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Smiths Group PLC on Thursday lowered its revenue guidance for the current financial year due to the impact of the conflict in the Middle East. The London-based engineering company said it now expects organic revenue growth of around 2% in the financial year to the end of July. It previously guided for organic revenue growth between 3% and 4%, excluding any impact from the conflict in the Middle East. It now expects the headline operating profit margin to be ‘slightly above’ 20%, up from 17.4% in financial 2025. The firm previously guided the operating profit margin to be around 20%. Smiths Group said organic revenue growth was flat in the third quarter to May 2, leading to 0.2% growth for the nine-month period. ‘This performance was achieved in the context of the disruption in global energy markets, a subdued US construction market and a strong comparator in Flex-Tek,’ the firm said. Reported revenue for the quarter included a 2.1% benefit from acquisitions, and 1.6% in the nine-month period. In the John Crane unit, organic revenue was up 2.8%. Revenue was impacted by £10 million after two months of disruption from the Middle East conflict, Smiths Group said. Flek-Tek organic revenue fell 3.9% against a high-single-digit prior year comparator. Smiths Group noted that the conflict creates ‘near-term headwinds’, but also creates opportunity for ‘incremental investment’ as the region rebuilds. The Middle East region represents around 7% of revenue for Smiths Group, primarily from John Crane. ‘Whilst this moderates growth in the near term, it is set against a backdrop of increasing global demand for energy security and resilience, and we are well positioned to support our customers. This underpins our confidence in the strength of our medium-term growth outlook,’ said Chief Executive Officer Roland Carter. ‘We continue to make good progress reshaping the portfolio, deploying capital with discipline and investing to drive sustainable growth and long-term shareholder value.’ Shares in Smiths Group were up 0.2% at 2,485.00 pence on Thursday morning in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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