Smiths Group H1 Profit Up 5.6% to £248m; £1.5bn Return Planned
Smiths Group’s H1 operating profit rose 5.6% to £248m on 2.2% revenue growth to £1.437bn, while interim dividend jumped 5.4% to 15p. Sales of Detection and Interconnect units at £2bn and £1.3bn, respectively, create £3.3bn EV, underpinning a planned £1.5bn shareholder return.
1. H1 Financial Results
Smiths Group reported H1 headline operating profit of £248 million, a 5.6% increase from last year, on revenue of £1.437 billion, up 2.2%. Interim dividend rose 5.4% to 15p per share, payable May 13.
2. Divestments and Valuations
The group agreed to sell Smiths Detection to CVC for £2.0 billion at a 16.3x FY2025 multiple and Interconnect to Molex for £1.3 billion at 15.1x, creating a combined enterprise value of £3.3 billion. Detection is expected to close in H2 2026 and Interconnect is nearing completion.
3. Shareholder Returns Plan
Following a completed £500 million buyback and £307 million executed under a £1 billion programme, Smiths plans an additional £1.5 billion return via a structured tender offer or special dividend and further buybacks after the Detection sale.
4. Balance Sheet and Outlook
Net debt rose to £843 million, 1.2x EBITDA, with operating cash conversion at 78%. The group forecasts full-year organic revenue growth of 3–4% and 20% margin, targeting 5–7% H2 growth, noting potential Iran conflict impacts not yet factored into guidance.