Smiths Group plc Q4 2026 Earnings Recap

The 7.5% share-price gain suggests investors welcomed the outlook: Smiths expects around 4% organic revenue growth in FY27 and further margin progress into its 21%–23% target range. FY26 growth was modest, with organic revenue up 1.2%, but margins expanded and cash conversion remained high.

Key Takeaways

• FY26 organic revenue rose 1.2% to £1.9bn; headline operating profit increased 1.9% organically to £399m.
• Headline operating margin expanded 20 basis points to 20.6%, despite Middle East disruption, tariffs, lower volumes and growth investment.
• Headline EPS for continuing operations increased 6% to 86.8p; operating cash conversion was 96%. The proposed full-year dividend is 48.5p, up 5.4%.
• Growth faced pressure from Middle East disruption, which reduced John Crane revenue by £20m, and weakness in U.S. residential construction, alongside destocking and project phasing in Thermal Solutions.
• For FY27, management expects around 4% organic revenue growth and further margin progress. It says the medium-term 5%–7% growth target is achievable sooner, while near-term market conditions remain challenging.