Smith & Nephew’s underlying full-year revenue grew slightly faster than guided , up 5.3% to $ 6.2bn. Growth was positive in all geographic segments and divisions.
Trading profit was up 15.5% to $1.2bn, in line with consensus forecasts, as productivity improvements more than offset challenges including tariffs and price pressure in China.
Free cash flow increased by 52% to $0.8bn, helped by a reduction in inventory. Net debt, including lease liabilities, was $2.8bn.
Underlying revenue growth guidance for 2026 remains at 6%. Trading profit is expected to grow organically by 8%. The implied margin is lower than expected, held back by external and internal headwinds and the initial impact of a recent acquisition.
The full-year dividend increased 4.3% to 39.1c per share. The $500bn buyback has been completed.
The shares fell 5.4% in early trading.
Our view
HL view to follow.
Smith & Nephew key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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