Smith & Nephew (SN) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 underlying revenue grew 3.1% year-over-year to $1,407 million, ahead of guidance, with consistent performance across all business units and strong innovation-driven growth from platforms like CORI, EVOS, REGENETEN, and negative pressure wound therapy.

• Growth was achieved despite a 240 basis point impact in China, a 150 basis point FX headwind, and one fewer trading day, while operational and commercial improvements from the 12-point plan continued.

• Innovation and new product launches in foam dressings, cementless knees, and clinical evidence for OXINIUM and REGENETEN supported growth.

Financial highlights

• Q1 revenue was $1,407 million, with 3.1% underlying and 1.6% reported growth after a 150 basis point FX headwind.

• US revenue grew 3.6% to $759 million; Other Established Markets up 5% to $427 million; Emerging Markets down 1.7% due to China, but up 14.7% excluding China.

• Orthopaedics grew 3.2% (5.1% excluding China); trauma and extremities up 6.3%; sports medicine and ENT up 2.4% (7.8% ex-China); advanced wound management up 3.8%.

• Robotics and capital sales drove a 46.6% increase in other recon; advanced wound devices grew 15.7%, led by PICO and RENASYS.

Outlook and guidance

• Full-year 2025 guidance unchanged: underlying revenue growth expected around 5% and trading margin of 19.0–20.0%, with margin expansion expected to be stronger in H2.

• Growth expected to accelerate from Q2 as China and trading day headwinds subside and cost savings materialize.

• Tariff impacts of $15–$20 million expected to be absorbed within current margin guidance.