Smith & Nephew (SN) CMD 2025 summary

Strategic Vision and Financial Guidance

• RISE strategy targets 6-7% organic revenue CAGR and 9-10% trading profit CAGR through 2028, aiming for over $1 billion in free cash flow and 12-13% ROIC, well above cost of capital.

• Ortho 360 operational model and productivity initiatives are expected to unlock 300-400 basis points of margin expansion in Ortho by 2028, with a goal of 20% Ortho margin by 2030.

• The company is not reliant on any single business unit, product, or geography for growth, ensuring a balanced and resilient plan.

• Strong cash generation provides flexibility for strategic M&A to reinforce success and create further value.

• Portfolio rationalisation will simplify offerings, reduce inventory by $500 million, and lower capital requirements, with a $200 million non-cash provision in 2025.

Innovation and New Business Developments

• Over 75 new product launches in the past five years, with more than 18 months of upcoming launches, including the landmark knee and TESSA, a spatial surgery arthroscopic platform.

• PICO, a single-use negative pressure wound therapy device, has achieved double-digit growth for a decade, is supported by robust clinical evidence and NICE guidance, and proven to reduce surgical site infections by 63%.

• REGENETEN bioinductive implant, CartiHeal Agili-C, and TESSA are expected to deliver around $400 million in revenue by 2028, with strong clinical data and expanding indications.

• Landmark knee system integrates advanced kinematics, robotic enablement, and lean tray configurations, aiming to improve outcomes and efficiency, especially in ASCs.

• CORI robotic platform now supports knees, shoulders, and soon hips, with a small footprint and cost-effective model tailored for ASC growth, and is the only FDA-approved robotic system for revision TKR.

Market Positioning and ASC Strategy

• The company holds leading positions in sports medicine and wound care, and is expanding in orthopedics with differentiated technology.

• ASCs represent a major growth area, with 35% of CORI installations in ASCs and a focus on lean workflows, tray efficiency, and integrated data solutions.

• Strategic partnerships and a dedicated ASC sales team enable turnkey solutions and data-driven performance optimization for ASC customers.

• The shift from hospitals to ASCs is accelerating, with the company well-positioned to capture this trend through product design and commercial model.

• Streamlined instrument trays reduce OR space and reprocessing needs by up to 70%.