Spirax Group jumps 15% after forecasting accelerated second half growth

Shares in British manufacturing company Spirax Group surged over 15% on Tuesday following the firm’s announcement that it expects organic sales growth to accelerate significantly in the second half of 2025.

The FTSE-listed engineering specialist, which provides steam system solutions and industrial pumps, reported first-half results that met market expectations despite challenging macroeconomic conditions.

The company achieved organic sales growth of 3% in the opening six months, providing a platform for the anticipated improvement in the latter part of the year.

Spirax highlighted improved cash conversion and cost control measures that enabled a 3% increase in its interim dividend, demonstrating the company’s commitment to shareholder returns even amid challenging trading conditions. The results showcased the resilience of the business model and management’s ability to navigate through economic headwinds while maintaining operational efficiency.

The strong market response reflects investor confidence in the company’s forward-looking guidance and its positioning within industrial markets that are expected to benefit from ongoing infrastructure investment and energy transition initiatives. The engineering sector has faced headwinds from supply chain disruptions and economic uncertainty, making Spirax’s performance particularly noteworthy.

The company’s ability to deliver growth acceleration in the second half will be crucial for validating management’s optimistic outlook and sustaining the current share price momentum. Market analysts will closely monitor upcoming quarterly updates to assess progress against the upgraded growth trajectory.