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Highlights:

  • Smith+Nephew H1 trading profit rose 11.2%, with margin expanding to 17.7%
  • Smith+Nephew cash conversion improved to 93% in H1, supported by working capital gains
  • Smith+Nephew confirms GBP 500 million share buyback and maintains full-year 2025 guidance

Smith+Nephew plc (LSE:SN, NYSE:SNN), a global medical technology company, has released results for the six months ended 28 June 2025, reporting increases in trading profit, cash generation, and earnings per share. Underlying revenue grew 5.0% in the first half, with reported revenue rising 4.7%, reflecting a small foreign exchange headwind and the impact of two fewer trading days compared to the same period last year. Trading profit for the period increased 11.2%, with trading profit margin rising by 100 basis points to 17.7% from 16.7% in the prior year. Operating profit rose 30.6% year-on-year. The improvement was supported by volume growth and cost efficiencies from the company’s ongoing operational initiatives. Free cash flow reached GBP 244 million, significantly higher than the GBP 39 million reported in H1FY24. Trading cash flow totalled GBP 487 million, with cash conversion improving to 93%, up from 60% in the previous year. The company attributed the increase to favourable working capital movements and a reduction in restructuring charges, which fell to GBP 8 million from GBP 62 million.

In the second quarter, underlying revenue growth accelerated to 6.7%, with reported growth of 7.8%, supported by a small foreign exchange benefit. All three business units Orthopaedics, Sports Medicine & ENT, and Advanced Wound Management recorded sequential improvements compared to Q1. Orthopaedics delivered 5.0% underlying revenue growth, while Sports Medicine & ENT grew 5.7% (10.2% excluding China). Advanced Wound Management posted 10.2% growth, including recovery in Advanced Wound Bioactives. Earnings per share increased to 33.5 per cent, up from 24.5 per cent in H1FY24. Adjusted EPS (EPSA) rose 14.1% to 42.9¢. The board declared an interim dividend of 15.0 per cent, up 4.2% from 14.4 per cent  a year earlier.

In addition to the interim dividend, Smith+Nephew announced a share buyback programme of up to GBP 500 million to be executed in the second half of 2025. This return of capital comes alongside retained leverage levels and continued investment in growth initiatives. Full-year 2025 guidance remains unchanged, with the company expecting around 5.0% underlying revenue growth and a trading profit margin between 19.0% and 20.0%. The outlook incorporates an expected net impact from tariffs in the range of GBP 15 million to GBP 20 million, consistent with prior disclosures.

SN is trading 12.26% higher at GBX 1,295.50 per share as of 5 August 2025.