Smiths Profit Beats Forecasts as US Asbestos Liability Sale Process Begins

Key Facts

Smiths Group reported full-year headline operating profit of £399 million for the year ended July 31, 2026, up 1.9% organically and ahead of expectations. Continuing-operations revenue rose 2.1% to £1.937 billion, with organic revenue growth of 1.2%.

The group completed the disposals of Smiths Interconnect and Smiths Detection at a combined enterprise value of £3.3 billion, refocusing its portfolio on John Crane and Flex-Tek. Net cash stood at £1.747 billion on July 31, 2026, giving the group greater capacity to fund investment and return capital to shareholders.

John Crane has also begun marketing its legacy US asbestos liability for sale. Smiths said a successful transaction would remove the liability from its balance sheet, increase free cash flow and available capital, and reduce earnings volatility; it disclosed no buyer, price or completion timetable.

SMIN.L closed at 2,590 pence on September 21, 2026, matching its session high after trading between 2,532 and 2,590 pence. Higher expected cash generation and lower legal uncertainty could support valuation, but the share-price effect will depend on the transaction's terms and likelihood of completion.

Smiths expects about 4% organic revenue growth and a headline operating margin of about 21% in fiscal year 2027. Investors will therefore watch execution of the asbestos-liability process and whether John Crane and Flex-Tek can deliver the guidance against market conditions the group described as challenging.