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1 Smiths Group plc FY2026 results 22 September 2026
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2 Disclaimer This presentation contains certain statements that are forward-looking statements. They appear in a number of places throughout this presentation and include statements regarding the intentions, beliefs and/or current expectations of Smiths Group plc (the “Company”) and its subsidiaries (together, the “Group”) and those of their respective officers, directors and employees concerning, amongst other things, the results of operations, financial condition, liquidity, prospects, growth, strategies and the businesses operated by the Group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this presentation and, unless otherwise required by applicable law, the Company undertakes no obligation to update or revise these forward-looking statements. The Company and its directors accept no liability to third parties. This presentation contains brands that are trademarks and are registered and/or otherwise protected in accordance with applicable law.
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3 Opening remarks Roland Carter FY2026 Financial results Julian Fagge Strategy update Roland Carter Q&A Agenda
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4 4 Roland Carter Chief Executive Officer Opening remarks
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5 5 Significant strategic progress - Transforming the company - Unlocking £3.3bn of value A focused, premium industrial engineering company Resilient financial performance - Organic revenue growth - Margin expansion - Strong cash generation Strategy for growth and value creation Significant strategic progress, strengthening focus on higher growth and margin - Momentum supports FY2027 outlook - Strong conviction in delivering medium-term targets more quickly - High-grading portfolio - Expanded into high-growth data centre markets - Enhancing free cashflow and strengthening balance sheet - Accelerate - Innovate - Execute - Compound
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6 6 FY2026 Financial results Julian Fagge Chief Financial Officer
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7 7 1. Smiths and/or continuing operations refers to the combination of John Crane and Flex-Tek (excl. Smiths Detection, Smiths Interconnect and certain Flex-Tek general industrial businesses. Total Group refers to the combination of John Crane, Flex-Tek (incl. contributions from certain general industrial businesses), Smiths Detection and Smiths Interconnect) 2. Headline excludes items defined in note 3 of the financial statements 3. Organic is headline adjusted to exclude the effects of foreign exchange and acquisitions FY2026 FY2025 Reported change Organic3 change Continuing operations: Smiths1 (Headline2) Revenue £1,937m £1,898m +2.1% +1.2% Operating profit £399m £388m +2.7% +1.9% Operating profit margin 20.6% 20.5% +10bps +20bps ROCE 23.5% 24.5% (100)bps Basic EPS 86.8p 81.9p +6.0% Operating cash conversion 96% 97% (1)pps Total Group1 (Headline2) Basic EPS 135.7p 121.2p +12.0% Dividend per share 48.5p 46.0p +5.4% • Resilient organic revenue performance despite challenging energy and construction markets • Organic margin expansion +20bps, alongside continued investment • Strong EPS growth enhanced by operating profit growth and share buyback • Dividend growth of +5.4%, alongside market-leading capital returns Resilient financial performance
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8 8 • Resilient John Crane growth despite £20m Middle East impact • Strong aerospace growth with successful contract renewals • Challenging US residential construction market • Positive contribution from acquisitions, in particular DRC Resilient organic1 revenue growth, enhanced with high-growth acquisitions Organic growth H1 2026 H2 2026 FY 2026 +0.4% +1.9% +1.2% +2.6% +3.8% +1.4% 1. Organic is headline adjusted to exclude the effects of foreign exchange and acquisitions Acquisition growth
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9 9 • Lower volume reflects challenging market conditions • Strong pricing power • Increase in strategic growth investments • Small impact from tariffs • Acceleration Plan delivered in line with expectations • Continuing Smiths Excellence and efficiency savings Operating margin expansion with good operating profit growth FY2025 Operating margin FX Acquisitions Volume Price above inflation Investment for growth Tariffs Net savings FY2026 Operating margin Smiths operating margin (%) +20bps organic margin expansion 20.5% 20.6% (20)bps +10bps (80)bps (50)bps (50)bps +20bps +180bps
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10 10 Earnings per share (pence) 1. Predominantly relates to IFRS5 accounting – no depreciation or amortisation recorded for discontinued businesses, impacting EPS 121.2 1.5 3.5 10.1 (1.0) 135.3 2.7 1.5 (3.8) 135.7 FY2025 EPS Smiths organic profit Discontinued operations profit Share buyback Tax and interest Base EPS Acquisitions Adjustment for divestments FX FY2026 EPS +12.0% reported growth 1 Strong EPS growth reflecting operating profit growth and share buyback
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11 11 Actuals FY2026 (£m) FY2025 (£m) Operating profit 399 388 D&A2 25 28 Lease depreciation 23 21 Other non-cash 23 16 Working capital (47) (25) Capex (39) (51) Operating cashflow 384 377 • 96% operating cash conversion1 • Capex ahead of depreciation reflecting continued investment in growth and efficiency • Working capital outflow reflects higher inventory to support order delivery; receivables in Middle East Operating cashflow 1. Smiths operating cash conversion 377 11 (1) (22) 12 3847 FY2025 Operating cashflow Operating profit D&A (including leases) Other non-cash Working capital Capex FY2026 Operating cashflow 97% OCC1 96% OCC1 Strong operating cash conversion
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12 Business update John Crane Flex-Te k
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13 13 John Crane • Resilient growth against difficult market and geopolitical backdrop • c.+4% growth excluding ~£20m Middle East impact, with strength in Americas and OE • Industrial growth driven by general industry, mining and water, partly offset by chemicals • Improvement in operational execution, with faster lead times and improved on-time delivery • Acceleration Plan benefits alongside an £8m increase in investment in strategic projects Operating profit £270m +3.5%1 23.9% +30bps1 Operating margin £1,130m +2.3%1 Revenue - Original equipment: +4.1% - Aftermarket: +1.9% - Original equipment: +4.8% - Aftermarket: +0.4% Industrial +2.0%: Energy +2.5%: 1. Reflects organic revenue, organic operating profit growth and organic operating margin movement Energy 63% Aftermarket 70% Industrial 37% OE 30%
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14 14 Current environment • Slower order intake • Postponement of capex • Lower run-rate orders • Higher receivables • Volatile environment Recovery phase • Start of recovery, mainly in aftermarket • Gradual resumption of large projects Longer-term • Increased prioritisation of energy security and resilience • Driving higher investment globally into critical energy infrastructure Our response • All manufacturing and service facilities operational • Investing in stock availability • Supporting customers as well as preparing for recovery Broad installed base | Local presence | Unrivalled service capability | Deep customer intimacy • Operational execution • Ensuring stock availability and supply chain resilience • Rebalancing production capacity • Investing in service and manufacturing capabilities Operating environment Middle East in focus
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15 15 Flex-Te k • Construction – challenging US market but continuing to drive for growth • Thermal Solutions – impacted by H1 heat kit destocking and project phasing • DRC – expands our position into cooling solutions, with exposure to high-growth data centre market • Aerospace – strong growth from order book execution and benefits from contract renewals • Margin decline reflects lower volume and tariffs, with benefits from pricing and efficiency savings Operating profitRevenue 1. Reflects organic revenue, organic operating profit growth and organic operating margin movement £807m (0.4)%1 Aerospace: +10.6% Construction: (3.6)% Thermal Solutions: (6.2)% 21.0% (80)bps1 £170m (4.2)%1 Operating margin Construction 45% Thermal 27% Aerospace 28%
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16 16 • RD&E 3-4% of revenue • Capex 2-3% of revenue • Commercial and strategic growth initiatives Our capital allocation framework – deploying cashflow to deliver growth and returns Organic investment Enhanced shareholder returns • Higher-growth market adjacencies • Expand into attractive growth opportunities • Driving growth and returns • Average growth of +5.2% in past 5 years • 75 consecutive years of dividend payments • Return surplus capital • Ongoing share buyback programme potential Value-accretive acquisitions Progressive dividend policy Supported by strong balance sheet and solid investment grade credit rating FY2026 £1,747m net cash • RD&E £64m1 • Capex £39m • Strategic projects • Commercial and engineering teams • £165m for DRC Heat Transfer • DPS +5.4% to 48.5p • Dividend cost £149m • Completed £500m buyback • Completed £1bn buyback • £1.5bn still to be returned 1. Including John Crane’s customer-specific engineering-related projects • Divest non-core assets • Address legacy liabilities • Strengthen balance sheet • Enhance FCF conversion Portfolio management • Sold 3 Flex-Tek industrial businesses for £40m • £760m SIPS pension scheme buy-in; £900m TI scheme buy-out • Announced launch of asbestos liability divestment
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17 17 FY2027 outlook • Organic revenue growth of c.4% • Headline operating profit margin c.21% • Operating cash conversion of low 90%s Smiths John Crane Flex-Tek • Growth weighted towards H2 • Robust order book with strong order intake in the Americas • Assumes Middle East impact continues through H1; recovery during H2 • Continue to benefit from improved execution • Growth weighted towards H1 • Assumes subdued US construction market; continue to drive performance • Underlying growth in Thermal Solutions, supplemented by DRC acquisition • Strong Aerospace order book and coverage Strong conviction in achieving 5-7% organic revenue growth and 21-23% operating margin targets
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18 18 Strategy update Roland Carter Chief Executive Officer
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19 19 Construction AerospaceFlow Control Thermal Solutions Flex-TekJohn Crane % of FY2026 revenue 19% 11% 12%58% Portfolio focused on strategic growth pillars
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20 20 Well positioned in attractive markets supported by structural growth trends Energy demand and energy security Industrial electrification Housing availability and affordability Aviation growth • US housing shortage • Population growth and migration • Performance efficiency • Demand for HVAC • Growth in passenger travel • Commercial aircraft backlog • Increasing defence spending • Energy security, resilience and self-sufficiency • Investment in critical infrastructure, especially power generation, LNG • Energy transition • Increasing technological demands • Industrial decarbonisation and automation • Industrial process heating and advances in electric heating technologies • Rapid growth of data centres and digital infrastructure ~5%1 ~6%1~5%1 ~4%1 Productivity, sustainability and geopolitical volatility 1. Five-year CAGR
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21 21 Customer-centric operating model with high-quality aftermarket and recurring revenue Providing • Prime contracting relationship with customers through product lifecycle • >90% recurrent and growing success in expanding market share with existing customers • AM gross margins ~1.75x OE John Crane • LT distributor relationships in Construction • Customised heating solutions in partnership with customers • Long-standing relationships as qualified supplier to major data centre customers • Long-term agreements (‘LTA ’) with major aircraft manufacturers Flex-Tek 70% aftermarket revenue 70% repeatable revenue in Construction >75% Aerospace revenue under LTA, contracted or repeatable revenue Customer intimacy Enhanced pricing Sustainable growth and margin Lower volatility Cashflow resilience
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22 22 Smiths Growth Algorithm Execute Relentlessly, applying Smiths Excellence and investing in people, process and systems Compound Invest free cashflow into value-accretive acquisitions that compound growth and value Accelerate Organic growth through maximising the core and targeted investment into new opportunities Innovate To meet customer needs, drive customer intimacy and deliver growth Strong conviction in our through- cycle medium-term targets 5-7% organic revenue growth 21-23% operating profit margin >10% EPS growth >20% ROCE ~100% operating cash conversion
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23 23 Strong distributor relationships • Cross-selling flex/metal • Greater share of customer wallet Customised solutions • Launch of Thermal Solutions strategy - expand existing capabilities into higher-growth markets • Advancing electrification and energy storage project opportunities Core portfolio • New major contracts in LNG and NGL Aftermarket • New Performance Plus agreements in energy and chemicals Contract renegotiation • New LT contracts with major aircraft engine manufacturers Aftermarket / MRO • New repair programme with Pratt & Whitney Accelerate – commercial initiatives and investment to drive sustainable organic growth Higher growth sub-segments • Geographies – new Canadian sales channel Higher growth sub-segments • Geographies – US, Latin America • Energy transition – sealing technologies for geothermal project • Industrial – wins in mining and pulp & paper Higher growth sub-segments • Data centre market entry; capacity expansion potential • Heating synergies with DRC cooling technologies Higher growth sub-segments • Geographies – India expansion Flow Control Flex-TekJohn Crane Construction AerospaceThermal Solutions
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24 24 Metals, coatings, polymers to meet and enhance product specification and requirements Improved manufacturing processes to reduce labour, increase productivity and enable new designs New technologies for more demanding applications New and differentiated product development and commercialisation Innovate – enhanced approach to drive differentiation and profitable growth Materials Process Technology Products • John Crane’s diamond coatings for high duty seals and materials development for H 2 technologies • Flex-T ek’s new internal materials for heaters in corrosive environments • Enhanced test rigs at John Crane for more demanding applications • Increased use of automation in manufacturing • Increased pressure Flex-Te k aerospace hoses • John Crane Type 93AX separation seal; Type 8628VL ethane/ethylene pipeline seal • Flex-T ek Blue Series sealed duct system and register box Increase pace of delivery and commercial impact
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25 25 Execute – operational excellence Smiths Excellence People and culture • Comprehensive review of culture • Strengthening talent development, skills roadmap, succession pipeline • Increased collaboration across Smiths • Smiths Values refreshed • Embedded and standardised • Focus on lean tools, enhanced manufacturing processes, automation and supply chain resilience Empowered businesses operating close to the customer, supported by a lean centre • Initiatives progressed • Delivered benefits of £20m • On track for £30-35m benefits in FY2027 Acceleration Plan Safety Customer Focus Respect Ownership Integrity
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26 26 Compound – a strong track record of successful M&A • Strong track record of value creating acquisitions • Reinvesting FCF to drive growth and scale • Repositioning the portfolio into higher-growth markets • Delivering: - Growth: double-digit CAGR 2017-26 - Returns: weighted average ROIC notably above WACC - Value creation 0 300 600 900 FY2017 FY2026 19.3% margin 21.0% margin £m revenue 60% 42% 20% 32% 20% 26% FY2024 FY2026 pro-forma Construction Thermal Solutions Aerospace Pro-forma split reflects headline revenue as if Smiths had acquired DRC at the beginning of the financial year
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27 27 Compound – reinvesting FCF to augment and compound growth Clear filters Strategic + financial fit Multiple vectors Broad actionable pipeline Enhancing value Integration delivers value creation Adjacencies • portfolio strength • technologies Capital light • growth accretive • margin • returns Leadership • resources • milestones • ownership Customer focus • commercial delivery Higher-quality growth Margin and cash accretion Returns above WACC John Crane • Aftermarket, product adjacencies, energy transition Flex-Tek Construction • Geographic, product adjacencies, commercial Thermal Solutions • Heating and cooling expansion and adjacencies Aerospace • Shipset expansion, MRO
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28 28 DRC – allocating capital into structurally faster-growing markets, with clear scalability DRC acquisition completed 1 April • Adds heat removal and cooling technologies to Flex-Tek • Exposure to data centre expansion and power generation back-up applications Significant growth potential • Integration underway, initial performance ahead of expectations • Investing to support significant growth • Expanding capacity: lean transformation, automation, advanced manufacturing capabilities • Further infrastructure investments: scaling for customer demand 10x >20% EBITDA acquisition multiple >20% Revenue growth FY2027 Accretive to Smiths margin 20-25% Market growth to 2030
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29 29 Sustainable growth, high returns, strong cash generation and balance sheet strength With clear competitive advantages and growth prospects T o meet evolving customer needs and support growth High-performing culture With a high proportion of aftermarket and recurring revenue Disciplined approach to capital allocation and growth investment A highly compelling investment case Premium industrial financial profile Strong market positions supported by structural growth trends Customer-centric operating model Driving innovation T argeting attractive growth opportunities and value-accretive M&A With capabilities that deliver competitive advantage
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Q&A
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31 Appendix
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32 32 Smiths Interconnect and Smiths Detection divestments completed Completed 31 March Completed 30 June Transforming Smiths into a focused, premium industrial engineering company SALE FOR £1.3bn - Representing 15.1x FY2025 EBITDA SALE FOR £2.0bn - Representing 12.5x FY2025 EBITDA
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33 33 Delivering enhanced returns to shareholders at pace Returning c.30% of market cap | £1.5bn yet to be returned • £500m share buyback • Completed December 2025 • Average price £20.46 FY2025 programme • £1bn share buyback • Completed September 2026 • Average price £25.17 • £1.5bn share buyback underway • To be substantially complete by end CY2027
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34 34 Sustainable growth, high returns and strong cash generation 8.3% 13.0% 5.9% 3.8% 1.2% FY22 FY23 FY24 FY25 FY26 Organic revenue growth (%) 18.0% 18.9% 19.8% 20.5% 20.6% FY22 FY23 FY24 FY25 FY26 Operating profit margin (%) 18.3% 22.4% 24.3% 24.2% 23.5% FY22 FY23 FY24 FY25 FY26 ROCE (%) 80% 106% 93% 96% FY22 FY23 FY24 FY25 FY26 Cash conversion (%) 97% (11.3%) 39.6% 8.3% 14.8% 12.0% FY22 FY23 FY24 FY25 FY26 Total Group EPS growth (%) 660 347 216 453 983 FY22 FY23 FY24 FY25 FY26 Shareholder returns (£m) * Figures are as reported and excluding restructuring charges except for FY24 and FY25 which have been restated for classification of Flex-Tek’s general industrial businesses as discontinued operations. Premium industrial financial profile
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35 35 81.9 2.0 6.4 (4.5) 85.8 2.7 (1.7) 86.8 FY2025 EPS Organic operating profit Share buyback Tax and interest Base EPS Acquisitions FX FY2026 EPS +6.0% reported growth 1 1. Predominantly relates to IFRS5 accounting – no depreciation or amortisation recorded for discontinued businesses, impacting EPS Earnings per share (pence) Smiths EPS growth driven by operating profit growth and share buyback
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36 36 Smiths – FY2027 technical guidance • Expect full-year FX headwind of ~1% on revenue and operating profit1 • For each $0.10 move, the annual operating profit impact is ~£16m • For each €0.10 move, the annual operating profit impact is ~£3m Currency Revenue exposure (Smiths) FY2026 average rate FY2025 average rate % change USD 55% 1.34 1.30 +3.2% EUR 11% 1.15 1.19 (3.0)% Financial guidance Forecast FY2027 Net finance expense ~£10-15m Effective tax rate 24-25% Capex ~£65m Pension contributions ~£10m Acquisition FY2026 revenue contribution Modular Metal Fabricators £13.4m Wattco £19.6m Duc-Pac £15.8m DRC £35.5m 1. Headline excludes non-headline items as defined in note 3 of the financial statements
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37 37 Bridge – reported to organic £m FY2025 Headline1 Foreign exchange Divestment FY2025 Organic2 Organic movement2 Acquisitions FY2026 Headline1 John Crane 1,115 (10) - 1,105 25 - 1,130 Flex-Tek 783 (22) - 761 (3) 49 807 Smiths 1,898 (32) - 1,866 22 49 1,937 Discontinued operations 1,438 (23) (286) 1,129 91 - 1,220 Total Group headline revenue 3,336 (55) (286) 2,995 113 49 3,157 John Crane 265 (4) - 261 9 - 270 Flex-Tek 169 (4) - 165 (7) 12 170 Central costs (46) 0 - (46) 5 - (41) Smiths 388 (8) - 380 7 12 399 Discontinued operations 192 (6) (34) 152 57 - 209 Total Group headline operating profit 580 (14) (34) 532 64 12 608 John Crane 23.8% 23.6% 23.9% Flex-Tek 21.6% 21.6% 20.4% Smiths 20.5% 20.3% 21.6% Discontinued operations 13.3% 13.6% 14.2% Total Group headline operating margin 17.4% 17.8% 18.1%
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38 38 FY2026 FY2025-2027 target UN Sustainable Development Goals (SDGs) Energy reduction1 5% 2% Renewable electricity 75% 80% reduction Scope 1 & 2 GHG2 emissions reductions3 20% 17.5% reduction Supplier engagement 35% 40% Normalised non-recyclable waste3 10% 5% reduction Normalised water use in stressed areas3,4 7% 5% reduction 1. The energy reduction target is expressed as the MWh energy consumed (excluding renewable electricity produced and consumed onsite), compared to a revenue-adjusted MWh baseline (excluding price growth within the measurement year), on a continuing basis 2. Scope 1, 2 and 3 GHG emissions calculated in accordance with the WRI/WBCSD Greenhouse Gas Protocol 3. Continuing operations including acquisitions against the FY2024 base year 4. Across seven identified water stressed areas ENVIRONMENTAL GOALS NET ZERO Scope 1 and 2 GHG2 emissions2040 2050 Scope 3 GHG2 emissions 7 7 13 12 12 Continued progress in sustainability AFFORDABLE AND CLEAN ENERGY CLIMATE ACTION AFFORDABLE AND CLEAN ENERGY RESPONSIBLE CONSUMPTION AND PRODUCTION RESPONSIBLE CONSUMPTION AND PRODUCTION 6 CLEAN WATER AND SANITATION
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39 39 Performance Plus Here Type 93AX coaxial separation seal Here Blue Series’ register box Here DRC Heat T ransfer Here Other resources