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Smith & Nephew (SN) investor relations material
Smith & Nephew H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Achieved 6.7% underlying revenue growth in Q2 2025, with sequential acceleration across all business units and regions, and strong momentum in Joint Repair outside China.
H1 trading margin reached 17.7%, a 100 bps expansion year-over-year, with further uplift expected in H2.
Free cash flow increased to $244M in H1, supporting a $500M share buyback for H2 2025.
Transformation initiatives and innovation pipeline drove improved profitability, productivity, and sustainable operational changes.
Financial highlights
Q2 revenue was $1,553M, up 6.7% underlying and 7.8% reported, with a 110 bps FX tailwind.
H1 2025 revenue reached $2,961M, up 5.0% underlying and 4.7% reported year-over-year.
Trading profit was $523M, up 11.2% year-over-year; trading margin expanded to 17.7%.
EPS grew 36.6% to 33.5¢; adjusted EPSA up 14.1% to 42.9¢; interim dividend up 4.2% to 15.0¢.
Free cash flow surged to $244M in H1 2025 from $39M in H1 2024; trading cash conversion improved to 93%.
Outlook and guidance
Full-year 2025 guidance unchanged: underlying revenue growth around 5%, trading margin expected between 19.0% and 20.0%.
Margin expansion expected to pick up in H2 as cost savings and reduced China headwinds materialize.
Free cash flow for the year expected to exceed £600M.
Tariffs expected to be a net headwind of $15–20M in 2025, mainly impacting H2.
No change to revenue or margin guidance despite Q2 strength, due to macro uncertainty and tough Q4 comparators.
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