Smith & Nephew's chief executive Deepak Nath expressed confidence that the medical device maker can navigate geopolitical headwinds, including shifting US tariffs and a slowdown in China. The London-listed company reported a $17 million tariff-related impairment last year, with projections rising to as high as $60 million in 2026.

Despite these challenges, Smith & Nephew posted $6.16 billion in revenues for 2025, marking a 6.1 percent increase from the previous year. Operating profit climbed to $794 million from $657 million in 2024. The company has been actively reducing its exposure to China, with revenues from the country falling from 7 percent to 2 percent over three years as part of a strategic overhaul.

Nath emphasized the company's agility in handling uncertainty, noting that its orthopaedics division showed particular strength with a 7.9 percent revenue increase in the final quarter of last year. The company maintains an active dialogue with activist investor Cevian Capital, which holds a 9 percent stake and has suggested spinning off the orthopaedics business. Nath defended the integrated portfolio approach, citing improvements in supply chain logistics and the division's contribution to free cash flow and margins.