Shares in Spirax Group rose on Wednesday after the FTSE 100 engineering company said sales growth and profit margins had improved in recent months and reaffirmed its full-year guidance.

Spirax was up 2.86% at 7,600p in early trade on 11 November, according to Sharecast, as the wider FTSE 100 rose 0.76% to 10,832.78 by 0840 GMT. The rise followed a trading update covering the four months to 31 October 2026, published by the company on Wednesday morning.

Group organic sales growth and adjusted operating profit margin for the ten months to 31 October were in line with expectations and ahead of the first half, the company said, with all three of its divisions improving on their first-half performance.

All three divisions improve on the first half

In Steam Thermal Solutions, the division that supplies steam systems to industry, organic sales growth in the four months to October was higher than in the first half, supported by shipments from a larger order book and continuing order momentum. Sales in China, which accounted for about 15% of the division's sales in 2025, are on track to be in line with 2025 for the full year, with continuing growth in maintenance, repair and operations work and stabilising large project sales. The company said the second-half margin in the division will be ahead of the first half, underpinning a full-year margin broadly in line with 2025.

Electric Thermal Solutions, which supplies electric heating systems, continued the strong organic sales growth seen in the first half, with strong order intake in process heating and heat trace work across all sectors. Growth in equipment heating benefited from higher demand from semiconductor manufacturers. Excluding sales to semiconductor customers, which accounted for about 13% of the division's sales in 2025, organic sales growth remains above the company's mid-single-digit medium-term target. Spirax said manufacturing efficiencies and operational gearing will support a higher second-half margin for the division compared with the first half.

Watson-Marlow Fluid Technology Solutions, which supplies pumps and fluid systems mainly to the pharmaceutical and biotechnology industries, also improved. Organic sales growth in Biopharm was higher in the four months to October than in the first half, with orders remaining ahead of sales, while the division also saw strong growth in end-user and consumables sales and continuing strong organic sales growth in process industries, supported by market share gains. The company expects higher second-half organic sales growth in the division to drive a second-half margin slightly ahead of the first half.

Debt falls as cash generation strengthens

Spirax also reported a stronger financial position. Net borrowings excluding leases stood at £541.6 million at 31 October, down from £618.2 million at 30 June, with the group's net debt to EBITDA ratio improving to 1.3 times from 1.6 times.

The company said sales and margin momentum reinforce its confidence in delivering full-year guidance. It continues to expect mid-single-digit organic growth in group revenues and a group adjusted operating profit margin higher than the 2025 margin of 20.0%. It also expects cash conversion of around 90% for the full year.

The update comes against a difficult backdrop for industrial companies. Spirax noted ongoing weakness in global industrial production and softer demand for large projects, with uncertainty around tariffs continuing to weigh on business confidence. Even so, the company said its strategy of driving its own growth, rather than relying on the wider industrial cycle, continued to deliver.

What investors will watch next

Investors welcomed the confirmation that guidance remains intact, particularly after a year in which many industrial groups have cut forecasts. The fall in net debt and the improved leverage ratio also give the company more room to invest or to return cash to shareholders.

The next test will be the full-year results, when investors will look for the promised margin improvement to come through in reported numbers, and for evidence that order momentum in electric heating and biopharmaceuticals can be sustained into 2027. For now, the market's verdict was clear: a trading update with no downgrade, improving margins and a stronger balance sheet was enough to send the shares higher on a broadly positive morning for London stocks.