Financial Data and Key Metrics Changes - Organic revenue growth for FY 2024 was 5.4%, with acquisitions contributing an additional 2%, while foreign exchange (FX) had a negative impact of 4.3%, resulting in reported growth of 3.1% [7][8] - Operating profit increased to GBP 526 million, reflecting a 7.1% organic growth, and operating margin improved by 30 basis points [7][9] - Basic EPS growth was 8.3%, with constant currency EPS growth at 12.9% [7][9] - Operating cash conversion improved by 11 percentage points to 97%, and return on capital employed (ROCE) rose by 70 basis points to 16.4% [7][9] Business Line Data and Key Metrics Changes - **John Crane**: Achieved organic revenue growth of 9.8%, with strong performance in energy and aftermarket sales, particularly in the Middle East and Latin America [11][12] - **Detection**: Delivered organic revenue growth of 11.1%, with a 25% increase in original equipment (OE) sales in Aviation, driven by strong demand for CT airport checkpoint scanners [14][16] - **Flex-Tek**: Experienced a slight organic revenue decline of 0.8%, but improved performance in the second half, with aerospace sales growing nearly 11% [18][19] - **Smith Interconnect**: Organic revenue declined by 6.5%, with a 17.8% drop in organic operating profit and a contraction of 190 basis points in operating margin [21][22] Market Data and Key Metrics Changes - The current checkpoint upgrade globally is estimated to be about 45% complete, indicating continued demand for the next three years [15] - John Crane's order intake growth supports a positive outlook for FY 2025, with a strong order book across various segments [12][13] - Flex-Tek's performance is closely tied to the recovery of the U.S. housing market, which is a key determinant for future growth [18] Company Strategy and Development Direction - The company aims to create value through a focused strategy that includes investing in technology and engineering for competitive differentiation and pursuing growth in attractive markets [2][28] - An acceleration plan is being initiated to enhance operating margins and improve productivity, with an investment of GBP 60 million to GBP 65 million over the next two years [4][44] - The company is committed to maintaining a strong balance sheet to support growth and is focused on maximizing profitable growth in core markets while exploring new growth accretive adjacencies [50][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the medium-term guidance due to strong order books and ongoing demand across various divisions [56][57] - The company anticipates organic growth within the medium-term target range of 4% to 6% for FY 2025, supported by strong demand and good order visibility [25][50] - Continued margin expansion is expected, driven by operational leverage and benefits from the Smiths Excellence System [26][50] Other Important Information - The company announced two strategic acquisitions for Flex-Tek, enhancing its HVAC and industrial heating platforms, with a combined purchase price of GBP 95 million [19][20] - A final dividend of 30.2p is recommended, resulting in a total full-year dividend of 43.75p, reflecting a 5.2% increase [8][24] - The company has committed to net zero for Scope 1 and 2 emissions by 2040 and Scope 3 by 2050, with ongoing efforts to reduce greenhouse gas emissions [48][49] Q&A Session Summary Question: Current trading and orders across divisions - Management noted consistent performance and strong order book growth across divisions, particularly in John Crane and Flex-Tek, despite some challenges in Interconnect and Flex-Tek [56][57] Question: John Crane's performance and outlook - Orders in John Crane were strong, with softness noted in the industrial segment, particularly chemicals, but overall confidence in recovery was expressed [61] Question: Capital allocation and buyback strategy - The company is being disciplined in capital allocation, with a focus on R&D, M&A, and buybacks, but has not yet initiated the second tranche of buybacks due to an active M&A pipeline [60][68]

Investors looking for stocks in the Technology Services sector might want to consider either Smiths Group PLC (SMGZY) or Palantir Technologies Inc. (PLTR) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with stron ...

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits. Right now, Smiths Group PLC is sporting a Zacks Rank of #2 (Buy), while Amplitude, Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so inve ...

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits. Another notable valuation metric for SMGZY is its P/B ratio of 2.60. The P/B is a method of comparing a stock's market ...

Investors interested in Technology Services stocks are likely familiar with Smiths Group PLC (SMGZY) and Thomson Reuters (TRI) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. Smiths Group PLC has a Zacks Rank of #2 (Buy), while Thomson Reuters has a Zacks Rank of #3 (Hold) right now. This means that SMGZY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst out ...

Investors might want to bet on Smiths Group PLC (SMGZY) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual inv ...

Smiths Group plc (OTCPK:SMGZY) Q2 2024 Earnings Conference Call March 26, 2024 4:30 AM ET Company Participants Paul Keel - CEO Clare Scherrer - CFO Conference Call Participants Lushanthan Mahendrarajah - JPMorgan Mark Jones - Stifel Christian Hinderaker - Goldman Sachs Jonathan Hurn - Barclays Andrew Douglas - Jefferies Operator Paul Keel Good morning, everyone, and thanks for joining us. As we typically do, I'll provide a short recap of our first half results and then turn it over to Clare to walk us throu ...

Smiths Group plc (OTCPK:SMGKF) Q4 2023 Earnings Conference Call September 26, 2023 3:30 AM ET Company Participants Paul Keel - Chief Executive Officer Clare Scherrer - Chief Financial Officer Conference Call Participants Christian Hinderaker - Goldman Sachs Lushanthan Mahendrarajah - JPMorgan George Featherstone - Bank of America Merrill Lynch Mark Jones - Stifel, Nicolaus & Company, Inc. Paul Keel Good morning, everyone, and thank you, for joining us today. I'll open with a short recap of fiscal 2023 befor ...

Call Start: 04:30 January 1, 0000 5:36 AM ET Smiths Group PLC (OTCPK:SMGKF) Q2 2023 Earnings Conference Call March 24, 2023, 04:30 ET Company Participants Paul Keel - CEO & Executive Director Clare Scherrer - CFO & Director Conference Call Participants Christian Hinderaker - Goldman Sachs Group Andrew Wilson - JPMorgan Chase & Co. Mark Jones - Stifel, Nicolaus & Company Andre Kukhnin - Crédit Suisse Bruno Gjani - BNP Paribas Exane Paul Keel Good morning, everyone, and thanks for joining us. With me in Londo ...

Smiths Group plc (OTCPK:SMGKF) Q4 2022 Earnings Conference Call September 23, 2022 3:30 AM ET Company Participants Paul Keel - CEO Clare Scherrer - CFO Conference Call Participants Andrew Wilson - JPMorgan Andre Kukhnin - Credit Suisse Mark Davies Jones - Stifel Andrew Douglas - Jefferies Jonathan Hurn - Barclays Paul Keel Good morning, everyone and thanks for joining us today. With me in London this morning is our CFO, Clare Scherrer. In terms of the running order, I'll offer a few thoughts to set the stag ...