20th Mar 2026 09:02
(Alliance News) - Smiths Group PLC on Friday posted a decline in both interim profit and revenue, and revised its full-year revenue growth outlook following the reclassification of Smiths Detection.
The London-based engineering company reported GBP126 million in pretax profit for the six months that ended January 31, down 17% from GBP152 million a year prior.
Driving the weaker earnings was a 1.0% top line contraction, as revenue fell to GBP915 million from GBP924 million.
Chief Executive Roland Carter described 2026 as a "significant year of progress" for the company, as it seeks to "reposition Smiths towards higher growth and higher returns markets".
Smiths said it plans to return an additional GBP1.5 billion to shareholders through 2027, through a combination of a structured return and a further buyback programme.
The company said it will utilise proceeds from the sale of Smiths Detection, adding that this capital return is in addition to the 2026 GBP1 billion buyback that is underway.
In December, Smiths announced the sale of Smiths Detection to funds advised by CVC Capital Partners PLC at an enterprise value of GBP2.0 billion.
Also in December, it agreed to sell its connectivity products and solutions business, Smiths Interconnect, to Molex Electronic Technologies Holdings LLC, at an enterprise value of GBP1.3 billion.
On Friday, Smiths declared an interim dividend of 15.00 pence, up 5.4% from 14.23 pence.
Looking ahead, Smiths provided an updated outlook to its financial 2026 guidance, following the reclassification of Smiths Detection as discontinued operations.
The company sees organic growth for the financial year of 3% to 4%, down from 4% to 6% guided previously. Smiths reported revenue of GBP2.92 billion in financial 2025.
Shares in Smiths fell 5.5% to 2,222.00 pence on Friday morning in London.
"Following the completion of the disposals, Smiths will be a focused, premium industrial engineering company. Our strategy is delivering significant value and supporting enhanced, sustainable returns, alongside our continued investment into Smiths, and commitment to a further GBP1.5 billion of returns to shareholders," added CEO Carter.
By Christopher Ward, Alliance News reporter
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