Stelrad Group (LON:SRAD) Issues Earnings Results

Stelrad Group (LON:SRAD) released its earnings results on Friday. The company reported GBX 13.08 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Stelrad Group had a net margin of 1.78% and a return on equity of 9.27%.

Here are the key takeaways from Stelrad Group’s conference call:

• Adjusted operating profit rose 3% to £32.5m and margin improved 0.8ppt to 11.6%, while contribution per radiator increased to £20.50, showing operational leverage despite weaker volumes.
• Revenue fell 3.8% and sales volumes were down 4.3% as high interest rates and inflation suppressed RMI and new‑build activity, and management expects subdued end‑markets into at least H1 2026.
• The group recognised £14.9m of exceptional items (≈£12.6m impairments) mainly at DL Radiators S.p.A. and will exit a low‑margin contract (c.175k radiators, ~€13–14m revenue), which reduces near‑term volumes but is intended to improve future margins and focus the business on higher‑value ranges.
• Net debt/EBITDA fell to 1.16x, operating and free cash flow strengthened, and the board proposed a 5% increase in the final dividend, giving the group greater capital allocation optionality.
• Product premiumization and decarbonization trends are accelerating—premium panel mix hit a record 6.4% and electric/high‑output radiator volumes have grown materially—positioning Stelrad to capture higher‑margin, long‑term demand.

Stelrad Group Trading Down 3.2%

Shares of LON:SRAD traded down GBX 4.30 during midday trading on Friday, reaching GBX 129.20. The company’s stock had a trading volume of 69,692 shares, compared to its average volume of 47,752. The firm has a market cap of £164.54 million, a price-to-earnings ratio of 33.13 and a beta of 0.25. The business has a 50 day moving average price of GBX 138.12 and a 200 day moving average price of GBX 150.76. Stelrad Group has a 1 year low of GBX 124.32 and a 1 year high of GBX 180. The company has a quick ratio of 0.76, a current ratio of 1.90 and a debt-to-equity ratio of 175.80.

Wall Street Analyst Weigh In

Separately, Berenberg Bank cut their price objective on shares of Stelrad Group from GBX 200 to GBX 190 and set a “buy” rating for the company in a research report on Monday, November 17th. One equities research analyst has rated the stock with a Buy rating, According to data from MarketBeat.com, Stelrad Group currently has an average rating of “Buy” and a consensus target price of GBX 190.

Stelrad Group Company Profile

Stelrad is a leading specialist manufacturer and distributor of steel panel radiators in the UK, Europe and Turkey, selling an extensive range of standard and premium steel panel radiators, low surface temperature radiators, towel warmers, decorative steel tubular radiators and other steel “column” radiators.