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Reinforcing our leadership Stelrad Group plc Results for the six months ended 30 June 2026 Stelrad® Group plc
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RESULTS FOR THE PERIOD Stelrad Group plc 2 Agenda • Overview • Financial review • Business review • Summary and outlook • Q&A Leigh Wilcox Chief Financial Officer Trevor Harvey Chief Executive Officer
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Overview
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OVERVIEW Stelrad Group plc 4 Stelrad is Europe’s leading radiator manufacturer Our core purpose is helping to heat homes sustainably (1) Source: BRG Building Solutions, Europe excluding Russia and Belarus 1,200 people 500+ customers 40+ countries #1 in hydronic heat emitters • 24.0% steel panel market share (1) • Stelrad is Europe’s #1 brand (1) 5 market leading brands UK & Ireland £62.4m Europe £58.2m Turkey & International £3.4m H1 2026 Group revenue £124.0m Group included in the FTSE All Share index (Climate Control sub sector)
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OVERVIEW Stelrad Group plc 5 Operational delivery, profit growth and margin expansion • The commercial and operational initiatives undertaken in 2025 have further optimised our cost base and driven progress in 2026, despite challenging market conditions • Further progress in adjusted operating profit to £16.7m, a 4.9% increase year-on-year, with adjusted operating profit margin increasing 1.8 ppts to 13.5% • Adjusted earnings per share rose by 16% supported by reduced interest costs • Growth in contribution per radiator to £24.32 (H1 25: £20.33), benefitting from operational control initiatives, the exit from a loss-making contract at the end of 2025 and reduced volumes in lower margin territories and market sectors • Contribution per radiator is expected to move towards our sustainable medium-term target of >£21, reflecting our intention to grow volume in select territories, leveraged by our cost leadership • Revenue declined 9.1% to £124m, including the impact of the previously announced exit from a loss-making contract at the end of 2025 (£5.0m revenue impact) • Market leadership in five of Stelrad’s ten core territories, with a top three position in four of the remaining five Flexible, lowest-cost manufacturing Leading customer service and product availability Leading competitive position
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Financial review
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FINANCIAL REVIEW HIGHLIGHTS Stelrad Group plc 7 Strong margin management and balance sheet control £124.0m Revenue ↓ 9.1% (H1 25: £136.5m) 14.6% decline in sales volume partially offset by selling price increases £16.7m Adjusted operating profit ↑ 4.9% (H1 25: £15.9m) Successful delivery of our commercial and operational initiatives 13.5% Adjusted operating profit % ↑ 1.8 ppts (H1 25: 11.7%) Strong operating performance despite decline in sales volumes 29.0% ROCE % (LTM) ↑ 2.1 ppts (H1 25: 26.9%) Improved operating performance and lower fixed asset values 3.19p Dividend ↑ 5.0% (H1 25: 3.04p) Reflects balance sheet strength and confidence in future growth prospects and cash generation 102.2% Adjusted operating cash conversion (LTM) Strong cash flow conversion on an LTM basis 1.29x Leverage (before lease liabilities) ↓ 0.19x (H1 25: 1.48x) Balance sheet control and balanced approach to capital allocation; working capital at a seasonal high ↑ 27.0 ppts (H1 25: 75.2%)
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Stelrad Group plc 8 • Group revenue was negatively impacted by a continued reduction in market demand during 2026 and the exit from a loss-making contract at the end of 2025 (£5.0m revenue impact). • Group adjusted operating profit increased by 4.9% to £16.7m, benefitting from the successful delivery of our commercial and operational initiatives, which have further enhanced profitability and offset market weakness. • Adjusted operating profit is stated after exceptional items of £1.0m, incurred to right size the business in light of reduced market demand. • Adjusted earnings per share rose by 16.0% to 7.43p supported by adjusted operating profit growth and reduced interest costs. • 5% growth in dividends per share, reflecting the Board’s confidence in the Group’s prospects and balance sheet. £124.0m Revenue Strong operational performance offsetting challenging market conditions FINANCIAL REVIEW £16.7m Adjusted operating profit 7.43p Adjusted EPS 3.19p Interim dividend per share Highlights 8.09 150.1 157.0 143.1 136.5 124.0 H1 22 H1 23 H1 24 H1 25 H1 26 19.0 14.0 15.7 15.9 16.7 H1 22 H1 23 H1 24 H1 25 H1 26 10.95 6.36 6.34 6.41 7.43 H1 22 H1 23 H1 24 H1 25 H1 26 2.92 2.92 2.98 3.04 3.19 H1 22 H1 23 H1 24 H1 25 H1 26
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Stelrad Group plc 9 1,960k units Radiator volumes sold Contribution per radiator benefitting from sales mix impact and margin management initiatives FINANCIAL REVIEW 6.2% Premium panel % of steel panel volumes £24.32 Contribution per radiator • Total sales volume reduced by 14.6% year-on-year as a result of ongoing challenges in RMI and new build markets, the exit from a loss-making contract at the end of 2025 (impact 88k units) and the commercial decision to reduce sales to the Turkish market (impact 126k units). • The proportion of premium panel sales to total steel panel volume increased by 0.1 ppts to 6.2% year-on-year. • Contribution per radiator has increased significantly to £24.32, benefitting from the continued operational control and margin management initiatives, the exit from a loss-making contract and crucially due to subdued volumes in some lower margin territories and market sectors. • Expect contribution per radiator to move towards our sustainable medium-term target of >£21, reflecting our intention to grow volume in select territories, leveraged by our cost leadership. Highlights 5.9% 6.4% 6.3% 6.1% 6.2% H1 22 H1 23 H1 24 H1 25 H1 26 2,710 2,622 2,412 2,296 1,960 H1 22 H1 23 H1 24 H1 25 H1 26 16.06 17.66 20.48 20.33 24.32 H1 22 H1 23 H1 24 H1 25 H1 26
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UK & Ireland • 6.6% decrease in sales volumes • Partially offset by selling price increases and market mix benefits Europe • 14.4% decrease in sales volumes • Partially offset by: – Lower average Euro exchange rates in the period – The mix benefit of the exit from a loss-making contract – The mix benefit of subdued volumes in the lower-value French market • Revenue impact of c. £5.0 million from the exit from a loss-making contract Turkey & International • Lower sales volumes • Commercial strategy to reduce sales volumes in the period in this lower margin territory REVENUE Stelrad Group plc 10 Commercial strategy and mix benefits partially offset market led volume decline Revenue by geographical market H1 2026 £m H1 2026 % of total H1 2025 £m H1 2025 % of total Movement % UK & Ireland 62.4 50.4 65.1 47.7 (4.0) Europe 58.2 46.9 62.9 46.1 (7.4) Turkey & International 3.4 2.7 8.5 6.2 (60.6) Total 124.0 100.0 136.5 100.0 (9.1)
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ADJUSTED OPERATING PROFIT Stelrad Group plc 11 Cost and operational initiatives driving profit improvements Adjusted operating profit by geographical market H1 2026 £m H1 2025 £m Movement £m Movement % UK & Ireland 14.1 15.0 (0.9) (6.3) Europe 6.3 3.6 2.7 76.3 Turkey & International 0.2 0.7 (0.5) (65.6) Central costs (3.9) (3.4) (0.5) (14.5) Total 16.7 15.9 0.8 4.9 Total as percentage of revenue 13.5% 11.7% UK & Ireland • Revenue reduction • Lower volumes squeeze operating profits despite contribution per radiator improvements Europe • Exit from a loss-making contract at the end of 2025 • Subdued volumes in the low margin French market • Positive trends in profitable markets such as the Netherlands and Poland Turkey & International • Volume reductions linked to commercial strategy Central costs • Inflationary cost increases
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CASH FLOW Stelrad Group plc 12 Leverage reduction year-on-year Cash flow and net debt • Adjusted operating cash flow conversion of 43.9% (H1 25: 60.5 %), expected to improve in half two due to the seasonality of working capital. With strong LTM operating cash flow conversion of 102.2% (H1 2025: 75.2%). • Investments in working capital, higher tax paid and increase in dividend, partially offset by lower interest payments. • Leverage 1.29 x (H1 2025: 1.48 x; 2025: 1.16 x) demonstrating a disciplined and balanced approach to capital allocation and balance sheet prudence. £m Opening net debt – 1 January 2026 (58.7) Free cash flow (0.2) Dividends (6.4) Lease movements 0.8 Foreign exchange differences 0.4 Closing net debt – 30 June 2026 (64.1) Less finance leases 6.6 Closing net debt before finance leases – 30 June 2026 (57.5) Leverage 1.29 x H1 2026 £m H1 2025 £m Movement £m EBITDA 22.4 21.8 0.6 Exceptional items (1.0) - (1.0) Gain on disposal of property, plant and equipment (0.1) (0.1) - Share-based payments 0.4 0.6 (0.2) Working capital (11.0) (9.0) (2.0) Net capital expenditure (3.5) (3.7) 0.2 Cash flow from operations 7.2 9.6 (2.4) Income tax paid (5.5) (4.8) (0.7) Net interest paid (1.9) (3.0) 1.1 Free cash flow (0.2) 1.8 (2.0)
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BALANCE SHEET, TAXATION, DIVIDENDS AND ROCE Stelrad Group plc 13 Group credit facilities • Group revolving credit facility: £50.7m • Group term loan facility: €28.3m • Loans refinanced in 2025 with margin benefit; maturity date of December 2028 with a two- year extension option • £25.3m undrawn at period end • Cash of £17.6m at period end Taxation • Effective tax rate 33.1% (H1 25: 33.0%) on an adjusted basis • Adjusted effective tax rate remains consistent year-on-year Return on capital employed • LTM ROCE % increased to 29.0% (H1 25: 26.9%) • Favourable adjusted operating profit performance and lower fixed asset balances year-on-year Dividends • Interim dividend of 3.19 pence, 5% increase on 2025 • In line with progressive dividend policy and reflecting confidence in future prospects and cash generation, despite trading headwinds Balance sheet, taxation, dividends and ROCE
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TECHNICAL GUIDANCE Stelrad Group plc 14 FY26 Technical guidance • Steel prices expected to rise in H2 2026 • Other key input prices are expected to remain stable in 2026, remaining mindful of recent global events • Group tax rate expected to be in line with expectations at c.33% with some non- cash deferred tax movements in Turkey possible due to the relationship between inflation and currency devaluation • Currency dynamics remain unchanged with the Group’s USD exposure strongly hedged to the Euro • Capital expenditure and working capital investment continue to be in line with expectations • Leverage, based on net debt before lease liabilities, is expected to fall during H2 as working capital reduces
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Business Review
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BUSINESS REVIEW Stelrad Group plc 16 As #1 player with a clear strategy, Stelrad is well positioned for sustainable, profitable growth Key structural growth drivers Attractive market opportunity Key medium-term targets Clear, consistent strategic objectives Growing market share Improving product mix Optimising routes to market Positioning effectively for decarbonisation 1 Sustainable competitive advantages 261m homes in Europe with central heating 92% have hydronic heating systems 1.4bn billion hydronic heat emitters currently installed 65% steel panel radiator volume share of European hydronic heat emitter market in 2024 Significant long-term replacement market regardless of heat source Replacement market recovery Increasing premiumisation Drive for decarbonisation VOLUME DRIVER MARGIN DRIVER MARGIN AND DEMAND DRIVER Flexible, lowest-cost manufacturing Leading customer service and product availability Leading competitive position 2 3 4 1–2% market share improvement >£21.0 contribution per radiator 13% operating profit margin >90% operating cash flow conversion >30% return on capital employed Source: BRG Building Solutions, Europe excluding Russia and Belarus
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BUSINESS REVIEW Stelrad Group plc 17 Stelrad’s #1 position is driven by cost leadership and outstanding customer service • c.75% of steel panel manufacturing now relocated to low-cost locations • Annualised optimal production capacity of c.7m radiators • Industry-leading UK on-time-in-full delivery rate of 98.5% (H1 25: 99%) • These foundations underpin Stelrad’s clear European market leadership position, with 24.0% market share in 2025 • Minor 2025 share reduction was driven by market mix across the countries we serve, notably the UK, but Stelrad retains a 3.9 ppts lead over its nearest competitor. Source: BRG Building Solutions May 2026: 22 European countries for which 2025 data is available (excluding Russia), representing 97% of 2024 market volume reported 21.1% 22.8% 24.5% 24.4% 24.0% 19.7% 18.3% 17.7% 19.5% 20.1% 12.2% 14.5% 15.2% 14.8% 14.6% 5.4% 4.8% 5.4% 5.3% 5.7% 6.7% 5.2% 4.3% 4.4% 4.8% 0% 5% 10% 15% 20% 25% 30% 2021 2022 2023 2024 2025 Steel panel radiators Top 5 manufacturers' share evolution STELRAD PURMO ELGINKAN VAILLANT MIDEA
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BUSINESS REVIEW Stelrad Group plc 18 Geographically diverse presence provides opportunities 27% 49% 24% Market volume mix 2025 UK & Ireland Europe Turkiye • Stelrad enjoys a strong presence across all significant segments and countries of the European steel panel radiator market • Dominant market position in UK & Ireland • Actively reviewing the opportunities in the larger European segment Source: BRG Building Solutions May 2026: 22 European countries for which 2025 data is available (excluding Russia), representing 97% of 2024 market volume reported 57% 35% 8% Stelrad volume mix 2025 UK & Ireland Europe Turkiye
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BUSINESS REVIEW Stelrad Group plc 19 In 2025, Stelrad consolidated market leadership with share growth outside the UK Source: BRG Building Solutions May 2026: 22 European countries for which 2025 data is available (excluding Russia), representing 97% of 2024 market volume reported 48.9% 47.6% 33.7% 33.2% 49.8% 49.2% 43.1% 33.1% 53.8% 49.6% 44.1% 35.9% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% Denmark Netherlands Belgium France 2025 2024 2023 2025 Market Market Volume ‘000 units Stelrad Share Stelrad Position UK 4,500 51.3% 1# Turkey 4,200 8.3% 4# Germany 1,940 13.7% 3# France 1,262 35.9% 1# Poland 1,191 10.2% 2# Belgium 390 44.1% 1# Sweden 380 15.9% 2# Netherlands 344 49.6% 1# Ireland 250 34.9% 2# Denmark 203 51.4% 1# Core 10 14,660 27.9% 1# Core 10 markets Share growth highlights
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DRIVING PRODUCT MIX IMPROVEMENT - PREMIUMISATION Stelrad Group plc 20 Premiumisation represents a clear opportunity for profitable growth when markets recover • At the heart of Stelrad’s premiumisation strategy are three pillars: • Leverage Stelrad trade strengths • Boost Stelrad consumer appeal • Optimise distribution • Designer radiator volume continues to be impacted by reduced RMI spend • H1 2026, Stelrad’s premium panel mix was in line with record year 2025, at 6.2% • Versus H1 2025, total designer mix improved by 1.2 ppts to 13.8% 6.2% 13.2% 6.1% 12.6% 6.2% 13.8% 0% 2% 4% 6% 8% 10% 12% 14% 16% Premium mix of steel panel Total designer mix Protecting and improving our product mix 2024 H1 2025 H1 2026 H1
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DRIVING PRODUCT MIX IMPROVEMENT - DECARBONISATION Stelrad Group plc 21 Leveraging Stelrad’s market access is delivering growth in electric/hybrid radiators • Stelrad also has a clear strategy for decarbonised heating systems: • Promote high output conventional radiators • Develop hybrid products for low temperature systems • Introduce electric ranges into core markets • In the core markets of the Netherlands, Belgium, UK and Germany, H1 2026 electric and hybrid radiator volume: • Increased by 58% vs 2024 • Increased by 42% CAGR since 2024 28% 58% 2024 H1 2025 H1 2026 H1 Electric and hybrid radiator volume Netherlands, Belgium, UK & Germany 42% CAGR
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Stelrad Group plc 22 Pleasing progress against sustainable medium-term targets MEDIUM-TERM TARGETS Market share improvement (Data released annually) 1–2% 2025: stable Continued market leadership Contribution per radiator >£21.0 H1 26: £24.32 (H1 25: £20.33) Benefitting from the exit from a loss-making contract at the end of 2025 and reduced volumes in some lower margin territories. Operating profit margin 13% H1 26: 13.5% (H1 25: 11.7%) 1.8 ppts improvement in period, despite volume reduction Adjusted operating cash flow conversion >90% H1 26 LTM: 102% (H1 25 LTM: 75%) Strong progress, exceeding target Return on capital employed % >30% H1 26: 29.0% (H1 25: 26.9%) 2.1 ppts improvement in the period, working capital is higher at the half year Medium-term target Performance Commentary
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Summary and outlook
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SUMMARY AND OUTLOOK Stelrad Group plc 24 Reinforcing our leadership Well positioned for growth • Commercial and operational initiatives undertaken in 2025 have further optimised our cost base and driven progress in 2026 • OTIF delivery was 98.5% in the UK & Ireland, a key strength and differentiator for Stelrad • Clear leader in steel panel radiator market – 24% combined 2025 share, 3.9 ppts lead over nearest competitors • Financial strength and geographic diversity provide strong platform for targeted market share gains Outlook • Proactive margin management and cost discipline positions Stelrad for further strong delivery • Closely monitoring cost inflation and ongoing weakness in our end markets • Trading in H2 to date has been in line with expectations - outlook for FY26 is unchanged “The Board remains confident in its strategic pillars and in driving continued shareholder value. Our operational excellence initiatives, underpinned by our competitive advantages and market positioning, mean that Stelrad remains well-placed to target market share gains across the geographies in which we operate.” Trevor Harvey, Chief Executive Officer Remain confident in Stelrad’s ability to benefit from our geographically diversified end markets, long-term structural growth drivers and opportunity that any market recovery would present
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Questions
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Appendices
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CAPITAL ALLOCATION Stelrad Group plc 27 Strategic execution Strong free cash flow growth Capital allocation Investment for organic growth Continued investment in: • New product development • Operational excellence • Customer service Selective acquisitions Based on our consolidation criteria: • Range enhancement • Acquiring routes to market • Acquiring brands Shareholders returns Via a progressive dividend policy Leverage control Targeting a leverage of c.1.0-1.5 x EBITDA* to enable: • Reduced lending costs • M&A flexibility Capital allocation priorities * Based on net debt before lease liabilities
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CONSOLIDATED INCOME STATEMENT SUMMARY Stelrad Group plc 28 H1 2026 £m H1 2025 £m Movement £m Movement % Revenue 124.0 136.5 (12.5) (9.1) EBITDA(1) 22.4 21.8 0.6 2.9 Adjusted operating profit(1) 16.7 15.9 0.8 4.9 Exceptional items (1.0) (12.0) 11.0 91.4 Amortisation of customer relationships - (0.1) 0.1 n/a Operating profit 15.7 3.8 11.9 307.6 Net finance costs (2.6) (3.7) 1.1 31.9 Profit before tax 13.1 0.1 13.0 13,287.8 Income tax expense (4.4) (3.5) (0.9) (25.9) Profit for the year 8.7 (3.4) 12.1 351.3 Earnings per share – basic (p) 6.80 (2.71) 9.51 351.3 Adjusted profit for the period(1) 9.5 8.2 1.3 16.0 Adjusted earnings per share – basic (p)(1) 7.43 6.41 1.02 16.0 Dividend per share (p) 3.19 3.04 0.15 5 (1) Adjusted figures are stated before exceptional items, amortisation of customer relationships and tax thereon.
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CONSOLIDATED BALANCE SHEET SUMMARY Stelrad Group plc 29 30 June 2026 £m 31 December 2025 £m Non-current assets Property, plant and equipment 68.7 72.5 Intangible assets 0.3 0.3 Trade and other receivables 0.3 0.3 Deferred tax assets 5.4 4.8 74.7 77.9 Current assets Inventories 70.7 62.4 Trade and other receivables 42.7 47.2 Income tax receivable 0.1 0.4 Financial assets 0.5 — Cash and cash equivalents 17.6 19.0 131.6 129.0 Total assets 206.3 206.9 30 June 2026 £m 31 December 2025 £m Non-current liabilities Interest-bearing loans and borrowings 78.6 74.4 Deferred tax liabilities 0.2 0.2 Provisions 1.7 1.9 Net employee defined benefit liabilities 4.6 4.6 85.1 81.1 Current liabilities Trade and other payables 60.8 67.0 Interest-bearing loans and borrowings 2.4 2.6 Financial liabilities - 0.2 Income tax payable 1.0 1.5 Provisions 2.3 1.1 66.5 72.4 Total liabilities 151.6 153.5 Total equity 54.7 53.4 Total equity and liabilities 206.3 206.9
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CONSOLIDATED STATEMENT OF CASH FLOW SUMMARY Stelrad Group plc 30 H1 2026 £m H1 2025 £m Movement £m EBITDA(1) 22.4 21.8 0.6 Exceptional items (1.0) — (1.0) Gain on disposal of property, plant and equipment (0.1) (0.1) — Share-based payment charge 0.4 0.6 (0.2) Working capital (11.0) (9.0) (2.0) Net capital expenditure (including finance lease spend) (3.5) (3.7) 0.2 Cash flow from operations 7.2 9.6 (2.4) Income tax paid (5.5) (4.8) (0.7) Net interest paid (1.9) (3.0) 1.1 Free cash flow (0.2) 1.8 (2.0) Dividends paid (6.4) (6.1) (0.3) Movements in borrowings 5.5 2.8 2.7 Cash outflow (1.1) (1.5) 0.4 Cash and cash equivalents at start of year 19.0 18.6 Cash outflow (1.1) (1.5) Net foreign exchange difference (0.3) 0.5 Cash and cash equivalents at end of period 17.6 17.6 (1) EBITDA is profit before interest, taxation, depreciation, amortisation and exceptional items.
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SUSTAINABILITY Stelrad Group plc 31 With its Fit for the Future strategy, the Group is also making good ESG progress In 2026, Stelrad: • Reduced the number of lost time incidents by 60%, and the total number of incidents by 39%, compared to H1 2025. • Maintained focus on decarbonisation, progressing initiatives to reduce operational emissions and producing long-term plans across the Group. • Supported customers' sustainability ambitions through the continued provision and development of independently verified Environmental Product Declarations (EPDs) and lower-carbon product solutions. • Continued to strengthen sustainability governance, including preparations for evolving sustainability reporting requirements and ongoing engagement with suppliers and key stakeholders.
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DISCLAIMER Stelrad Group plc 32 This presentation is not intended to, and does not constitute or form part of, any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in Stelrad Group plc or any other invitation or inducement to engage in investment activities, nor shall this presentation (or any part of it) nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Certain statements in this presentation are forward-looking statements which are based on Stelrad Group plc’s expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. Such forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as “aim”, “anticipate”, “target”, “expect”, “estimate”, “intend”, “plan”, “goal”, “believe”, or other words of similar meaning. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, Stelrad Group plc undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.