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Smith & Nephew plc reported FY 2025 revenue of $6.16B, up 6.1% YoY from $5.81B, driven by 5.3% underlying growth across all three segments: Orthopaedics at $2.44B (+5.7%), Sports Medicine & ENT at $1.93B (+6.0%), and Advanced Wound Management at $1.79B (+6.7%). Gross profit rose to $4.19B (68.0% margin, down from 69.6% YoY due to $159M inventory rationalization charge), operating profit increased 20.7% to $794M (12.9% margin, +160bps), and attributable profit grew to $625M. EPS basic was $1.00, up from $0.47 YoY. Free cash flow surged 52.5% to $840M, supported by $1.55B cash from operations and disciplined working capital. Balance sheet shows total assets $10.46B, equity $5.29B, net debt $2.76B (leverage 1.7x adjusted). Trading profit reached $1.21B (19.7% margin, +160bps), reflecting 12-Point Plan benefits. Forward-looking, RISE strategy targets 6-7% organic revenue CAGR to 2028, >$1B FCF, 12-13% adjusted ROIC, emphasizing innovation, scaling, and efficiency amid tariff, reimbursement risks.
Smith & Nephew plc delivered strong FY 2025 results with revenue of $6.16B, up 6.1% YoY from $5.81B, reflecting 5.3% underlying growth. All segments contributed: Orthopaedics $2.44B (+5.7%), Sports Medicine & ENT $1.93B (+6.0%), Advanced Wound Management $1.79B (+6.7%). Gross profit reached $4.19B (68.0% margin, down from 69.6% due to $159M inventory charge). Operating profit rose 20.7% to $794M (12.9% margin, +160bps YoY), driven by trading profit of $1.21B (19.7% margin). Attributable profit surged to $625M, EPS basic $1.00 (vs $0.47). Free cash flow hit $840M (+52.5% YoY), aided by $1.55B operations cash. Balance sheet solid: assets $10.46B, equity $5.29B, net debt $2.76B (1.7x adjusted leverage).
Revenue grew 6.1% YoY to $6.16B, with US at $3.31B (+5.9%), Other Established Markets $1.86B (+8.6%), Emerging Markets $1.00B (+2.4%). Orthopaedics led at $2.44B (+5.7% YoY), driven by Trauma & Extremities (+6.7%) and Other Reconstruction (+35.4%). Sports Medicine & ENT $1.93B (+6.0%), with Joint Repair +8.6%. Advanced Wound $1.79B (+6.7%), Bioactives +6.9%, Devices +11.1%. Growth offset China VBP headwinds; >60% from products launched in last 5 years.
Gross margin 68.0% (down 160bps YoY) impacted by $159M inventory rationalization and inflation. Operating margin expanded 160bps to 12.9%, trading margin +160bps to 19.7% via leverage, productivity ($325-375M savings target on track). SG&A $3.10B, R&D $296M (+2.4%). Net interest $112M, tax $154M (19.8% effective). Attributable profit $625M (+51.5% YoY).
Operations cash $1.55B (+24.4% YoY), FCF $840M (+52.5%). Investing -$406M (capex $433M), financing -$955M ($502M buyback, $330M dividends). Cash $557M, net debt $2.76B (1.7x adj. leverage). Assets $10.46B (inventory $2.12B post-rationalization), equity $5.29B. Non-current assets $6.35B, current $4.10B.
RISE strategy targets 6-7% organic revenue CAGR, 9-10% trading profit CAGR, >$1B FCF, 12-13% adj. ROIC by 2028. 2026 guidance: ~6% underlying revenue growth (~7.8% reported), ~8% trading profit growth ($1.3B). Headwinds: inventory revaluation, tariffs, skin substitutes reimbursement, China ENT VBP. Risks: supply chain, regulation, competition.
EPS
$1
Revenue
$6.16B
Net Income
$625.0M
Gross Margin
68.0%
Gross Profit
$4.19B
free cash flow
$840.0M
Operating Income
$794.0M
operating margin
12.9%