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Dec 31, 2024
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Spirax-Sarco Q3 2024 Earnings Report
Spirax-Sarco delivered stable margins and organic growth in Q4 2024 despite challenging market conditions.
Key Takeaways
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.
Spirax-Sarco
Spirax-Sarco
Spirax-Sarco Revenue by Segment
Revenue by Segment
Steam Specialties Revenue
CapyFin.comElectric Thermal Solutions Revenue
CapyFin.comWatson-Marlow Fluid Technology Revenue
CapyFin.com Forward Guidance
Spirax-Sarco expects stable organic revenue growth, continued margin improvements, and restructuring benefits in 2025.
Positive Outlook
- 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.
Challenges Ahead
- 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.