Smiths Group Raises Full-Year Revenue Guidance, Shares Surge

Shares of Smiths Group (LON: SMIN) surged Wednesday morning after the engineering group reported a strong first-quarter performance and raised its full-year revenue guidance.

The stock has jumped significantly, currently up more than 14% at 1,741p a share. Earlier in the session, it hit a high of 1,895p.

The company reported organic revenue growth of 15.8% for the three months to 1 November 2024, significantly ahead of the 3.5% growth in the same period last year.

The strong performance was driven by growth across all of its businesses, with Smiths Interconnect being the standout performer, delivering organic revenue growth of over 30%.

As a result of the strong start to the year and a record order book, Smiths Group raised its 2025 full-year organic revenue growth guidance to 5-7% from the previous 4-6%. The analyst consensus for FY25 organic revenue growth is 5.5%.

The group also expects a 40-60 basis point expansion in operating profit margin in FY2025, on a good trajectory towards its medium-term margin target.

The company has also announced the resumption and an increase in its share buyback programme from £100 million to £150 million, reflecting its strong balance sheet, cash flow dynamics and considered approach to capital allocation.  

Smiths Group CEO Roland Carter commented: “We entered our new financial year with a strong order book, driving a very positive first quarter and with all our businesses contributing to the double-digit organic revenue growth. This gives us the confidence to raise our full-year guidance for organic revenue growth and margin.”