LONDON (dpa-AFX) - Engineering company Smiths Group Plc. (SMIN.L) reported third quarter organic revenue growth of 10.6%. 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. Momentum improved from the second quarter at both John Crane and Flex-Tek.
The company now expects to be towards the top end of its 6%-8% organic revenue growth guidance range and continues to expect margin expansion of 40-60 basis points for fiscal year 2025.
Smiths Group said it generates about 45% of its sales in the USA, with the significant majority produced within the USA. The company therefore expects the impact of tariffs to be limited given its local-for-local model, and through the deployment of mitigation actions which include accessing available exemptions; pricing actions and surcharges; and being flexible with alternative supply sources.
The company noted that fiscal year 2025 guidance incorporates the direct impact of the current tariffs in place. The Group is closely monitoring the potential indirect macroeconomic impact of tariffs on demand, inflation and supply chains, and has not seen any material changes in customer behaviour to date.
The company said it is progressing the separation processes of Smiths Interconnect and Smiths Detection and remains on track for an announcement of a sale of Smiths Interconnect by the end of calendar year 2025, followed by the separation of Smiths Detection by way of a UK demerger or sale.
The Group has successfully completed 260 million pounds of its planned 500 million pounds share buyback and continues to make steady progress. It remains on schedule to complete the full program by the end of the calendar year.
Smiths said it will publish its results for the year ending 31 July 2025 on 23 September 2025.
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