Spirax Group Shares Drop 10% After Steady Guidance

Spirax Group PLC shares fell 10% on Tuesday after the company maintained its full-year guidance despite reporting strong first-half growth. For the six months ending June 30, the steam engineering specialist reported group revenue of £863.8 million, a 5% increase that exceeded its internal growth target of 1.5%.

Statutory operating profit rose 44% to £154.2 million, while adjusted operating profit grew 8% to £171.1 million. Growth occurred across all three divisions, with Electrothermal Technology and Watson-Marlow Fluid Technology Solutions leading the gains. Group CEO Nimesh Patel attributed the performance to momentum in the Semicon and Biopharm end markets.

Despite the positive results, the board declined to upgrade its full-year guidance, which forecasts mid-single-digit organic revenue growth and organic margin progress. This decision led to investor disappointment and the subsequent decline in share price.