Slide 1: Engineering a Better Future – HY2026 Results
ENGINEERING A BETTER FUTURE SMITHS GROUP PLC HY2026 RESULTS 20 MARCH 2026
Slide 2: Disclaimer
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 (
Slide 3: Opening Remarks
Opening Remarks ROLAND CARTER CHIEF EXECUTIVE OFFICER 3
Slide 4: Agenda
Agenda > Opening Remarks - Roland Carter > HY2026 Financial Results - Julian Fagge > Strategy Update - Roland Carter > Q&A 4
Slide 5: Excellent strategic progress, strengthening focus on higher growth and margin
Excellent strategic progress, strengthening focus on higher growth and margin Strong execution delivering value through the sale of Smiths Interconnect and Smiths Detection for £3.3bn Delivered a solid financial performance, consistent with expectations and with positive momentum into second half Di
Slide 6: HY2026 Financial Results
HY2026 Financial Results JULIAN FAGGE CHIEF FINANCIAL OFFICER 6
Slide 7: HY2026 – solid financial performance
HY2026 – solid financial performance HY2026 HY2025 Reported change Organic3 change Group1 (Headline2) Summary Revenue £1,437m £1,406m +2.2% +4.0% Operating profit £248m £234m +5.6% +7.2% - Solid revenue growth with Operating profit margin 17.2% 16.7% +50bps +50bps momentum building and continuing ma
Slide 8: Solid organic revenue growth, enhanced with acquisitions
Solid organic1 revenue growth, enhanced with acquisitions Group Summary +2.0% +1.5% - Momentum building in John Crane with strong Q2 energy performance +0.9% - Strong aerospace offset by weak US construction market at Flex-Tek +7.1% +7.2% +4.0% - Strong Smiths Detection delivery, driven by aviation
Slide 9: Continuing operating margin expansion
Continuing operating margin expansion Group operating margin (%) Margin movements (10)bps (60)bps +70bps 17.2% 16.7% 16.7% 17.X% - Operating leverage and mix +10bps +30bps benefits +20bps 16.8% (10)bps - Positive pricing offsetting inflation in John Crane; more limited pricing +50bps organic margin
Slide 10: EPS growth driven by operating profit growth and share buyback
EPS growth driven by operating profit growth and share buyback Earnings per share (pence) +11.7% growth 3.5 3.1 62.0 3.3 60.1 0.6 55.5 (2.2) (1.8) +8.4% constant currency growth HY2025 EPS Organic Share Tax and Constant Acquisitions Adjustment FX HY2026 EPS operating buyback interest currency for 1
Slide 11: Good operating cash conversion reflects decision to increase inventory
Good operating cash conversion reflects decision to increase inventory 86% FY23 cash conversion, up from 80% in FY22 HY2026 HY2025 Operating cashflow Actuals Working capital initiatives resulted in a £17m inflow in H2 £m £m Summary Operating profit 295 269 Targeted 94% plans and SES projects r
Slide 12: Business Update
Business Update JOHN CRANE FLEX-TEK 12
Slide 13: John Crane – strong Q2 providing momentum and order book support
John Crane – strong Q2 providing momentum and order book support mid-single-digit H2 growth Revenue Operating profit Business update £551m +2.0%1 £128m +4.2%1 - Improving momentum through first half with mid-single-digit growth in Q2 - Growth led by Energy, especially LatAm, despite Growth led by ro
Slide 14: Flex-Tek – strong aerospace growth offset by challenged construction market
Flex-Tek – strong aerospace growth offset by challenged construction market Revenue Operating profit Business update £364m (2.0)%1 £74m (4.6)%1 - Construction decline reflects challenged market and strong comparator; well positioned to benefit when market recovers Continued weak construction market
Slide 15: Disciplined use of capital
Disciplined use of capital Our capital allocation framework Total Group HY2026 highlights - Capex £29m Organic investment - RD&E £72m1 Strong balance sheet Value-accretive - £164m for DRC Heat Transfer acquisition post H1 acquisitions £ Progressive - Dividend spend of £104m $ dividend policy - Inter
Slide 16: FY2026 outlook updated to exclude discontinued operations
FY2026 outlook updated to exclude discontinued operations SMITHS - Organic revenue growth of 3-4% - Expect H2 growth within medium-term 5-7% target range - Headline operating profit margin c.20% - Operating cash conversion of low to mid-nineties percent Impact of Iran conflict and heightened uncerta
Slide 17: Strategy Update
Strategy Update ROLAND CARTER CHIEF EXECUTIVE OFFICER 17
Slide 18: Strategic actions to unlock significant value and enhance returns to shareholders
Strategic actions to unlock significant value and enhance returns to shareholders Excellent strategic processes Well positioned to drive above market growth Driving margin expansion Leveraging our strong foundations 18
Slide 19: Value-creating transactions for Smiths Interconnect and Smiths Detection
Value-creating transactions for Smiths Interconnect and Smiths Detection Sale agreed for£1.3bn EV £2bn Sale agreed for EV representing 15.1x FY2025 EBITDA representing 12.5x FY2025 EBITDA Sale approaching completion On track for completion by end CY2026 19
Slide 20: Enabling enhanced returns to shareholders
Enabling enhanced returns to shareholders CY2025 CY2026 CY2027 £500m share buyback • 77% of Smiths Interconnect proceeds • Intend to return £1.5bn being returned of Smiths Detection proceeds Completed • £1bn share buyback commenced December 2025 • Combination of a 3 December 2025 structured return (
Slide 21: Smiths - a focused industrial engineering company
Smiths - a focused industrial engineering company • Specialising in high-performance products in flow control and thermal solutions • Positioned in attractive, growing markets supported by global megatrends • Supplying leading products, services and solutions, underpinned by common capabilities with
Slide 22: Portfolio focused on strategic growth pillars supported by structural megatrends
Portfolio focused on strategic growth pillars supported by structural megatrends JOHN CRANE FLEX-TEK Flow Highly engineered products Construction Thermal Solutions Aerospace and services for energy Control and process industries Multi-ducting & tubing for HVAC in construction Industrial process heat
Slide 23: Driving above-market growth through strategic growth initiatives
Driving above-market growth through strategic growth initiatives JOHN CRANE FLEX-TEK Flow Control Construction Thermal Solutions Aerospace - Drive core portfolio and benefit from - Drive the core portfolio - Grow in this fast growth - Target new aircraft / engine leadership position in gas investmen
Slide 24: Actioning our growth levers to drive above market growth
Actioning our growth levers to drive above market growth +5-7% +4-5% Market Leverage existing Customer & Adjacencies Medium-term growth portfolio commercial excellence Innovation (organic & inorganic) financial target - John Crane multi-year Performance Plus - Type 93AX Coaxial - Expanding HVAC agre
Slide 25: Flex-Tek – expanding into high growth adjacencies with acquisition of DRC Heat Transfer
Flex-Tek – expanding into high growth adjacencies with acquisition of DRC Heat Transfer Agreement to acquire DRC Heat Transfer Extends Flex-Tek offering into high growth adjacencies - Designer and manufacturer of custom heat transfer and - Adds heat removal and cooling technologies to Flex-Tek’s coo
Slide 26: Actioning our initiatives to drive margin expansion
Actioning our initiatives to drive margin expansion Updated Acceleration Plan for Smiths John Crane initiatives • Americas operations footprint rationalisation £30-35m potential annualised benefits • Global Business Services and processes in FY2027 and beyond, • Global ERP standardisation of which a
Slide 27: Enhanced medium-term targets – reflecting further growth and higher return profile
Enhanced medium-term targets – reflecting further growth and higher return profile Through cycle from FY2027 +M&A 21-23% >20% ~100% +M&A >10% 5-7% Organic revenue EPS growth Operating profit margin ROCE Operating cash growth1 conversion Smiths HY2026 +0.4% n/a 19.8%2 +23.5% 76% Targets support a pre
Slide 28: Enduring foundations underpin our success
Enduring foundations underpin our success Innovation-led Committed to growth operational excellence Driving a high- Underpinned by performing culture our Smiths Values 28
Slide 29: A growth and returns focused premium industrial engineering company
A growth and returns focused premium industrial engineering company Excellent Solid H1 Disciplined Focused strategic > performance, > capital > portfolio progress with momentum allocation - Sale of Smiths Detection - Momentum into H2 and - Investing in innovation - Strategic growth pillars and Smith
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Slide 31: Appendix
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Slide 32: Smiths – continuing operations: FY2026 technical guidance
Smiths – continuing operations: FY2026 technical guidance Revenue exposure HY2026 HY2025 Currency % change (Continued operations) average rate average rate USD 54% 1.34 1.28 +4.5% - Expect full-year EUR 11% 1.15 1.19 (3.8)% FX headwind of ~3% on revenue and Translation impact HY2026 ~3.5% on operati
Slide 33: Bridge – reported to organic
Bridge – reported to organic HY2025 Foreign Organic HY2026 £m Divestment HY2025 Organic2 Acquisitions Headline1 exchange movement2 Headline1 John Crane 551 (11) - 540 11 - 551 Flex-Tek 373 (14) - 359 (7) 12 364 Smiths 924 (25) - 899 4 12 915 Discontinued operations 684 (17) (18) 649 62 - 711 Total G
Slide 34: Total Group income statement
Total Group income statement Reported £m HY2026 HY2025 change - Acceleration Plan costs Revenue 1,626 1,608 +1.1% of £14m (£8m Smiths) Total Group headline1 operating profit 295 269 +9.6% - Separation costs of Amortisation of acquisition related intangible assets (21) (27) £20m Legacy pension scheme