Smiths Group Q3’26 Trading Update Conference Call - Feedback

Research evidence excerpt

Smiths Group Q3’26 Trading Update Conference Call - Feedback

C A Z E N O V E Europe Equity Research

21 May 2026

Smiths Group Overweight

SMIN.L, SMIN LN

Q3’26 Trading Update Conference Call - Feedback Price (20 May 26):2,481p

Price Target (Jun-27):2,810p

Smiths Group released its Q3’26 trading update this morning, for details please see European Capital Goods

ACour note. The questions on the call were largely on the Middle East impact, which Chitrita C Sinha

was signfiicant in Q3 and the disruption is expected to continue in Q4. The change (44-20) 7742-7176

in organic sales guidance from 3-4% to ~2% is driven exclusively by accounting chitrita.sinha@jpmorgan.com

for this disruption. Elsewhere, performance has been in-line with expectations. J.P. Morgan Securities plc

While Flex-tek delivered a 3.9% decline in the quarter, this was as expected and Phil Buller

management is confident in a Q4 pick-up. We summarise our key take-aways from (44-20) 3493-9403

phil.buller@jpmorgan.com

the post-results conference call. J.P. Morgan Securities plc

• Middle East. There are 10 facilities in the region that were significantly Akash Gupta

impacted in the quarter. The assumption is that this disruption continues in FY (44-20) 7742-7978

akash.z.gupta@jpmorgan.com

guidance. Customers are not in a position to accept orders or place normal order J.P. Morgan Securities plc

levels. The order impact has been in the aftermarket. Into 2027, it might take Jeremy Caspar

time for customers to come online and therefore the recovery will be gradual. (44-20) 3493-5188

Drop through in JC has been normal and shouldn’t impact the margin this year. jeremy.caspar@jpmorgan.com

• John-Crane by geography. The group has seen strength in Latin America and J.P. Morgan Securities plc

North America.