As Spirax Sarco Engineering continues to grow, its financial performance attracts much attention.
At Ando Money, we explore Spirax Sarco Engineering’s finances to provide a comprehensive look at its revenue sources, profit margins, and more.
If you’re curious about the company’s numbers, including Spirax Sarco Engineering net worth, let’s dive into their latest financial overview for 2024.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Spirax Sarco Engineering plc |
| Full Name | Spirax Sarco Engineering |
| Website | www.spiraxgroup.com |
| Industry | Thermal energy, steam, fluid tech |
| Traded as | FTSE 100 (SPX) |
| ISIN | N/A |
| Founded | 1888 |
| Founders | Henry Spira, Herman Sanders |
| Country/Territory | United Kingdom |
| Headquarters | Cheltenham, UK |
| Chief Executive Officer | Nimesh Patel |
| Number of Employees | 10,000 |
| Market Cap | $6.70 billion (Oct 2024) |
| Total Assets | £2,690.2 million ($3.24B) |
| Total Equity | £1,158.2 million ($1.4B) |
| Revenue | £827.0 million ($997M) |
| Net Income | £91.3 million ($110M) |
What is the Net Worth/Market Cap Of Spirax Sarco Engineering in 2024?
As of October 2024, Spirax Sarco Engineering has a market cap of $6.70 billion, placing it among significant global players.
This figure ranks the company as the world’s 2309th most valuable firm by market cap.
Comparatively, it’s smaller than some of its competitors, yet it’s still a noteworthy player in the industrial sector.
Here are some notable companies related to Spirax Sarco Engineering:
- FTSE 100
- Watson-Marlow
- London Stock Exchange
- Electric Thermal Solutions
- Steam Thermal Solutions
- Thermocoax
For a broader perspective, check out our list of the top companies in the world by value.
Spirax Sarco Engineering Financial Performance Overview
Breakdown of Revenue by Business Divisions
Spirax Sarco operates through three key business divisions: Steam Thermal Solutions (STS), Electric Thermal Solutions (ETS), and Watson-Marlow Fluid Technology.
In the first half of 2024, STS contributed £430.8 million ($519M) in revenue, representing a slight decline of 6% compared to the same period last year.
The ETS division recorded £197.7 million ($238M), up 3%, while Watson-Marlow generated £198.5 million ($239M), remaining stable compared to 2023.
Key Geographic Markets
Geographically, Spirax Sarco draws significant revenue from several global regions:
- EMEA (Europe, Middle East, and Africa) contributed £366.2 million ($441M).
- Asia Pacific accounted for £166.1 million ($200M).
- The Americas generated £294.7 million ($354M).
Despite currency fluctuations and economic challenges, these regions continue to support Spirax Sarco’s growth.
Organic vs. Reported Revenue Growth (H1 2024 vs. H1 2023)
While Spirax Sarco’s total reported revenue decreased by 3% to £827.0 million, the company achieved 1% organic growth, indicating resilience in some segments, particularly in ETS and Watson-Marlow.
The 4% currency headwind had a notable impact, especially on international operations.
Profit Margins by Division
The company’s adjusted operating profit margins showed mixed results:
- Steam Thermal Solutions: 23.5% margin in 2024.
- Electric Thermal Solutions: Increased to 14.7% due to operational improvements.
- Watson-Marlow: Maintained a strong 24.6% margin.
This reflects the diverse strengths and operational focus across divisions.
Impact of Operational Improvements on Profit Margins
Operational improvements in ETS have contributed significantly to increased profitability, particularly through enhanced production at the Chromalox manufacturing facilities.
In contrast, STS faced challenges due to weaker demand in China, affecting its high-margin business there.
Key Investments in Manufacturing and Technology
Spirax Sarco continues to invest in its manufacturing capabilities, with notable expansions in Chromalox’s Utah facility.
The company is also focused on the development of decarbonization solutions and high-temperature heat pumps to support the industrial transition to net-zero carbon emissions.
Capital Expenditure Trends
Capital expenditure in 2024 was £44.1 million ($53M), with a strategic focus on expanding production capabilities.
This is slightly lower than last year, but significant investments are planned for the second half of the year, aiming to support long-term growth.
Impact of Currency Fluctuations on Revenue and Profit
Spirax Sarco’s exposure to multiple currencies, including the euro, dollar, and renminbi, resulted in a 4% reduction in revenue and a 6% hit to operating profit.
This highlights the importance of managing currency risks effectively, particularly for a globally diversified company.
Global Macroeconomic Trends Affecting Industrial Production
In the first half of 2024, global industrial production growth remained low at 1.5%, with some regions experiencing slower recovery.
This macroeconomic environment directly influenced Spirax Sarco’s key markets, especially in China and North America.
Debt Levels and Leverage Ratio Trends
The company’s net debt stood at £718.3 million ($867M) as of June 2024, with a leverage ratio of 1.9x, which is considered healthy for a company of its size.
This enables Spirax Sarco to maintain flexibility in its financial operations, including further investments and shareholder returns.
FAQs About Spirax Sarco Engineering
How Does Spirax Sarco Generate Most of Its Revenue?
The company primarily generates revenue from three divisions: Steam Thermal Solutions, Electric Thermal Solutions, and Watson-Marlow Fluid Technology.
What Is Spirax Sarco’s Largest Market?
Europe, Middle East, and Africa (EMEA) is the largest market for Spirax Sarco, contributing £366.2 million ($441M) in the first half of 2024. Other significant regions include Asia Pacific and The Americas.
What Are Spirax Sarco’s Main Profit Drivers?
The company’s profit drivers include its high-margin Watson-Marlow and Steam Thermal Solutions divisions.
Operational improvements in Electric Thermal Solutions have also contributed to increased profitability.
What Investments Has Spirax Sarco Made in 2024?
In 2024, the company has invested £44.1 million ($53M) in expanding manufacturing capabilities, particularly at Chromalox’s Utah facility.
How Does Spirax Sarco Manage Currency Risk?
With significant operations in various countries, it is exposed to currency fluctuations.
In 2024, the company faced a 4% reduction in revenue due to currency headwinds, impacting profits by 6%.
Conclusion
I hope this deep dive into Spirax Sarco Engineering‘s financial performance for 2024 has been insightful.
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