20th May 2025 08:39
(Alliance News) - Smiths Group PLC on Tuesday said growth picked up in its third-quarter, and it now expects a full-year outcome at the top end of its guidance.
London-based Smiths is an engineering firm operating in the energy, security & defence, space & aerospace and general industrial sectors.
The company said revenue rose 11% on-year on an organic in the third-quarter to May 3. It means growth for the nine-month period is 9.6%.
"Reflecting this strong performance and momentum in the order book, the group now expects to be towards the top end of its 6-8% organic revenue growth guidance range and continues to expect margin expansion of 40-60 basis points for FY2025," Smiths added.
"Third quarter performance reflected further growth across all businesses, with particularly strong organic revenue growth in Smiths Detection and Smiths Interconnect, a continuation of the trends seen in the first half. Momentum improved from the second quarter at both John Crane and Flex-Tek."
Smiths Group expects the impact of tariffs to be "limited". It generates around 45% of its sales in the US.
The firm added: "The group is progressing the separation processes of Smiths Interconnect and Smiths Detection and remains on track for an announcement of a sale of Smiths Interconnect by the end of calendar year 2025, followed by the separation of Smiths Detection by way of a UK demerger or sale."
Chief Executive Officer Roland Carter said: "We are executing on the strategic actions we announced in January with pace and purpose to unlock our inherent value and become a premium rated company, focusing on our world-class, high-performance John Crane and Flex-Tek businesses. The sale process for Smiths Interconnect is firmly underway and preparatory work for the Smiths Detection separation process is also moving forwards."
Smiths Group said it has so far completed GBP260 million of its GBP500 million share buyback programme and remains on track to complete it by the end of 2025.
Smiths Group will report results for the financial year ending July 31 on September 23.
Smiths Group shares rose 1.2% to 2,078.00 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News slot editor
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