Spirax (LSE: SPX) shares soared over 15% after first-half results beat expectations and the company signalled faster organic growth ahead.
Pretax profit fell 30% to £87.9 million from £124.8 million a year earlier. That headline drop masked a stronger underlying performance. Adjusted operating profit slipped 0.9% to £158.8 million but rose 7% on an organic basis, topping the £152 million consensus.
Revenue dipped 0.6% to £822.2 million but also beat forecasts, with organic sales up 3%. Electric Thermal Solutions led the growth with a 10% organic rise, while Watson-Marlow Fluid Technology Solutions added 2%. Steam Thermal Solutions held level despite weaker demand for large projects.
The restructuring programme remains on track to deliver around £35 million in annual savings, with half expected this year.
Spirax expects organic sales growth to accelerate in the second half, supported by strong order books in Steam Thermal and Watson-Marlow, alongside continued momentum in Electric Thermal.
Margins are forecast to improve as higher-margin Biopharm and semiconductor sales feed through and restructuring benefits land.