Stelrad Group (LON:SRAD) Posts Earnings Results

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

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 Stock Down 3.2%

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

Wall Street Analyst Weigh In

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

About Stelrad Group

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.