British engineering firm Smiths Group on Tuesday reported full-year revenue and profit that beat its own upgraded forecasts and said it was making good progress on its plan to separate two of its major divisions.
For the year ended July 31, the company posted group revenue of 3.34 billion British Pounds, an organic increase of 8.9%, while headline operating profit rose 13.1% on an organic basis to 580 million British Pounds.
Smiths Group is moving forward with plans to divest its Smiths Interconnect and Smiths Detection units to focus on its industrial engineering business.
The company said it expects to announce a sale of the Smiths Interconnect division, which has now been classified as a discontinued operation, by the end of December 2025.
The separation of the Smiths Detection security screening business will follow, either through a sale or a demerger, according to the company.
"FY2025 has been a pivotal year and the strategic actions we have announced to focus Smiths as a world-class industrial engineering company to unlock significant value and enhance returns to shareholders are well underway," Chief Executive Officer Roland Carter said in a statement.
Looking ahead, the company said it expects organic revenue growth of 4% to 6% for its continuing operations in fiscal 2026.
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Smiths Group PLC has agreed to sell its Smiths Interconnect division to Molex, a subsidiary of Koch Industries, for an enterprise value of 1.3 billion British Pounds.