Our markets
We operate in four attractive markets – flow control, construction, thermal solutions and aerospace where we have leading positions and differentiated proprietary technology. Our markets are supported by powerful global megatrends including energy demand and security, housing availability and affordability, industrial electrification and aviation growth, all supported by an ongoing focus by our customers on industrial productivity and sustainability. While geopolitical uncertainty and volatility is the new normality, our business model has proven resilient to challenging conditions and able to take advantage of emerging opportunities.
Market drivers
- Flow control: Market drivers include energy security, process resilience, energy transition and environmental concerns
- Construction: Market drivers include US housing demand, growth in commercial and performance efficiency
- Thermal solutions: Market drivers include industrial process electrification, process efficiency and cost and datacentre growth
- Aerospace: Market drivers include growing demand for air travel, commercial aircraft backlog and growth in space and defence platforms
Our growth strategy – the growth algorithm
Our growth strategy builds on our leading market positions. It is centred on four priorities – accelerate our growth initiatives, innovate with impact, execute relentlessly and compound value through M&A.
Accelerate
Accelerate organic growth through maximising the core and targeted investment into new opportunities
Innovate
Innovate to meet customer needs, drive customer intimacy and deliver growth
Execute
Execute relentlessly, applying Smiths Excellence and investing in people, processes and systems
Compound
Invest free cashflow into value-accretive acquisitions that will compound growth and value
We are accelerating the pace of delivery of our strategic growth initiatives and increasing investment behind the highest return opportunities. By strengthening our product offering, strategic pricing, expanding into higher-growth adjacencies and investing in commercial excellence, we expect to drive above market growth.
Innovation is a key source of differentiation, and we continue to invest to increase the quantum and pace to deliver growth and competitive advantage. Our approach combines sustained investment in product development with disciplined commercialisation, ensuring that new product concepts are translated into tangible growth.
Operational excellence is the basis of growth and value creation. We execute through focused business units supported by a lean corporate centre driving and incentivising performance, and promoting a culture of performance, excellence, safety and ethics.
M&A augments and compounds organic growth. Our acquisition returns have exceeded cost of capital and are delivering significant value under Smiths ownership. We have clear criteria for the strategic and financial characteristics of targets and a pipeline of opportunities across multiple vectors.
