconomic environment that endured through the year. Looking to our organic measures, we outperformed IP with group sales growth of 5%, adjusted operating profit grew 6%, and all three businesses delivered growth and improved margins. Group margin was 20%, up 30 basis points, as we maintained pricing and cost discipline, and managed the headwinds from FX and tariff impacts, while also investing in future growth. So, a good set of results, slightly ahead of expectations. I would like to thank my colleagues around the world for their commitment to achieving these results through advancing the execution of our strategy. In SCS, market trends we've been highlighting since the first half of 2024 played out as expected, with geopolitical tension and tariff volatility driving lower IP and weak demand for large projects. This particularly impacted China and Korea, but in both markets we began to see headwinds moderate in the second half, as we'd anticipated. Importantly, we continued to offset these headwinds through our focus on MRO and solution sales, delivering 1% growth in STS and 3%, excluding large projects in China and Korea, with a margin of 23.5%. Our operational focus is translating into real performance in ETS, where the North American factory output has risen by over 20% in the last two years, During 2025, strong demand across all three ETS d...