Smiths Group shares rise after £3.3bn division sales

Smiths Group shares rose 4% following a major portfolio overhaul that included the sale of its Smiths Detection and Smiths Interconnect divisions for £3.3 billion. The restructuring leaves the engineering firm focused on its flow-control specialist, John Crane, and its thermal and aerospace business, Flex-Tek.

The company reported organic revenue growth of 1.2% to £1.94 billion and guided to approximately 4% organic revenue growth for the upcoming financial year. Management also expects operating margins to reach a medium-term target range of 21% to 23%.

To reward shareholders, Smiths Group has completed £1.5 billion in share buybacks and announced a further £1.5 billion earmarked for returns by the end of 2027. The company also raised its dividend by 5.4%, marking its 75th consecutive year of increases. Additionally, the group acquired DRC Heat Transfer for £165 million to expand its presence in the data-center cooling market.