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Smith & Nephew PLC on Monday announced targets for 2028, aiming for revenue and profit growth, as it is set to meet its goals for 2025. The Watford, England-based medical device manufacturer said it is on track to meet its 2025 targets, expecting underlying revenue growth of around 5%. Trading profit margin now is expected to be at least 19.5%, within its guided range of 19.0% to 20.0%, and higher than 18.1% in 2024. For between 2025 and 2028, Smith & Nephew targets a 6% to 7% underlying revenue compound annual growth rate, and a 9% to 10% trading profit CAGR. The company upgraded its free cash flow guidance for 2025 to around $800 million, compared to $551 million in 2024. It anticipates a free cash flow of over $1 billion in 2028. Looking to 2026, Smith & Nephew guided for profit growth to be higher than revenue growth, citing operating leverage. It expects underlying revenue growth of around 6%. Free cash flow is expected to be $800 million, the same as in 2025. Chief Executive Officer Deepak Nath said: ‘Over the next three years, every business unit will contribute uniquely to our value creation. Sports Medicine, Advanced Wound Management and ENT [Ear, Nose & Throat] will drive above-market growth through innovation and disciplined execution, while Orthopaedics, operating in a more mature segment, will return to delivering market-level growth, supporting margin expansion, and enhanced returns. ‘Our growing free cash flow will enable ongoing investment in innovation and open new strategic opportunities, and we will empower our highly engaged workforce with world-class tools and processes.’ The company will release 2025 results on March 2. Smith & Nephew shares were up 0.9% at 1,276.50 pence each on Monday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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