**Summary of Stelrad Group PLCs Final Results for the Year Ended 31 December 2025**
Stelrad Group PLC, a leading manufacturer and distributor of steel panel and designer radiators, announced its audited financial results for 2025, highlighting progress in adjusted operating profit despite challenging market conditions.
**Financial Highlights**
**Revenue** Declined by 3.8% to £279.6 million due to economic uncertainty in core markets (UK, Europe), partially offset by growth in Turkey & International.
**Adjusted Operating Profit** Increased by 3.0% to £32.5 million, driven by margin management and strategic initiatives.
**Statutory Operating Profit** Fell to £17.5 million due to £14.9 million in exceptional items, including a non-cash impairment charge on Radiators SpA assets and restructuring costs.
**Profit for the Year** Significantly dropped to £0.8 million from £16.5 million in 2024, primarily due to exceptional items.
**Adjusted Earnings per Share** Remained stable at 13.08 pence.
**Free Cash Flow** Increased by 114.6% to £20.5 million, driven by improved working capital and reduced interest costs.
**Dividend** Recommended final dividend increased by 5% to 5.05 pence per share.
**Operational and Strategic Progress**
**Market Leadership** Maintained leadership in six core territories with a top-three position in three others.
**Premiumisation** Achieved a record 6.4% premium steel panel mix of total steel panel volume.
**Decarbonisation** 33% annual growth in high-output conventional and electric radiators since 2022, positioning for decarbonisation trends.
**Operational Efficiency** Eighth consecutive year of growth in contribution per radiator to £20.50, nearing the medium-term target of £21.
**Restructuring** Completed restructuring in Turkish and Danish facilities, with further margin enhancement expected.
**Outlook**
**Current Trading** In line with management expectations, with stable but subdued market demand expected to continue in the first half of 2026.
**Future Prospects** Confident in making further progress, leveraging competitive advantages, market leadership, and strategic initiatives.
**Market Recovery** Uncertainty around timing, but well-positioned to benefit from long-term structural growth drivers and a market recovery.
**Management Commentary**
CEO Trevor Harvey emphasized the Groups ability to deliver adjusted operating profit growth through the market cycle, improve operations, and position for future growth. The Board remains confident in delivering further progress in 2026, supported by operational excellence, competitive advantages, and market leadership.
**Key Metrics**
**Return on Capital Employed** Increased to 30.1% from 27.1%.
**Net Debt** Reduced to £51.2 million from £59.7 million.
**On-Time In-Full Delivery** Maintained at 98% in the UK.
Stelrad Group PLC continues to focus on operational excellence, strategic initiatives, and market leadership to navigate challenging conditions and capitalize on future growth opportunities.
| Metric | 2025 (£m) | 2024 (£m) | Movement (%) |
|---|---|---|---|
| Revenue | 279.6 | 290.6 | (3.8) |
| Operating Profit | 17.5 | 31.4 | (44.3) |
| Profit for the Year | 0.8 | 16.5 | (94.9) |
| Adjusted Operating Profit | 32.5 | 31.5 | 3.0 |
| Free Cash Flow | 20.5 | 9.6 | 114.6 |
| Net Debt before Lease Liabilities | 51.2 | 59.7 | (14.3) |
| Return on Capital Employed (%) | 30.1 | 27.1 | 3.0 ppts |
Debt Comparison
| Metric | 2025 (£m) | 2024 (£m) | Movement (%) |
|---|---|---|---|
| Net Debt before Lease Liabilities | 51.2 | 59.7 | (14.3) |
| Debt Leverage Ratio before Lease Liabilities (x) | 1.16 | 1.37 | (15.3) |