Smiths Group (LSE: SMIN) posted headline EPS of 62.0p (+11.7%) and Group revenue of £1,437m (+4.0% organic) for the six months ended 31 January 2026. The result was in line with guidance, though shares fell nearly 10% on results day as cash conversion disappointed and full-year revenue guidance was trimmed to exclude the Smiths Detection business now classified as discontinued.
About Smiths Group PLC
Smiths Group PLC (LSE: SMIN) is a British industrial engineering company founded in 1851 and headquartered in London, United Kingdom. With 175 years of history, the company operates in the energy, industrials, construction, and aerospace sectors through its two continuing business units, John Crane and Flex-Tek. As of March 20, 2026, Smiths Group carries a market capitalisation of approximately £7.26 billion and an enterprise value of £7.76 billion. The stock trades under the ticker SMIN on the London Stock Exchange and under the ADR tickers SMGZY and SMGKF in the US.
The company employs approximately 16,000 people across more than 50 countries. John Crane is a global leader in mechanical seals, seal support systems, power transmission couplings, and filtration systems serving the energy and process industries, while Flex-Tek provides engineered flexible hosing, rigid tubing, and thermal solutions for the construction, aerospace, and industrial markets. The trailing twelve-month P/E ratio stands at 29.16x, with a forward P/E of 19.08x, and the dividend yield is approximately 1.96%.
Top Financial Highlights
- Group revenue reached £1,437m, up +2.2% reported and +4.0% organically versus HY2025 (£1,406m)
- Headline operating profit grew to £248m (+5.6% reported, +7.2% organic), with margin expanding +50bps to 17.2%
- Headline basic EPS rose +11.7% to 62.0p (HY2025: 55.5p), enhanced by the ongoing share buyback programme
- Statutory basic EPS declined (17.4)% to 40.3p (HY2025: 48.8p) due to non-headline separation and impairment costs
- Continuing operations (Smiths) revenue was £915m, down (1.0)% reported but +0.4% organically, with operating margin at 19.8% (+20bps)
- John Crane revenue was flat at £551m reported (+2.0% organic), with operating margin expanding to 23.2% (+50bps organic)
- Flex-Tek revenue of £364m declined (2.0)% organically, reflecting weakness in US construction offset by strong aerospace growth of +10.1%
- Smiths Detection revenue grew +11.7% organically, driven by aviation checkpoint upgrades, though it is now classified as discontinued operations
- Operating cash conversion was 78% (HY2025: 94%), weighed down by a deliberate inventory build to service the order book
- Return on Capital Employed (ROCE) increased +130bps to 18.4%
- Dividend increased +5.4% to 15.00p per share, payable 13 May 2026
- Net debt increased to £843m (1.2x EBITDA) following a €650m bond issuance and £180m in share buybacks executed in H1
- Cash on hand was £345m at 31 January 2026, with total liquidity of £1.1bn including revolving credit facilities
- FY2026 guidance updated: Organic revenue growth of 3-4% for continuing operations; operating profit margin of approximately 20%
- Additional £1.5bn shareholder return announced via a combination of structured return (tender offer or special dividend) and share buyback from Smiths Detection proceeds, commencing post-sale completion in CY2027
Beat or Miss?
| Metric | Reported (HY2026) | Prior Guidance / Expected | Difference and Analysis |
| Group Organic Revenue Growth | 4.00% | 4-6% guidance range | At the low end of prior guidance range |
| Group Revenue (Reported) | £1,437m | £1,406m (HY2025 base) | +2.2% reported; FX headwind of £(36)m impacted reported figure |
| Headline Operating Profit Margin (Group) | 17.20% | “Continuing margin expansion” | +50bps delivered, consistent with guidance |
| Headline Operating Cash Conversion | 78% | Mid-nineties percent | Significant miss; £(16)pps below HY2025’s 94%; driven by inventory build |
| Continuing Ops Organic Revenue Growth | 0.40% | Higher H2 weighting expected | H1 deliberately weighted to H2 per company; met internal expectations |
| Headline Basic EPS | 62.0p | N/A (consensus not disclosed) | +11.7% reported growth, +8.4% organic |
| Statutory Basic EPS | 40.3p | N/A | (17.4)% decline due to separation and impairment costs |
| FY2026 Organic Revenue Guidance | 3-4% (updated) | Previous 4-6% (full Group) | Guidance reduced and scope narrowed to exclude Smiths Detection |
What Leadership Is Saying?
“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.” Roland Carter, Chief Executive Officer:
“Solid revenue growth with momentum building and continuing margin expansion. EPS growth enhanced by operating profit growth and share buyback. ROCE expansion driven by profit growth and efficient use of capital. Cash conversion reflecting decision to increase inventory levels. Julian Fagge, Chief Financial Officer
Historical Performance
Smiths Group HY2026 vs HY2025 (Year-on-Year Comparison)
| Category | HY2026 | HY2025 | Change (%) |
| Group Revenue (Headline) | £1,437m | £1,406m | +2.2% reported / +4.0% organic |
| Headline Operating Profit (Group) | £248m | £234m | +5.6% reported / +7.2% organic |
| Headline Operating Profit Margin (Group) | 17.20% | 16.70% | +50bps |
| Continuing Ops Revenue (Smiths) | £915m | £924m | (1.0)% reported / +0.4% organic |
| Continuing Ops Operating Profit | £181m | £181m | Flat reported / +1.6% organic |
| Continuing Ops Operating Margin | 19.80% | 19.60% | +20bps |
| Headline Basic EPS (Total Group) | 62.0p | 55.5p | 11.70% |
| Statutory Basic EPS | 40.3p | 48.8p | -17.40% |
| Statutory Profit After Tax | £131m | £168m | -22.00% |
| Operating Cash Conversion | 78% | 94% | (16)pps |
| ROCE | 18.40% | 17.10% | +130bps |
| Dividend Per Share | 15.00p | 14.23p | 5.40% |
| Net Debt | £843m | £299m | Increase driven by bond and buyback |
Segment Performance
| Business Unit | Revenue HY2026 | Revenue HY2025 | Organic Growth | Op. Margin HY2026 | Op. Margin HY2025 |
| John Crane | £551m | £551m | 2.00% | 23.20% | 22.90% |
| Flex-Tek | £364m | £373m | -2.00% | 20.40% | 20.80% |
| Smiths Detection (discontinued) | N/A (in Group) | N/A | 11.70% | 13.80% | 11.30% |
Competitor Comparison
The following table compares the most recent available reported period performance of Smiths Group against two key industrial engineering peers: Flowserve Corporation (NYSE: FLS), which competes directly with John Crane in the flow control and mechanical seal market, and Crane NXT (NYSE: CXT), a separated industrial technology spinoff.
| Category | Smiths Group HY2026 | Flowserve FY2025 (Full Year) | Crane NXT FY2025 (Full Year) |
| Revenue | £1,437m (~$1.97bn) Group | $4.7bn (TTM) | $1.66bn |
| Revenue Growth | +4.0% organic | ~5% YoY (Q1 2025 representative) | +11.4% YoY |
| Operating Profit Margin | 17.2% (Group headline) | Adjusted ~12.8% (Q1 2025) | Adjusted 21.2% (FY2025) |
| Net Income / EPS | 62.0p headline EPS | Adj. EPS $3.10-$3.30 guidance (FY2025) | Adj. EPS $4.06 (FY2025) |
| Key End Markets | Energy, industrials, construction, aerospace | Flow control for global infrastructure | Currency security and authentication technology |
| Market Cap (approx.) | £7.26bn (~$9.9bn) | N/A (listed NYSE: FLS) | ~$2.34bn |
Direct period-for-period comparison is approximate given different fiscal year structures and reporting currencies. Smiths Group reports in GBP; Flowserve and Crane NXT in USD. Crane NXT is primarily a payment and authentication technology firm rather than a traditional industrial engineering peer, but it shares heritage with the original Crane Co. industrial conglomerate.
How the Market Reacted?
Shares in Smiths Group fell sharply on results day, dropping approximately 10% to 2,118p on March 20, 2026, extending a decline of roughly (10.48)% over the prior five days. The negative reaction came despite a broadly solid operational performance, with investors focusing on the miss in operating cash conversion (78% versus the guided mid-nineties percent) and the narrowing of full-year organic revenue guidance to 3-4% for continuing operations, compared to the prior range of 4-6% for the full Group.
The stock touched an intraday low of 2,094p, its weakest level in months, compared to a 52-week high of 2,746p. Sentiment was further weighed by the reclassification of Smiths Detection as discontinued operations, which removed that division’s strong organic growth of +11.7% from continuing guidance, reducing the headline growth picture.
