Porvair (LON:PRV) used its full-year results presentation for the year ended Nov. 30, 2025 to outline record revenue, profit, and margin performance, while also detailing a shift in near-term priorities following a strategic review and the post-year-end acquisition of Drache.
Management said the group delivered progress despite “economic uncertainty and end market inconsistency,” citing mixed conditions across industrial markets alongside stronger trends in aerospace and environmental testing. The company also highlighted continued investment in capacity and automation, including a major aluminum cast house production-line upgrade in the U.S.
Full-year financial performance and cash generation
Foreign exchange was a recurring theme. James said revenue faced a translation headwind from a weaker U.S. dollar, noting that about 45% of group revenue is delivered from the U.S. Adjusted operating profit was also adversely impacted by FX by around £0.3 million. Price increases averaged around 3% across the group, while volumes were affected by “some strong comps in certain parts of the business.”
On cash, Porvair generated £29.2 million of cash from operations, up 14%, which management attributed to improved trading performance and working capital discipline. The working capital outflow was £1.6 million, improved from £3.8 million the prior year. After capital spending, the company ended the year with £22.9 million of cash and no debt.
James also provided an update on the U.K. defined benefit pension scheme. He said Porvair completed the latest triennial valuation and agreed with trustees to maintain recovery payments of £2.1 million per annum, with a goal of reaching a “low-risk self-sufficiency basis” by December 2028.
Capital spending totaled £7.7 million, above the usual run rate of around £5 million per year, including roughly £3 million tied to the group’s £5.5 million investment in an aluminum cast house production line in Hendersonville, U.S. The company expects another £1.5 million on that project in 2026, and said next year’s CapEx is likely to be around £7 million again.
In line with its progressive dividend policy, the board recommended a 7% increase in the final dividend to £0.045.
Divisional performance: aerospace strength, mixed industrial, steady labs
Porvair reported margin improvement across all three divisions, with end-market dynamics varying by segment.
- Aerospace & Industrial (A&I): 43% of group revenue. Division revenue was down 1% (flat at constant currency). Operating profit was £11.9 million with a 14.2% margin, up 20 basis points and at the “bottom end” of the division’s 14%–16% target range.
- Laboratory: 35% of group revenue. Revenue rose 4% to £66.9 million (up 5% at constant currency). Operating profit was £10.9 million and margin was 16.3%, which management said was ahead of the division’s 15%+ target.
- Metal Melt Quality (MMQ): 22% of group revenue. Revenue declined 1% to £43.4 million (up 1% at constant currency). Operating profit was £6.6 million with margin “just over” 15%, remaining above the division’s 10%–12% target range.
Within A&I, James said aerospace revenue grew 4% for the year, with a stronger second half after a slower first half. He cautioned that, despite good order visibility, revenue timing can be affected by the wider supply chain and “fluctuations in OEM stocking levels.”
Industrial markets were more uneven. Petrochem sales ended 6% lower after a strong first half, and management expects the European petrochem market to remain subdued through 2026. Gasification revenue was down year-over-year as a prior-year customer win largely traded in 2024, though Porvair won a “modest” new gasification project in the second half that is due to trade in 2026. In the U.S., the company cited weakness in microelectronics, while nuclear finished 8% up with a “healthy” order book going into 2026. James also noted continued progress at EFC, acquired in December 2023, which has now completed two full years in the group.
In the Laboratory division, environmental (SEAL Analytical) delivered 9% revenue growth, supported by demand for SEAL instruments, while life sciences businesses delivered “steady progress.” James highlighted a “particularly pleasing year” for Kbiosystems, which supplies lab automation equipment. Management attributed the year’s progress to improved operational focus, ongoing automation and capacity CapEx, and volume/throughput benefits, particularly within SEAL.
MMQ results reflected weakness in foundry, with softness in U.S. end markets, particularly agriculture. However, management said the second half improved versus the first, and noted that foundry is a relatively small, lower-margin offering within MMQ. The super alloys product range grew on aerospace and energy demand, while aluminum demand remained robust, including in China. Management reiterated that the aluminum cast house investment is a “once in a 20–25 year” upgrade, expected to be completed in the first half of 2026.
Drache acquisition and positioning in aluminum filtration
Chief executive Hooman discussed the acquisition of Drache, announced Jan. 12 after the period end, describing it as a leading supplier to the aluminum filtration market and a “strong strategic fit” with the MMQ division. He said the business is a cultural fit with SELEE and adds a European base, complementing SELEE’s North American strength while strengthening the combined position in Asia.
Hooman said Drache brings complementary products and strengthens MMQ’s systems and engineering expertise, positioning the division to become a “full product and service provider” to aluminum cast house customers. Management expects the acquisition to start contributing to the group in 2026 and beyond, and said it makes MMQ’s position within the group “more balanced.”
Strategy, ESG progress, and 2026 outlook
Management said it conducted a full strategy review and established an executive committee of executive directors and divisional managing directors to enhance execution. Hooman emphasized Porvair’s decentralized model, technical know-how, engineered-in product positions, and a high proportion of recurring revenue tied largely to customers’ operating expenditure.
On ESG, Porvair said filtration products support emissions reduction, waste reduction, and process efficiency. Hooman said the company measures and incentivizes senior managers with ESG metrics. He also reported progress on carbon intensity: Porvair set a target in 2020 to reduce carbon intensity by 10% by 2025, achieved it in 2022, then set and achieved an additional 10% reduction by 2025. In total, management said carbon intensity fell 31% from the 2020 baseline and 11% from 2022.
Looking ahead to 2026, Hooman cited key near-term themes including integrating Drache, new product introductions across aerospace, SEAL Analytical, and Porvair Sciences, and a hoped-for recovery in industrial consumables. He added that Porvair sees no change in its long-term demand drivers and plans to continue investing, including completing installation of the new aluminum filtration manufacturing line in Hendersonville during the year.
About Porvair (LON:PRV)
Porvair plc engages in the filtration, laboratory, and environmental technology business. It operates through three segments: Aerospace & Industrial, Laboratory, and Metal Melt Quality. The Aerospace & Industrial segment designs and manufactures a range of specialist filtration equipment for aerospace, energy, and industrial applications. The Laboratory segment is involved in the design and manufacture of instruments and consumables for use in environmental and bioscience laboratories with a focus on water analysis instruments, diagnostics, and sample preparation equipment.
