UK's Smiths Group half-year revenue grows, plans £1bn share buyback

Smiths

20/03/2026 07:10

Overview

UK industrial engineering group's half-year revenue grew 4% organically

Operating profit rose 5.6% yr/yr, margin expanded to 17.2%

Company announced £1bn share buyback underway, plans further £1.5bn capital return post asset sale

Outlook

Smiths expects FY2026 organic revenue growth of 3-4% for continuing operations

Company sees FY2026 headline operating profit margin at ~20%, progressing towards 21-23% target

Smiths plans £1.5bn capital return to shareholders after Smiths Detection sale completion

Result Drivers

JOHN CRANE MOMENTUM - Co said growth in John Crane was led by strong sales in energy markets and aftermarket services, supported by an expanding order book and operational improvements

FLEX-TEK MIXED PERFORMANCE - Co said Flex-Tek saw continued growth in aerospace, offset by weakness in US construction and customer destocking in thermal solutions

MARGIN EXPANSION - Co attributed margin improvement to increased pricing, positive mix, efficiency savings from Smiths Excellence, and Acceleration Plan benefits, mainly in John Crane

Company press release: ID:nRST3897Xa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
Slight Miss*
GBP 1.44 bln
GBP 1.45 bln (1 Analyst)
H1 Net Income
GBP 131 mln
H1 Dividend
GBP 0.15
H1 Operating Margin
17.20%
H1 Operating Profit
GBP 248 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "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 GBp2,850.00, about 21.3% above its March 19 closing price of GBp2,350.00

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)