Smiths Group Plc (SMGKF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning everyone and thank you for joining us. Today I'll open with a reminder of our strategic actions that we announced in January and a few highlights of our fiscal year 2025 performance before handing over to Julian to walk through the numbers in more detail. I'll then come back to you to provide an update on our strategy. And as always, we'll have plenty of time for questions at the end. I would like to start by saying how pleased I am with the excellent progress we have made this year, operationally, financially and strategically. We are extending our track record of consistent financial performance and advancing the strategic plans we announced earlier this year to reposition Smith's and deliver significant value for all stakeholders. Turning to our strong financial performance, which came in ahead of our twice-raised guidance. Fiscal year 2025 marks our fourth consecutive year of organic revenue growth, with group organic revenue up 8.9% ahead of our 6-8% guidance. We expanded operating profit margins by 60 basis points at the top end of the guided range. we deployed capital in a disciplined and dynamic way with three accretive acquisitions, an enhanced share buyback, alongside a 5.1% dividend increase, marking 74 consecutive years of dividend payments. In January, we announced a number of strategic actions to unlock portfolio value and enhance returns. We are progressing the separation of Smith's interconnect and Smith's detection. And reflecting this, Smith's interconnect is reported as discontinued operations in our four-year results. The acceleration plan is progressing well. Initial benefits are being delivered and we remain on track for the full benefits in fiscal year 2027. We are well positioned for fiscal year 2026 with a strong order book and e...