Is SPX.L (Spirax-Sarco Engineering plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, SPX.L is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (17.60% vs ≤33% threshold), interest income ratio (0.78% vs ≤5% threshold), and cash & securities ratio (5.74% vs ≤33% threshold).

Spirax-Sarco Engineering plc is a FTSE 100 industrial giant specializing in thermal energy management and fluid technology. They are best known for their critical steam systems used in sterilization and heating, as well as Watson-Marlow pumps which are essential for fluid transfer in the pharmaceutical and food processing industries. Their business is divided into three highly specialized segments: Steam Specialties, Electric Thermal Solutions, and Watson-Marlow, making them a global leader in niche engineering solutions. For Muslim investors, Spirax-Sarco is classified as Halal, having passed all four rigorous AAOIFI screening metrics. The company’s business activities are entirely compliant, as they focus on industrial machinery and engineering rather than prohibited industries. This 'clean' operational profile makes it a straightforward inclusion for shariah-compliant portfolios looking for exposure to the high-quality UK industrial sector. Financially, the company demonstrates prudence that aligns well with Islamic finance principles. Their interest-bearing debt is relatively low at 17.6% of their market capitalization, significantly under the 33% threshold, and their cash holdings are also modest at 5.7%. Furthermore , the company generates less than 1% of its revenue from interest income, indicating that their profits are driven almost exclusively by their core engineering products rather than cash deposits. Spirax-Sarco Engineering plc operates in the Industrials sector under the Industrial - Machinery industry and is headquartered in Cheltenham, GB. The company is led by CEO Nimesh Balvir Patel and employs approximately 9,960 people.

SPX.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. SPX.L passed 4 of these 4 screens.

Although SPX.L passes all shariah screens, it does earn $13.0M in interest income (0.78% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.78 to purify the income.

SPX.L was last screened on 2026-03-01. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.