The Newcastle firm has its main manufacturing base in Yorkshire, as well as significant operations overseas
Inside Stelrad Group’s Mexborough facility.(Image: Shaun Flannery Photography Ltd)
Radiator company Stelrad saw its operating profit almost halve as revenues fell and it incurred costs in some of its overseas operations.
The Newcastle company, which has its main manufacturing base in South Yorkshire, has released interim full-year results for 2025. They show that revenue fell slightly to £279.6m but operating profit went down by 44% to £17.5m.
But Stelrad said that it was well-placed for growth and that its adjusted operating profit increased slightly to £32.5m. The company recognised exceptional costs of £14.9m relating to restructuring in its Turkish and Danish facilities and an impairment charge on the assets of Radiators SpA in Italy.
The company said it was driving growth in its higher-margin products and continuing to make efficiencies. But continued economic uncertainty in core territories of UK and Ireland and mainline Europe resulted in a 3.8% decline in overall revenues, it said.
Stelrad said it had successfully renewed its £100m loan facility with existing banking partners last December to reduce future borrowing costs. It increased its recommended dividend to 5.05p, saying that was “reflecting the board’s ongoing confidence in Stelrad’s future prospects, the strength of the group’s balance sheet and cash conversion.”
Chief executive officer Trevor Harvey said: “2025 demonstrated once again our ability to deliver adjusted operating profit growth through the market cycle while continuously improving our operations and positioning as we optimise our business for further progress. There remains a level of uncertainty around the timing of a wider market recovery, however, we remain confident in the opportunities that a market recovery offers for a stronger, simplified and more operationally efficient Stelrad.
Trevor Harvey, CEO of Stelrad(Image: Stelrad)
“Our leadership positioning across the range of markets where we operate provides us with a platform from which to build and positions the group well to continue to drive the adoption of higher-margin, value-added products, including increasing the penetration of premium panel and higher heat output ranges in key markets.
“The board remains confident in delivering further progress during 2026. Our operational excellence initiatives, underpinned by our competitive advantages and market positioning, mean that Stelrad remains well-placed to outperform its peers in the near term and benefit from any medium-term market recovery.”
In its statement to the Stock Exchange, Stelrad said that it had market leadership in six of the 10 countries in which it operated and was seeing significant growth in products that reflected the transition to net zero. It said current trading was in line with expectations but that it expected market conditions to remain “subdued” this year.
Stelrad, which dates back to the 1930s, has its headquarters in Newcastle with manufacturing and other facilities in Mexborough, South Yorkshire, and in Turkey, Italy, the Netherlands, Denmark and Poland. It listed on the London Stock Exchange in 2021.
