Smiths Group sees FY revenue growth towards top end of guidance

(Sharecast News) - Smiths Group said on Tuesday that it now expects full-year revenue growth to be towards the top end of its guidance amid strong demand. The company said third-quarter organic revenue growth accelerated to 10.6%, leading to organic revenue growth of 9.6% for the nine-month period.

As a result, "reflecting this strong performance and momentum in the order book", it now expects organic revenue growth for the year to be towards the top end of its 6-8% guidance range and continues to expect margin expansion of 40-60 basis points for FY2025.

Smiths said the third-quarter performance reflected further growth across all businesses, with particularly strong organic revenue growth in Smiths Detection and Smiths Interconnect - a continuation of the trends seen in the first half.

At John Crane and Flex-Tex, momentum improved from the second quarter.

The diversified engineer, which generates around 45% of its sales in the US, also said that it expects the impact of tariffs to be limited given its local-for-local model, and through the deployment of mitigation actions.

Chief executive Roland Carter said: "Our strong performance has continued through the third quarter and all our businesses contributed to the double-digit organic revenue growth.

"This consistency of delivery has now underpinned successive earnings upgrades this year and multiple years of organic revenue growth for Smiths.

"We are executing on the strategic actions we announced in January with pace and purpose to unlock our inherent value and become a premium rated company, focusing on our world-class, high-performance John Crane and Flex-Tek businesses. The sale process for Smiths Interconnect is firmly underway and preparatory work for the Smiths Detection separation process is also moving forwards."