Half year results for 6 months ended 31 January 2025

Smiths Group plc – Half Year Results for 6 months ended 31 January 2025

Pioneers of progress – engineering a better future

Strong financial results; executing value creation strategy

• Continued strong financial performance: +9.1% organic¹ revenue growth, +50bps organic operating profit margin expansion to 16.7% and +14.0% headline² EPS growth
• Reaffirming full year guidance, raised twice this fiscal year, of 6-8% organic revenue growth and margin expansion of 40-60bps
• Disciplined capital allocation with enhanced returns: +5% increase in dividend; £150m of £500m share buyback completed, £97m invested in accretive acquisitions, with a further £32m bolt-on acquisition announced today
• Strategic actions to unlock significant value announced in January. Separation processes for Smiths Interconnect and Smiths Detection underway. Continued execution of the Acceleration Plan
• Focus on high-performance industrial technology businesses of John Crane and Flex-Tek with significant opportunities to enhance growth, improve the financial profile and deliver strong returns
• New, enhanced medium-term financial targets for FutureSmiths³ with higher growth, margin and returns

Roland Carter, Chief Executive Officer, commented: 

“We have delivered another strong financial performance which, combined with ongoing strategic and operational progress, underpins our confidence in achieving our twice-raised full year guidance.

“The portfolio actions that we announced in January 2025 are being advanced with pace and purpose, with the separation processes for Smiths Interconnect and Smiths Detection underway.

“The attraction of FutureSmiths is compelling. By focusing on our world-class, high-performance John Crane and Flex-Tek businesses we will deliver sustainable growth, higher margins, returns and earnings growth, as reflected in our new enhanced medium-term financial targets. Our strong cash generation enables us to continue to invest in the business organically, and inorganically, whilst being able to distribute significant capital to shareholders. We believe this will deliver substantial value creation.

“My thanks to all our Smiths colleagues across the world for your ongoing dedication and commitment as we work through these plans. We remain focused on achieving our purpose of engineering a better future, for the benefit of all our stakeholders.”

Statutory reporting and definitions

Statutory reporting takes account of all items excluded from headline performance. See accounting policies for an explanation of the presentation of results and note 3 to the financial statements for an analysis of non-headline items. The following definitions are applied throughout the financial report:

¹ Organic is headline adjusted to exclude the effects of foreign exchange and acquisitions.
² Headline: In addition to statutory reporting, the Group reports on a headline basis. Definitions of headline metrics, and information about the adjustments to statutory measures, are provided in note 3 to the financial statements.
³ FutureSmiths refers to Smiths Group excluding Smiths Detection and Smiths Interconnect.
⁴ Alternative Performance Measures (APMs) and Key Performance Indicators (KPIs) are defined in note 19 to the financial statements.

View the full press release

Presentation

A webcast presentation and Q&A will begin at 08.00 (UK time) today at:
https://smiths.com/investors/results-reports-and-presentations. A recording will be available from 13.00 (UK time).

Investor enquiries

Steph Heathers, Smiths Group
+44 (0)7584 113633
stephanie.heathers@smiths.com

Siobhán Andrews, Smiths Group
+44 (0)7920 230093
siobhan.andrews@smiths.com

Ana Pita da Veiga, Smiths Group
+44 (0)7386 689442
ana.pitadaveiga@smiths.com

Media enquiries

Tom Steiner, Smiths Group
+44 (0) 7787 415891
tom.steiner@smiths.com

Alex Le May, FTI Consulting
+44 (0)7702 443312
smiths@fticonsulting.com

Our Purpose

We are pioneers of progress – engineering a better future. We are focused on solving the toughest problems for our customers, helping address critical global needs such as safety and security, decarbonisation and the ever-increasing demand for connectivity. At the same time, we are building the long-term strength and resilience of Smiths Group and our global operations. We are united by our purpose. It is what we do, how we think, and how we will continue to use our passion for innovative technology and engineering.

Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11

This document contains certain statements that are forward-looking statements. They appear in a number of places throughout this document and include statements regarding the intentions, beliefs and/or current expectations of Smiths Group plc (the Company) and its subsidiaries (together, the Group) and those of their respective officers, directors and employees concerning, amongst other things, the results of operations, financial condition, liquidity, prospects, growth, strategies, and the businesses operated by the Group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this document and, unless otherwise required by applicable law, the Company undertakes no obligation to update or revise these forward-looking statements. The Company and its directors accept no liability to third parties. This document contains brands that are trademarks and are registered and/or otherwise protected in accordance with applicable law.

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