Smith & Nephew plc

Worth knowing

• Profit looks boosted by one-off gains. Reported profit is 1.9× operating cash profit (EBITDA), lifted by income outside the core business.Reported profit is 1.9× operating cash profit, lifted by income outside the core business.

  Smith & Nephew's reported profit is 1.9× its operating cash profit (EBITDA), which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.Smith & Nephew's reported profit is 1.9× its operating cash profit, which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.

• Operating margin at a 6-year high. 13% in 2025, the best of the last 6 years.

  Smith & Nephew kept 13% of revenue as operating profit in 2025, its highest in the 6 years of filings we have.

• Profits growing faster than sales. Since 2022: revenue +18%, operating profit +76%.

  Since 2022, Smith & Nephew's revenue grew 18% while operating profit grew 76%: each extra dollar of sales is adding more profit.

• Financials may be out of date. Latest financial period ended 10 months ago.

  The latest financial period we have ended 10 months ago, so the scores may not reflect recent results.