Slide 1: FY2026 results
Smiths Group plc FY2026 results 22 September 2026 1
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that By their nature, these statements involve uncertainty are forward-looking statements. They appear in a since future events and circumstances can cause number of places throughout this presentation and results and developments to differ ma
Slide 3: Agenda
Agenda Opening remarks Roland Carter FY2026 Financial results Julian Fagge Strategy update Roland Carter Q&A 3
Slide 4: Opening remarks
Opening remarks Roland Carter Chief Executive Officer 4
Slide 5: Significant strategic progress, strengthening focus on higher growth and margin
Significant strategic progress, strengthening focus on higher growth and margin Significant strategic progress Strategy for growth A focused, premium and value creation - Transforming the company industrial engineering company - Accelerate - Execute - Unlocking £3.3bn of value - Innovate - Compound
Slide 6: FY2026 Financial results
FY2026 Financial results Julian Fagge Chief Financial Officer 6
Slide 7: Resilient financial performance
Resilient financial performance • Resilient organic revenue FY2026 FY2025 Reported change Organic3 change performance despite challenging energy and construction markets Continuing operations: Smiths1 (Headline2) Revenue £1,937m £1,898m +2.1% +1.2% • Organic margin expansion +20bps, alongside contin
Slide 8: Resilient organic revenue growth, enhanced with high-growth acquisitions
Resilient organic1 revenue growth, enhanced with high-growth acquisitions • Resilient John Crane growth despite £20m Middle East impact • Strong aerospace growth with Organic growth successful contract renewals Acquisition growth • Challenging US residential construction market +3.8% • Positive cont
Slide 9: Operating margin expansion with good operating profit growth
Operating margin expansion with good operating profit growth • Lower volume reflects Smiths operating margin (%) challenging market conditions 20.5% +180bps 20.6% +10bps • Strong pricing power (20)bps • Increase in strategic growth +20bps investments (80)bps • Small impact from tariffs (50)bps • Acc
Slide 10: Strong EPS growth reflecting operating profit growth and share buyback
Strong EPS growth reflecting operating profit growth and share buyback Earnings per share (pence) +12.0% reported growth 2.7 1.5 10.1 135.3 135.7 (1.0) (3.8) 3.5 121.2 1.5 FY2025 EPS Smiths Discontinued Share Tax and Base Acquisitions Adjustment FX FY2026 EPS organic operations buyback interest EPS
Slide 11: Strong operating cash conversion
Strong operating cash conversion • 96% operating cash Operating cashflow conversion1 97% OCC1 96% OCC1 11 • Capex ahead of 377 (1) 7 12 384 depreciation reflecting (22) continued investment in growth and efficiency • Working capital outflow FY2025 Operating D&A Other Working Capex FY2026 reflects hi
Slide 12: Business update
Business update John Crane Flex-Tek 12
Slide 13: John Crane
John Crane Revenue Operating profit £1,130m +2.3%1 £270m +3.5%1 Aftermarket 70% OE 30% Energy - Original equipment: +4.1% Energy 63% Industrial 37% +2.5%: - Aftermarket: +1.9% Operating margin 23.9% +30bps1 Industrial - Original equipment: +4.8% +2.0%: - Aftermarket: +0.4% • Resilient growth against
Slide 14: Middle East in focus
Middle East in focus Current environment Recovery phase Longer-term Operating environment • Slower order intake • Start of recovery, mainly in • Increased prioritisation of aftermarket energy security and resilience • Postponement of capex • Gradual resumption of large • Driving higher investment •
Slide 15: Flex-Tek
Flex-Tek Revenue Operating profit £807m (0.4)%1 £170m (4.2)%1 Construction 45% Aerospace 28% Thermal 27% Construction: (3.6)% Operating margin Thermal Solutions: (6.2)% Aerospace: +10.6% 21.0% (80)bps1 • Construction – challenging US market but continuing to drive for growth • Thermal Solutions – im
Slide 16: Our capital allocation framework
Our capital allocation framework – deploying cashflow to deliver growth and returns Organic Value-accretive Portfolio Progressive Enhanced investment acquisitions management dividend policy shareholder returns • RD&E 3-4% of revenue • Higher-growth market • Divest non-core assets • Average growth of
Slide 17: FY2027 outlook
FY2027 outlook Smiths John Crane Flex-Tek • Organic revenue growth of c.4% • Growth weighted towards H2 • Growth weighted towards H1 • Headline operating profit margin c.21% • Robust order book with strong order intake • Assumes subdued US construction market; • Operating cash conversion of low 90%s
Slide 18: Strategy update
Strategy update Roland Carter Chief Executive Officer 18
Slide 19: Portfolio focused on strategic growth pillars
Portfolio focused on strategic growth pillars John Crane Flex-Tek Flow Control Construction Thermal Solutions Aerospace 58% 19% 11% 12% % of FY2026 revenue 19
Slide 20: Well positioned in attractive markets supported by structural growth trends
Well positioned in attractive markets supported by structural growth trends Energy demand Housing availability Industrial Aviation and energy security and affordability electrification growth ~5%1 ~5%1 ~6%1 ~4%1 • Energy security, resilience and • US housing shortage • Industrial decarbonisation and
Slide 21: Customer-centric operating model with high-quality aftermarket and recurring revenue
Customer-centric operating model with high-quality aftermarket and recurring revenue John Crane Flex-Tek Providing • Prime contracting relationship • LT distributor relationships in with customers through product Construction Customer intimacy lifecycle • Customised heating solutions in partnership
Slide 22: Smiths Growth Algorithm
Smiths Growth Algorithm Strong conviction in our through- cycle medium-term targets Accelerate Innovate Organic growth through To meet customer needs, drive 5-7% organic revenue growth maximising the core and targeted customer intimacy and deliver investment into new opportunities growth 21-23% oper
Slide 23: Accelerate – commercial initiatives and investment to drive sustainable organic growth
Accelerate – commercial initiatives and investment to drive sustainable organic growth John Crane Flex-Tek Flow Control Construction Thermal Solutions Aerospace Core portfolio Strong distributor relationships Customised solutions Contract renegotiation • New major contracts in LNG and NGL • Cross-se
Slide 24: Innovate – enhanced approach to drive differentiation and profitable growth
Innovate – enhanced approach to drive differentiation and profitable growth Technology Products Materials Process Improved manufacturing New and differentiated Metals, coatings, polymers to New technologies for more processes to reduce labour, product development and meet and enhance product demandi
Slide 25: Execute – operational excellence
Execute – operational excellence Smiths Excellence Acceleration Plan People and culture • Embedded and standardised • Initiatives progressed • Comprehensive review of culture • Focus on lean tools, enhanced • Delivered benefits of £20m • Strengthening talent development, skills manufacturing process
Slide 26: Compound – a strong track record of successful M&A
Compound – a strong track record of successful M&A • Strong track record of value £m revenue Aerospace creating acquisitions Thermal Solutions • Reinvesting FCF to drive growth 900 21.0% Construction margin and scale • Repositioning the portfolio into 20% 26% higher-growth markets 600 • Delivering:
Slide 27: Compound – reinvesting FCF to augment and compound growth
Compound – reinvesting FCF to augment and compound growth Clear filters Multiple vectors Enhancing value Strategic + financial fit Broad actionable pipeline Integration delivers value creation Adjacencies • portfolio strength • technologies John Crane Leadership • resources • milestones • ownership
Slide 28: DRC – allocating capital into structurally faster-growing markets
DRC – allocating capital into structurally faster-growing markets, with clear scalability DRC acquisition completed 1 April Significant growth potential • Adds heat removal and cooling • Integration underway, initial performance technologies to Flex-Tek ahead of expectations • Exposure to data centr
Slide 29: A highly compelling investment case
A highly compelling investment case Strong market positions Customer-centric Premium industrial supported by structural operating model financial profile growth trends Sustainable growth, With clear competitive With a high proportion high returns, strong advantages and of aftermarket and cash genera
Slide 30: Q&A
Q&A smuths
Slide 31: Appendix
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Slide 32: Smiths Interconnect and Smiths Detection divestments completed
Smiths Interconnect and Smiths Detection divestments completed SALE FOR SALE FOR £1.3bn £2.0bn - Representing 15.1x FY2025 EBITDA - Representing 12.5x FY2025 EBITDA Completed 31 March Completed 30 June Transforming Smiths into a focused, premium industrial engineering company 32
Slide 33: Delivering enhanced returns to shareholders at pace
Delivering enhanced returns to shareholders at pace FY2025 programme • £500m share buyback • £1bn share buyback • £1.5bn share buyback underway • Completed December 2025 • Completed September 2026 • To be substantially complete • Average price £20.46 • Average price £25.17 by end CY2027 Returning c.
Slide 34: Premium industrial financial profile
Premium industrial financial profile Sustainable growth, high returns and strong cash generation Organic revenue growth (%) ROCE (%) Total Group EPS growth (%) 13.0% 22.4% 24.3% 24.2% 23.5% 18.3% 39.6% 8.3% 5.9% 1.2% 3.8% 14.8% 12.0% 8.3% (11.3%) FY22 FY23 FY24 FY25 FY26 FY22 FY23 FY24 FY25 FY26 FY2
Slide 35: Smiths EPS growth driven by operating profit growth and share buyback
Smiths EPS growth driven by operating profit growth and share buyback Earnings per share (pence) +6.0% reported growth 6.4 2.7 85.8 86.8 2.0 (4.5) (1.7) 81.9 FY2025 EPS Organic Share Tax and Base Acquisitions FX FY2026 EPS operating buyback interest EPS 1 profit 1. Predominantly relates to IFRS5 acc
Slide 36: Smiths FY2027 technical guidance
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
Slide 37: Bridge – reported to organic
Bridge – reported to organic FY2025 Foreign FY2025 Organic FY2026 £m Divestment Acquisitions Headline1 exchange Organic2 movement2 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) 1,12
Slide 38: Continued progress in sustainability
Continued progress in sustainability UN Sustainable ENVIRONMENTAL GOALS FY2025-2027 FY2026 Development target Goals (SDGs) NET ZERO Energy reduction1 5% 2% 7 AFFORDABLE AND CLEAN ENERGY 2040 Scope 1 and 2 GHG2 emissions 80% Renewable electricity 75% reduction 7 AFFORDABLE AND CLEAN ENERGY 2050 Scope
Slide 39: Other resources
Other resources Performance Plus Type 93AX coaxial Here separation seal Here Blue Series’ register box DRC Heat Transfer Here Here 39