Smiths Group plc (SMGZY) Q4 2026 Earnings Call Transcript

Smiths Group plc ( SMGZY ) Q4 2026 Earnings Call September 22, 2026 3:00 AM EDT Company Participants Roland Carter - CEO & Director Julian Fagge - CFO & Executive Director Conference Call Participants Christian Hinderaker - Goldman Sachs Group, Inc., Research Division Martin Wilkie - Citigroup Inc., Research Division Tore Fangmann - BofA Securities, Research Division Jonathan Hurn - Barclays Bank PLC, Research Division Presentation Roland Carter CEO & Director Good morning, everyone, and thank you for joining us for our fiscal year '26 results. 2026 has been a significant year in the company's 175-year history. We have executed the portfolio transformation, delivering on our commitments to create significant value for our shareholders. We have proactively supported our customers against the backdrop of challenging external market conditions, and we have invested in our businesses to deliver a resilient financial performance, both now and into the future. None of this would have been possible without our people. Thank you for your dedication, hard work and commitment. Moving to our agenda for today, I will start with the key highlights from the year. Julian will then take us through the financial results and the outlook for fiscal year '27. I will then return to outline the path to higher growth, further margin expansion and continuing value creation. We will then be pleased to take your questions. Fiscal year '26 was a year of significant strategic progress for Smiths. We completed the sales of Smiths Interconnect and Smiths Detection at very good prices, crystallizing GBP 3.3 billion of enterprise value. These transactions have repositioned Smiths as a focused premium industrial engineering company. We have a stronger financial profile, a clear strategy for growth around 4 vectors of accelerate, innovate, execute and compound, which I will explain more later. We have also made good progress high-grading our portfolio, exiting lower growth and margin businesses in Flex-Tek and adding exposure