Summary of Smith & Nephew Capital Markets Day Company Overview - **Company**: Smith & Nephew (NYSE: SNN) - **Event**: 2025 Capital Markets Day held on December 11, 2025 - **Industry**: Medical Technology Key Messages and Strategies - **12-Point Plan**: Actions taken under this plan have strengthened the business significantly over the past three years, setting a foundation for future growth [2][3] - **New Strategy - RISE**: Aims to accelerate growth and improve returns, targeting 6%-7% organic growth and 9%-10% trading profit over the next three years [3][11] - **Financial Goals**: Expected to generate $1 billion in free cash flow by 2028 and achieve a 12%-13% Return on Invested Capital (ROIC) [3] Market Position and Growth Opportunities - **Total Addressable Market**: $50 billion, growing at approximately 6% [5] - **Sports Medicine Market**: $7 billion, with Smith & Nephew as the second-largest player [5] - **Wound Care Market**: $13 billion, also with a significant position in biologics and single-use negative pressure wound therapy [5][6] - **Orthopedics Market**: Smaller position but with differentiated technology for future growth [6] Product Innovations and Launches - **New Product Launches**: Over 75 new products introduced in the last five years, with more expected in the next 18 months [11][12] - **ALLEVYN Dressing**: Launched to prevent pressure injuries, showing a 94% effectiveness rate [16] - **PICO Device**: A single-use negative pressure wound therapy device that reduces surgical site complications by up to 63% [22][41] Operational Improvements - **Manufacturing Efficiency**: Closed five facilities to better match demand and improved operational efficiency at the Memphis site [8][10] - **Inventory Management**: Positive steps taken to align supply and demand, with further margin improvements anticipated [10] Leadership and Team Strength - **Executive Team**: Composed of industry leaders with extensive experience, positioned to drive the company's strategy forward [6][8] Financial Projections and Market Share Goals - **Patient Reach**: Targeting to increase the number of patients treated from 15 million to 20 million by 2028 [11] - **Market Leadership**: Aiming to transition from category leader to market leader in sports and wound care [13] Challenges and Areas for Improvement - **Product Gaps**: Some areas did not meet growth ambitions due to shifting market trends [9] - **Inventory Alignment**: Currently about a year behind in inventory reduction goals [10] Conclusion - Smith & Nephew is positioned for significant growth through its RISE strategy, innovative product offerings, and operational improvements, with a strong focus on enhancing patient outcomes and expanding market share in the medical technology sector [3][11][12]

Company Overview - Cummins Inc. is based in Columbus, Indiana, and specializes in designing, manufacturing, distributing, and servicing diesel and natural gas engines, electric and hybrid powertrains, and related components globally [1] - The company has a market capitalization of $69.2 billion, positioning it as a large-cap stock within the specialty industrial machinery industry [2] Market Position and Performance - CMI is recognized for its quality and reliability, supported by a service network of over 19,000 dealers across 190 countries, enhancing its reputation among original equipment manufacturers (OEMs) [2] - CMI shares reached a 52-week high of $508.37 recently, with a stock price increase of 29.5% over the past three months, significantly outperforming the Industrial Select Sector SPDR Fund (XLI), which gained only 2.9% in the same period [3] Long-term Stock Trends - Over a six-month period, CMI shares rose by 56.5%, and over the past 52 weeks, they increased by 35.2%, again outperforming XLI's six-month gains of 7.3% and 8.6% over the last year [4] - The stock has consistently traded above its 50-day moving average since mid-May and above its 200-day moving average since early July, indicating a bullish trend [4] Recent Financial Results - In Q3, CMI reported earnings per share (EPS) of $3.86, which is a 34.1% decrease year over year, while revenue reached $8.3 billion, exceeding Wall Street's forecast of $8.1 billion [6] - The company's strong performance is attributed to high demand for Power Systems and Distribution, particularly in data centers and generators, along with effective cost management strategies [5]

Core Insights - Cummins Inc. is a global leader in power technology, offering a wide range of power solutions including diesel, natural-gas, hybrid, and electric powertrains, with a market capitalization of approximately $62.9 billion [1] Stock Performance - CMI stock has increased by 26% over the past 52 weeks, significantly outperforming the S&P 500 Index's 13.7% gain [2] - Year-to-date, CMI has risen by 30.8%, compared to the S&P 500's 13.4% increase [2] - The stock has also surpassed the Industrial Select Sector SPDR Fund (XLI), which has grown by 8.2% over the past year and 14.2% year-to-date [3] Business Drivers - The rise in Cummins' shares is attributed to strong demand in its Power Systems business, particularly for data center and mission-critical generators [4] - The company's long-term "Destination Zero" initiative, focusing on green hydrogen and hybrid powertrain investments through its Accelera business, is generating investor interest due to its alignment with the energy transition [4] Financial Outlook - Analysts project a 5% year-over-year growth in CMI's EPS for the fiscal year ending December 2025, reaching $22.44 on a diluted basis [5] - The consensus among 20 analysts is a "Moderate Buy," with ratings including eight "Strong Buy," 11 "Holds," and one "Strong Sell" [5] - Bernstein's Chad Dillard has raised the price target for Cummins to $475 from $385, maintaining a "Market Perform" rating, highlighting strength in the power generation business [6] - The mean price target of $491.94 indicates a 7.9% premium to current price levels, while the highest price target of $600 suggests an upside potential of 31.6% [6]