Smiths Group (LON: SMIN) confirmed on Tuesday that it has completed the sale of its Detection and Interconnect divisions for a combined £3.3bn, and guided to around 4% organic revenue growth in the new financial year. The results were published via RNS before the London market opened.
Smiths shares closed at 2,590p on Monday, near the stock’s 52-week high of 2,754p reached on the 7th of August and well above its 52-week low of 2,075p in March. No confirmed post-results reaction was available before markets opened this morning.
The divestments, completed at 15.1 times and 12.5 times 2025 EBITDA respectively, swung Smiths from £462m of net debt to £1,747m of net cash. Chief executive Roland Carter said the year marked “significant strategic progress” for the group.
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“2026 was a year of significant strategic progress. We transformed our portfolio and unlocked over £3bn of value which repositioned Smiths as a focused, premium industrial engineering company.” – Roland Carter, Chief Executive Officer, Smiths Group
What remains, John Crane and Flex-Tek, grew revenue just 1.2% organically in FY26, with margins at 20.6%. FY27 guidance targets margin near 21%, the bottom of Smiths’ 21-23% medium-term range, with John Crane’s Middle East disruption costing an estimated £20m.
Smiths is banking on its April purchase of DRC Heat Transfer, which added data-centre cooling exposure and £35.5m of revenue in four months, to help close the gap to its 5-7% medium-term growth target. The group also raised its total dividend by 5.4% to 48.5p, its 75th consecutive year of payouts.
FY27 guidance of roughly 4% growth remains well above the 1.2% delivered this year, leaving Smiths to show it can close that gap.
