Smiths Group plc (LON:SMIN) has announced its half year results for the six months ended 31 January 2026.
Pioneers of progress – engineering a better future
Excellent strategic progress, strengthening focus on higher growth and margin
· Excellent progress on strategic actions to reshape the portfolio:
o Sales of Smiths Interconnect and Smiths Detection agreed at attractive valuations for a combined enterprise value of £3.3bn, ahead of market expectations
o Smiths Interconnect approaching completion; Smiths Detection on track to close in second half of CY2026
· Disciplined capital allocation delivering enhanced shareholder returns plus growth accretive M&A:
o Current CY2026 £1bn share buyback underway, following completion of CY2025 £500m buyback in December
o Announcing today, a further £1.5bn to be returned to shareholders via a combination of structured return (tender offer or special dividend) and share buyback through CY2027, to commence following completion of Smiths Detection sale
o Dividend +5.4% to 15.00p, continuing track record of dividend growth
o Agreement signed in March to acquire DRC Heat Transfer for £164m, extending Flex-Tek’s offering into industrial cooling technologies with exposure to high growth markets, including data centres
· Solid financial performance, with positive Q2 momentum into the second half:
o Group1 delivered +4.0% organic2 revenue growth; headline3 operating profit margin +50bps to 17.2%
§ John Crane: mid-single digit growth in Q2; order book underpins continuing momentum into the second half with mid-single digit growth expected
§ Flex-Tek: continuing strong growth in aerospace, offset by weakness in construction reflecting the continued challenging US construction market
§ Smiths Detection: conversion of strong order book, with growth driven by aviation
· FY2026 outlook updated for Smiths to exclude Smiths Detection:
o Expect organic2 revenue growth of 3-4%, with H2 growth within medium-term 5-7% target range and operating profit margin of ~20%, progressing towards 21-23% target range
| Headline3 | HY2026 | HY2025 | Reported | Organic2 |
| Group1 | ||||
| Revenue | £1,437m | £1,406m | +2.2% | +4.0% |
| Operating profit | £248m | £234m | +5.6% | +7.2% |
| Operating profit margin4 | 17.2% | 16.7% | +50bps | +50bps |
| Continuing operations: Smiths1 | ||||
| Revenue | £915m | £924m | (1.0)% | +0.4% |
| Operating profit | £181m | £181m | (0.1)% | +1.6% |
| Operating profit margin4 | 19.8% | 19.6% | +20bps | +20bps |
| Total Group1 | ||||
| Basic EPS | 62.0p | 55.5p | +11.7% | +8.4% |
| ROCE4 | 18.4% | 17.1% | +130bps | |
| Operating cash conversion4 | 78% | 94% | (16)pps |
| Statutory | HY2026 | HY2025 | Reported |
| Revenue | £915m | £924m | (1.0)% |
| Operating profit | £159m | £167m | (4.8)% |
| Profit for the year (after tax) | £131m | £168m | (22.0)% |
| Basic EPS | 40.3p | 48.8p | (17.4)% |
| Dividend per share | 15.00p | 14.23p | +5.4% |
Statutory reporting and definitions
Statutory reporting takes account of all items excluded from headline performance. See accounting policies for an explanation of the presentation of results and note 3 to the financial statements for an analysis of non-headline items. The following definitions are applied throughout the financial report:
1 Group refers to the combination of John Crane, Flex-Tek (including certain general industrial businesses) and Smiths Detection; Total Group also includes Smiths Interconnect. Smiths and/or continuing operations refers to the combination of John Crane and Flex-Tek (i.e. excludes Smiths Detection, Smiths Interconnect and certain Flex-Tek general industrial businesses, see page 3 and note 16).
2 Organic is headline adjusted to exclude the effects of foreign exchange and acquisitions.
3 Headline: In addition to statutory reporting, the Group reports on a headline basis. Definitions of headline metrics, and information about the adjustments to statutory measures, are provided in note 3 to the financial statements.
4 Alternative Performance Measures (APMs) and Key Performance Indicators (KPIs) are defined in note 19 to the financial statements.
Roland Carter, Chief Executive Officer, commented:
“The first half was important for Smiths with the announcement of the transformational sale of Smiths Detection and Smiths Interconnect, achieving multiples above market expectations and ahead of schedule.
“2026 is a significant year of progress as we reposition Smiths towards higher growth and higher returns markets. We delivered increased momentum in the second quarter, and our strong order book supports an improved second-half performance.
“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 £1.5bn of returns to shareholders.
“During a period of considerable change, I want to recognise our colleagues’ continued dedication to delivering for our customers, living our Values, and fulfilling our purpose.”
Presentation
A webcast presentation and Q&A will begin at 08.00 (UK time) today at: https://smiths.com/investors/results-reports-and-presentations. A recording will be available from 13.00 (UK time).
