LSE$SPXSF

Spirax-Sarco Engineering PLC · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Spirax-Sarco delivered stable margins and organic growth in Q4 2024 despite challenging market conditions.

Spirax-Sarco reported Q4 2024 revenue of £1.67 billion, a slight decrease from the previous year. Adjusted operating profit stood at £333.9 million, with an adjusted operating margin of 20.1%. Organic growth remained strong across all business segments, particularly in ETS and WMFTS. The company also improved cash conversion, reduced leverage, and took strategic restructuring actions to simplify operations and enhance efficiency.

  • Revenue slightly declined by 1% year-over-year to £1.67 billion.
  • Adjusted operating profit stood at £333.9 million, with a 20.1% margin.
  • ETS and WMFTS segments drove organic growth with double-digit improvements.
  • Operational efficiencies and restructuring efforts resulted in cost savings.

Headline financials

Total Revenue

£2.09B

No prior period
EPS (adj)

£3.59

No prior period
Gross Margin

20.1%

No prior period
Adjusted Tax Rate

26.5%

No prior period
Free Cash Flow

173.2M

No prior period
Weighted Avg Shares

73.7M

No prior period
Net Income

£361M

No prior period
Operating Income

£382M

No prior period
Cash & Equivalents

£747M

No prior period
Total Assets

£12.4B

No prior period

Revenue & EPS history

Spirax-Sarco · Revenue · Quarterly

£2.09B

Q3 2024

Revenue by segment

Spirax-Sarco · £1.67B total across 3 segments · Q3 2024

  • Steam Specialties
    £868M—
  • Electric Thermal Solutions
    £405M—
  • Watson-Marlow Fluid Technology
    £393M—

Forward guidance

Spirax-Sarco expects stable organic revenue growth, continued margin improvements, and restructuring benefits in 2025.

Tailwinds

  • Mid-single-digit organic revenue growth projected for 2025.
  • Restructuring actions expected to generate £35 million in annual cost savings.
  • Continued investment in digital solutions and product innovation.
  • ETS and WMFTS segments expected to maintain growth momentum.
  • Focus on efficiency improvements and enhanced cash conversion.

Headwinds

  • Macroeconomic uncertainties may impact industrial production growth.
  • Higher finance costs due to debt refinancing at the end of 2023.
  • China's market volatility remains a challenge for STS segment.
  • One-off restructuring costs expected to be £35 million in cash and £5 million in non-cash expenses.
  • Potential impact of exchange rate fluctuations on reported earnings.

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