The radiator maker has been on a cost cutting and margin improvement exercise in recent months
Stelrad Radiators’ Mexborough plant.(Image: Shaun Flannery Photography Ltd)
Radiator manufacturer Stelrad says it will report growth in adjusted operating profit for 2025, despite a fall in volumes.
The Newcastle-based firm, which has its main factory in Mexxborough, South Yorkshire, gave a trading update ahead of full year results expected in March. It said revenue for the year will be about £280m following a small uplift in volumes in the second half of the year, although overall volumes fell 4% year-on-year.
Stelrad said that while there was still uncertainty about recovery in the wider market, with repair, maintenance and new build activity subdued, that recent cost saving activity had given it a good platform for growth in 2026. The London Stock Exchange-listed business has been focused on “margin management initiatives” and tackling costs, including the restructuring of its Turkish arm.
It said the efforts have brought an improvement in “contribution per radiator” – a key performance indicator – for the eighth consecutive year. That is expected to deliver year-on-year about 3% growth in the group’s adjusted operating profit to £32.5m, up from £31.5m.
Investors were also told that strong cash management had helped net debt before lease liabilities to reduce to £51.2m with an improved leverage ratio of 1.16x. And in December 2025, the group renewed a £100m loan facility which it said would reduce future borrowing costs.
Inside Stelrad Group’s Mexborough facility.(Image: Shaun Flannery Photography Ltd)
Stelrad added: “We continue to assess opportunities to improve the group’s competitive position and operational efficiency. Prior to the year-end, and following the earlier restructuring of our Turkish operations, we restructured our Danish business which will further enhance future operational margins while incurring an exceptional expense of c.£2.7m in the second half of 2025.”
Trevor Harvey, chief executive of Stelrad, said: “During 2025, Stelrad continued to demonstrate and enhance its operational excellence, underpinned by our core competitive advantages of a flexible, low-cost manufacturing footprint, outstanding customer service and unmatched product availability. These allowed us to continue to deliver growth in operating profits and margins, despite the subdued market environment.
“While persisting market headwinds remain frustrating, our performance in the last year further evidences Stelrad’s ability to continue to deliver against our strategy irrespective of market conditions. The ongoing execution of our strategy underpins my confidence that Stelrad is well-placed to deliver sustained growth and, longer term, is incredibly well positioned to benefit from the eventual market recovery.”
This year Stelrad marks its 90th anniversary having started in 1936. In recent years the business has launched a range of green compact radiators that are designed to reduce emissions with use of green steel and reduced plastic packaging.