Slide 1: Engineering a Better Future – FY2025 Results
ENGINEERING A BETTER FUTURE SMITHS GROUP PLC FY2025 RESULTS 23 SEPTEMBER 2025
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: Agenda
Agenda > Opening Remarks - Roland Carter > FY2025 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: FY2025 – strong financial performance; strategic actions underway to maximise value creation
FY2025 – strong financial performance; strategic actions underway to maximise value creation Strong performance, ahead of twice-raised growth guidance, extending our track record of growth & margin expansion Deployed capital in line with our allocation framework, with three value-accretive acquisiti
Slide 6: Progressing plan to focus Smiths as a high-performance industrial engineering company
Progressing plan to focus Smiths as a high-performance industrial engineering company High performance Customer centric with Strong, through- Disciplined capital technologies in flow leading positions in cycle financial track allocation with enhanced management and growing markets record with moment
Slide 7: Group FY2025 performance ahead of guidance
Group FY2025 performance ahead of guidance 0.28 Recordable incident rate1 + 8.9% Organic2 revenue growth + 60bps Organic2 operating profit 18.1% ROCE margin expansion to 17.4% + 14.8% 99% £ 121m £ 460m Basic EPS growth Operating cash Acquisitions Cash returned to conversion shareholders Good progres
Slide 8: FY2025 Financial Results
FY2025 Financial Results JULIAN FAGGE CHIEF FINANCIAL OFFICER 8
Slide 9: FY2025 – strong performance, ahead of guidance
FY2025 – strong performance, ahead of guidance FY2025 FY2024 Reported change Organic3 change Summary Group1 (Headline2) Revenue £3,336m £3,132m +6.5% +8.9% Operating profit £580m £526m +10.3% +13.1% - Strong revenue and operating profit growth Operating profit margin 17.4% 16.8% +60bps +60bps - Marg
Slide 10: Extending track record of Group organic revenue growth, averaging +7.4% over four years
Extending track record of Group organic1 revenue growth, averaging +7.4% over four years +3.8% +11.6% +5.4% +8.9% 13.5% 9.9% 9.1% 8.8% 6.8% 3.4% 4.1% 3.9% H1 H2 H1 H2 H1 H2 H1 H2 FY2022 FY2023 FY2024 FY2025 1. Organic is headline adjusted to exclude the effects of foreign exchange and acquisitions 1
Slide 11: Continued operating margin expansion, at top end of guided range
Continued operating margin expansion, at top end of guided range Operating margin (%) Margin movements +20bps 17.4% +30bps (50)bps 16.8% 17.X% - Operating leverage +60bps - Price in excess of inflation 16.8% (10)bps +10bps 16.2% - Smiths Excellence and other efficiency savings, +60bps organic margin
Slide 12: Strong EPS growth driven by operating performance
Strong EPS growth driven by operating performance Earnings per share (pence) +14.8% growth 2.6 2.0 1.2 126.2 14.9 121.2 (5.0) 105.5 +19.6% constant currency growth FY2024 EPS Organic Share Acquisitions Tax and Constant FX FY2025 EPS operating buyback interest currency profit EPS 12
Slide 13: Strong operating cash conversion and free cashflow
Strong operating cash conversion and free cashflow 86% FY23 cash conversion, up from 80% in FY22 FY2025 FY2024 Operating cashflow Actuals Working capital initiatives resulted in a £17m inflow in H2 £m £m Summary Targeted 97% plans and SES projects reducing 99%inventory Operating profit 580 526
Slide 14: Business Update
Business Update JOHN CRANE FLEX-TEK SMITHS DETECTION SMITHS INTERCONNECT 14
Slide 15: John Crane – H2 growth constrained by operational challenges
John Crane – H2 growth constrained by operational challenges; Q4 and order book support outlook Revenue Operating profit Business update £1,115m +3.0%1 £265m +6.3%1 - Revenue growth in H2 constrained by operational challenges, exacerbated by cyber incident - Sequential quarterly improvement from Q2,
Slide 16: Flex-Tek – solid growth despite challenging US construction market
Flex-Tek – solid growth despite challenging US construction market Revenue Operating profit Business update £837m +4.4%1 £164m (1.6)%1 - Outperformed US construction market and well positioned to benefit when market recovers - Industrial electrical heat revenue flat, reflecting Growth above market i
Slide 17: Smiths Detection – significant volume growth in aviation; continued margin expansion
Smiths Detection – significant volume growth in aviation; continued margin expansion Revenue Operating profit Business update £963m +15.2%1 £122m +23.3%1 - Aviation – now sold c.1,800 CTiX scanners with good win rate; FY2025 activity level to continue into FY2026, along with the aftermarket revenue
Slide 18: Smiths Interconnect – above expected growth driven by innovation and execution
Smiths Interconnect – above expected growth driven by innovation and execution Revenue Operating profit Business update £421m +22.5%1 £75m +57.2%1 - Above market growth in semi-test with key programme wins, particularly in AI - Strong growth in A&D with high demand for Strong execution in positive m
Slide 19: Disciplined use of capital
Disciplined use of capital Our capital allocation framework FY2025 highlights - Capex £76m Organic investment - RD&E £143m1 Strong balance sheet Value-accretive - £121m for acquisitions acquisitions - Three acquisitions in Flex-Tek in FY2025 £ Progressive - DPS +5.1% $ dividend policy - Dividend spe
Slide 20: Clear capital allocation priorities with enhanced returns
Clear capital allocation priorities with enhanced returns Our capital allocation framework - Ongoing capex to support growth and efficiency Organic investment - RD&E of 3-4% of sales Strong and efficient balance Value-accretive - Disciplined M&A focused on core and adjacencies sheet supporting acqui
Slide 21: FY2026 outlook
FY2026 outlook Continuing operations Tailwinds - Organic revenue growth of 4-6%, noting strong Q1 comparator - Continued strength in end markets – energy, aviation, aerospace - Continuing margin expansion - Strong order book and book to bill - Operating cash conversion of mid-nineties percent - New
Slide 22: Strategy Update
Strategy Update ROLAND CARTER CHIEF EXECUTIVE OFFICER 22
Slide 23: Strategic actions to unlock significant value and enhance returns to shareholders
Strategic actions to unlock significant value and enhance returns to shareholders Progressing separation processes Delivering above market growth Driving margin expansion Leveraging our strong foundations 23
Slide 24: Progressing separation of Smiths Interconnect and Smiths Detection
Progressing separation of Smiths Interconnect and Smiths Detection, with pace and purpose Announcement of FY2025 results with Smiths Expect Smiths separation of Interconnect reported as Interconnect Regulatory approval process, Smiths Interconnect discontinued operations announcement with completion
Slide 25: Smiths - a focused high-performance industrial engineering company
Smiths - a focused high-performance industrial engineering company VALUE CREATING STRATEGY Focused industrial engineering company BUSINESSES Specialising in high-performance technologies in flow management and thermal solutions John Crane 57% Flex-Tek 43% Clear competitive advantage Leading brands,
Slide 26: Leading positions in attractive, large and structurally growing end markets
Leading positions in attractive, large and structurally growing end markets Energy Industrial Construction End market CAGR1 ~4-5% ~4-5% ~4-5% Smiths key ~5% ~7% ~5% ~4% ~5% sub-segments ~5% CAGR 2025-351 Mechanical seals Industrial electric Mechanical Aerospace US residential and light commercial HV
Slide 27: Above market growth over the medium term, underpinned by significant recurring revenue
Above market growth over the medium term, underpinned by significant recurring revenue +5-7% - New sealing solutions - Aftermarket capabilities - OE: Industrial; - Geographical hydrogen; CCUS1 expansion - Deep customer - AM: digital-JC Sense, relationships reliability contracts - Large installed bas
Slide 28: Flex-Tek – delivered above-market growth in FY2025
Flex-Tek – delivered above-market growth in FY2025 Leverage existing portfolio Acquisitions compounding revenue growth - Increased sales of flexible ducting through widened distribution channels - Three acquisitions in FY2025 at ~25% operating profit margin Customer and commercial excellence - Broad
Slide 29: Driving margins towards our medium-term target range
Driving margins towards our medium-term target range Acceleration Plan - Total costs: £60-65m; £22m in FY2025, remainder in FY2026 - Total annualised benefits: £40-45m o/w ~1/2 in FY2026 - ~2/3 relate to Smiths - Increase aftermarket 21-23% - New geographies - Footprint optimisation - End to end pro
Slide 30: John Crane - operational excellence initiatives underpin growth and margin expansion
John Crane - operational excellence initiatives underpin organic revenue growth and margin expansion Operational excellence - Improved quality and customer satisfaction - Investing in automation and machining - More streamlined and resilient supply chain, - Standardising and automating technical red
Slide 31: Enhanced medium-term targets
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 FY2025 +3.6% n/a 19.6%2 +22.8% 98% Targets support a pre
Slide 32: Enduring foundations underpin our success
Enduring foundations underpin our success - Pioneers of progress Our purpose - Engineering a better future: we drive efficiency for customers in mission-critical situations Our people - Continue to invest in, empower and support our teams and culture - Focused on integrity, respect, excellence and O
Slide 33: Strong progress in FY2025
Well positioned to deliver superior value over the medium and long term Strong Growth- 5-7% through cycle 21-23% progress focused Organic revenue growth Operating profit margin in FY2025 - Extending our track Cash ~100% >20% record of consistent generative Operating cash conversion ROCE financial pe
Slide 34: Q&A
smiths Q&A
Slide 35: Appendix
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Slide 36: Continuing operations FY2026 guidance
Continuing operations FY2026 guidance Revenue exposure FY2025 FY2024 Currency % change (Continued operations) average rate average rate USD 51% 1.30 1.26 +3.2% - Expect FX headwind EUR 14% 1.19 1.17 +1.8% of ~3% on FY25 revenue and ~3% on Translation impact FY2025 operating profit2 Revenue £(108)m o
Slide 37: Bridge – reported to organic
Bridge – reported to organic £m - Smiths Group FY2024 Headline1 Foreign exchange FY2024 Organic2 Organic movement2 Acquisitions FY2025 Headline1 John Crane 1,133 (50) 1,083 32 - 1,115 Flex-Tek 786 (24) 762 34 41 837 Smiths Detection 859 (23) 836 127 - 963 Continuing operations 2,778 (97) 2,681 193 4
Slide 38: Group income statement
Group income statement Reported £m FY2025 FY2024 change - Acceleration Plan costs Revenue 3,336 3,132 +6.5% of £22m Group headline1 operating profit 580 526 +10.3% - Separation costs of Amortisation of acquisition related intangible assets (52) (49) £18m Legacy pension scheme arrangements (4) (10) -
Slide 39: Delivering results in sustainability
Delivering results in sustainability UN Sustainable FY2025-2027 FY2025 target Development ENVIRONMENTAL GOALS Goals (SDGs) > LINKED TO REMUNERATION NET ZERO Energy reduction1 3.5% 2% in FY2025 7 AFFORDABLE AND CLEAN ENERGY 2040 Scope 1 and 2 GHG2 emissions Scope 1 & 2 GHG2 emissions reductions3 9.7%