Smiths Group Reports Fiscal 2026 Results and Outlines Strategic Portfolio Changes
Smiths Group reported improved fiscal 2026 performance, with organic revenue growth of 1.2% to £1.9 billion and an operating margin expansion to 20.6%. Headline earnings per share rose by 6%, reaching 86.8 pence, while cash conversion hit a strong 96%. The company also increased its full-year dividend by 5.4% to 48.5 pence per share. Smiths completed significant portfolio reshaping through the sale of Smiths Interconnect and Detection for £3.3 billion in enterprise value and acquired DRC Heat Transfer for £165 million, enhancing exposure to data-center cooling markets. The company is also pursuing a divestment of John Crane's U.S. asbestos liability, which has averaged an annual net cash outflow of about £20 million over the past five years. For fiscal 2027, Smiths expects organic revenue growth of around 4% and operating margin to remain at 21%, despite anticipated disruptions in John Crane's first-half performance due to Middle East tensions. The company plans to repurchase up to £1.5 billion worth of shares by the end of calendar year 2027.
Topics: acquisitions divestitures financial_results guidance