Smiths Group shares rose sharply after the industrial-engineering company reported above-forecast earnings and projected stronger growth ahead, despite ongoing disruption from war in the Middle East.

Organic revenues in the year to 31 July rose 1.2% to £1.94bn, while operating profits increased 1.9% to £399m, beating consensus for £388m. The 175-year-old engineer described its performance as "resilient" against significant end-market disruption in global energy and US residential construction.

Following a major overhaul that left it with two core businesses — John Crane and Flex-Tek — the company forecast organic revenue growth of 4% for the current year, backed by a robust order book. John Crane, its seals and components arm, is expected to see growth weighted to the second half, while Flex-Tek’s growth is projected for the first half amid a subdued US construction market.

Chief executive Roland Carter said 2026 marked a year of significant strategic change, transforming the portfolio and unlocking over £3bn of value. As of 0830 BST, shares in Smiths were trading 6% higher at 2,753p.