UK's Smiths Group FY revenue beats estimates, margin expands

Smiths

22/09/2026 07:09

Overview
UK industrial engineering firm's FY2026 revenue grew 1.2% organically, beating analyst expectations
Headline operating profit margin expanded to 20.6%, with profit rising 1.9% organically
Company completed £1.5bln share buyback, with another £1.5bln to be returned

Outlook
Smiths Group expects FY2027 organic revenue growth of around 4%
Company sees FY2027 headline operating profit margin of around 21%
Smiths Group maintains medium-term organic revenue growth target of 5-7%

Result Drivers
JOHN CRANE PERFORMANCE - Organic revenue growth in John Crane was driven by strong original equipment and Americas sales, partly offset by a ~£20mln impact from Middle East conflict
FLEX-TEK MIXED RESULTS - Flex-Tek saw strong aerospace growth but was offset by declines in US residential construction and lower Thermal Solutions revenue
PORTFOLIO CHANGES - Acquisition of DRC Heat Transfer expanded exposure to high-growth cooling and data centre markets; divestments focused the portfolio on higher-margin segments

Company press release: ID:nRSV6627Va

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Beat
GBP 1.94 bln
GBP 1.92 bln (11 Analysts)
FY Dividend
 
GBP 0.49
 
FY Operating Margin
 
20.60%
 
FY Operating Profit
 
GBP 399 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the consumer goods conglomerates peer group is "buy"
Wall Street's median 12-month price target for Smiths Group PLC is GBp2,885.00, about 11.4% above its September 21 closing price of GBp2,590.00
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 22 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)