Smiths Group Shares Jump as Full-Year Results Above Guidance

Smiths Group (LON:SMIN) shares rose 4.2% on Tuesday after the engineering company posted stronger-than-expected results for the year to 31 July 2025 and outlined a confident outlook for the coming year.

Group revenue climbed 6.5% to £3.34 billion, with organic growth of 8.9%, ahead of twice-raised guidance.

Operating profit increased 10.3% to £580 million, while margins expanded by 60 basis points to 17.4%. Headline earnings per share rose 14.8% to 121.2p, and return on capital employed advanced to 18.1%.

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The board declared a 5.1% dividend increase to 46p per share and reported £398 million of a £500 million share buyback completed by September.

Statutory profit after tax rose 24% to £276 million. Smiths also maintained operating cash conversion at 99% and a modest net debt-to-EBITDA ratio of 0.6x, reflecting disciplined capital allocation.

The group invested £121 million in acquisitions and confirmed progress on separation plans for Smiths Interconnect and Smiths Detection, with an announcement on the former expected by year-end. The firm’s Acceleration Plan remains on track, targeting £40–45 million in annualised benefits from FY2027 onwards.

Chief executive Roland Carter hailed the year as “another successful” period, highlighting resilience amid macroeconomic uncertainty. He added: “Our order book and momentum in the business support our confidence in our positive outlook for FY2026, and we expect organic revenue growth of 4–6% and continuing margin expansion.”