Smiths Group Plc (SMGKF) Q3 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to the Smiths Q3 2026 Trading Update Conference Call. The call will be hosted by Julian Fagg, Chief Financial Officer at Smiths. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automatic message advising your hand is raised. To withdraw your question, please press star one and one again. Please, the advice of today's conference is being recorded. I would now like to hand the conference over to Julian Fagg, Chief Financial Officer at Smiths. Please go ahead. Thank you. Good morning and thank you for joining us today. Given the current market backdrop and in particular the conflict in the Middle East, we thought it was appropriate to hold a call to discuss our quarter three trading update. The missed organic revenue was flat in the quarter, resulting in growth of 0.2% for the first nine months. This was a resilient performance, considering the disruption in global energy markets, continued softness in U.S. construction, and against a tough comparator in FlexTech. In John Crane, organic revenue grew 3%. We began the quarter with a strong opening order book, and operational momentum. However, as a result of the conflict, revenue was negatively impacted by approximately £10 million due to two months of disruption. Encouragingly, our order book continued to strengthen, and we delivered a positive book to bill. In FlexTech, we performed in line with our expected quarterly phasing. In construction, performance reflected ongoing U.S. construction market weakness. However, we did see sequential improvement from the second quarter, which we expect to continue into quarter f...