Spirax Group PLC SPX

Morningstar Rating

We See a Clear Path for Spirax To Increase Its Operating Margin Above 22%

Business Strategy and Outlook

Spirax Group has embedded its products and highly qualified engineers, who act as its salesforce, in customers’ industrial and commercial processes. Its large installed base of equipment creates recurring revenue through repair and maintenance as well as an upselling opportunity. Nearly half of the group’s sales are from recurring maintenance, with an average invoice value of GBP 1,500, and a further 35% from small improvement projects with short payback periods.

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