UK's Smiths Group misses half-year revenue growth estimates amid US construction woes (updated)
20/03/2026 07:47
Recasts with half-year revenue miss in paragraph 1, details and background throughout March 20 (Reuters) - British engineering group Smiths Group SMIN.L fell short of half-year organic revenue growth estimates on Friday, weighed by a weak performance in its Flex‑Tek division as the U.S. construction market continues to face headwinds. Originally known for precision watches and speedometers, Smiths Group has streamlined its operations to focus on industrial technologies through its John Crane and Flex-Tek units. John Crane supplies components for rotating equipment, while Flex‑Tek provides engineered components across aerospace, industrial, construction and appliance markets. After agreeing to sell its detection unit and its Smiths Interconnect last year, Smiths expects to return another 1.5 billion pounds ($2.01 billion) to shareholders. Smiths Group's headline organic revenue for continuing operations grew 0.4% in the six months to January 31, below analysts' estimates of a 2.3% growth, per a company-compiled poll. The company also forecast organic revenue growth between 3% and 4% for 2026, which does not incorporate any potential impacts from the Iran war. John Crane, its largest division, remains exposed to fluctuations in the oil and gas sector, and recently secured a multi‑million‑pound contract in the Middle East. In the first half of fiscal 2026, the Middle East accounted for roughly 7% of Smiths' revenue, driven largely by John Crane. ($1 = 0.7460 pounds) (Reporting by Yamini Kalia in Bengaluru; Editing by Sumana Nandy and Janane Venkatraman) ((Yamini.Kalia@thomsonreuters.com;))