Smith & Nephew PLC 6-K, filed Aug 4, 2026

Smith & Nephew PLC (SNN)

6-K 2026-08-04 For: 2026-08-04

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Added on August 04, 2026

About this 6-K

Smith & Nephew PLC filed this 6-K on August 4, 2026.

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	27 June	28 June	Reported	Underlying
	2026	2025	growth	growth
	$m	$m	%	%
Second Quarter Results
Revenue	1,597	1,553	2.8	1.6

Half Year Results
Revenue	3,097	2,961	4.6	2.3
Operating profit	448	429	4.3
Operating profit margin (%)	14.5	14.5
EPS (cents)	35.6	33.5	6.2
Cash generated from operations	605	568	6.9

Trading profit	566	523	8.1
Trading profit margin (%)	18.3	17.7
EPSA (cents)	47.7	42.9	11.0
Free cash flow	231	244	(5.2)


	27 June	28 June	Reported	Underlying	Acquisitions	Currency
Consolidated revenue by	2026	2025	growth	growth	/disposals	impact
business unit by product	$m	$m	%	%	%	%
Sports Medicine & ENT	527	479	10.0	8.6	-	1.4
Sports Medicine Joint Repair	293	262	11.8	10.6	-	1.2
Arthroscopic Enabling Technologies	178	161	10.6	8.8	-	1.8
ENT (Ear, Nose and Throat)	56	56	(0.3)	(1.6)	-	1.3


	27 June	28 June	Reported	Underlying	Acquisitions	Currency
Consolidated revenue by	2026	2025	growth	growth	/disposals	impact
business unit by product	$m	$m	%	%	%	%
Advanced Wound Management	456	459	(0.7)	(2.1)	-	1.4
Advanced Wound Care	204	192	6.1	3.7	-	2.4
Advanced Wound Bioactives	144	165	(12.5)	(12.7)	-	0.2
Advanced Wound Devices	108	102	5.5	3.8	-	1.7


	27 June	28 June	Reported	Underlying	Acquisitions	Currency
Consolidated revenue by	2026	2025	growth	growth	/disposals	impact
business unit by product	$m	$m	%	%	%	%
Orthopaedics	614	615	(0.2)	(1.0)	-	0.8
Knee Implants	247	257	(3.8)	(4.3)	-	0.5
Hip Implants	165	162	1.4	0.5	-	0.9
Other Reconstruction	36	35	2.0	0.8	-	1.2
Trauma & Extremities	166	161	3.5	2.4	-	1.1


	27 June	28 June	Reported	Underlying	Acquisitions	Currency
Consolidated revenue by	2026	2025	growth	growth	/disposals	impact
geography	$m	$m	%	%	%	%
US	816	827	(1.2)	(1.3)	-	0.1
Other Established Markets(i)	489	470	4.0	1.7	-	2.3
Total Established Markets	1,305	1,297	0.6	(0.2)	-	0.8
Emerging Markets	292	256	13.7	10.6	-	3.1
Total	1,597	1,553	2.8	1.6	-	1.2


			Reported
	27 June 2026	28 June 2025	growth
	$m	$m	%
Revenue	3,097	2,961	4.6
Operating profit	448	429	4.3
Acquisition and disposal related items	21	9
Restructuring and rationalisation costs	23	8
Amortisation and impairment of acquisition intangibles	87	83
Legal and other	(13)	(6)
Trading profit(i)	566	523	8.1
	¢	¢
Earnings per share ('EPS')	35.6	33.5
Acquisition and disposal related items	3.6	1.8
Restructuring and rationalisation costs	2.1	0.6
Amortisation and impairment of acquisition intangibles	8.1	7.3
Legal and other	(1.7)	(0.3)
Adjusted Earnings per share ('EPSA')(i)	47.7	42.9	11.0


Emily Heaven, Smith+Nephew	+44 (0) 7811 919437
Craig Bijou, Smith+Nephew	+1 (475) 850-8282

Media contacts
Charles Reynolds, Smith+Nephew	+44 (0) 1923 477314
Susan Gilchrist / Ayesha Bharmal, Brunswick	+44 (0) 20 7404 5959


		27 June	31 December	28 June
		2026	2025	2025
	Notes	$m	$m	$m
ASSETS
Non-current assets
Property, plant and equipment		1,615	1,638	1,436
Goodwill		3,236	3,108	3,111
Intangible assets		1,109	882	962
Investments in associates		126	121	7
Investments		25	30	29
Other non-current assets		197	164	49
Retirement benefit assets		66	64	70
Deferred tax assets		252	347	401
		6,626	6,354	6,065
Current assets
Inventories		2,113	2,117	2,467
Trade and other receivables		1,487	1,413	1,435
Current tax receivable		33	16	49
Cash and cash equivalents	6	754	557	676
		4,387	4,103	4,627
TOTAL ASSETS		11,013	10,457	10,692

EQUITY AND LIABILITIES
Equity attributable to owners of the Company
Share capital		175	175	175
Share premium		615	615	615
Capital redemption reserve		20	20	20
Treasury shares		(733)	(515)	(48)
Other reserves	8	(327)	(329)	(347)
Retained earnings		5,430	5,323	5,121
Total equity		5,180	5,289	5,536

Non-current liabilities
Long-term borrowings and lease liabilities	6	3,212	3,177	3,297
Retirement benefit obligations		88	84	86
Other payables		370	190	96
Provisions		72	82	94
Deferred tax liabilities		40	40	42
		3,782	3,573	3,615

Current liabilities
Bank overdrafts, borrowings, loans and lease liabilities	6	573	150	157
Trade and other payables		1,249	1,177	1,097
Provisions		68	74	58
Current tax payable		161	194	229
		2,051	1,595	1,541
Total liabilities		5,833	5,168	5,156
TOTAL EQUITY AND LIABILITIES		11,013	10,457	10,692


			Capital
	Share	Share	redemption	Treasury	Other	Retained	Total
	capital	premium	reserve	shares	reservesC	earningsD	equity
	$m	$m	$m	$m	$m	$m	$m
At 1 January 2026	175	615	20	(515)	(329)	5,323	5,289
Attributable profit for the periodA	-	-	-	-	-	303	303
Other comprehensive incomeA	-	-	-	-	2	(1)	1
Total comprehensive income	-	-	-	-	2	302	304
Equity dividends declared and paid	-	-	-	-	-	(205)	(205)
Share-based payments recognised	-	-	-	-	-	34	34
Taxation on share-based payments	-	-	-	-	-	5	5
Purchase of own sharesC	-	-	-	(250)	-	-	(250)
Cost of shares transferred to beneficiaries	-	-	-	32	-	(29)	3
At 27 June 2026	175	615	20	(733)	(327)	5,430	5,180


	27 June	28 June
Revenue by product from continuing operations	2026	2025
	$m	$m
Sports Medicine Joint Repair	574	509
Arthroscopic Enabling Technologies	340	307
ENT (Ear, Nose and Throat)	103	107
Sports Medicine & ENT	1,017	923
Advanced Wound Care	398	366
Advanced Wound Bioactives	263	285
Advanced Wound Devices	206	194
Advanced Wound Management	867	845
Knee Implants	492	501
Hip Implants	326	313
Other Reconstruction	68	64
Trauma & Extremities	327	315
Orthopaedics	1,213	1,193
Total	3,097	2,961


	27 June 2026			28 June 2026
	Established MarketsE	Emerging Markets	Total	Established MarketsE	Emerging Markets	Total
	$m	$m	$m	$m	$m	$m
Orthopaedics, Sports Medicine & ENT	1,810	420	2,230	1,752	364	2,116
Advanced Wound Management	739	128	867	731	114	845
Total	2,549	548	3,097	2,483	478	2,961


		Integrity
		$m
Intangible assets - technology-related		321
Inventory		1
Cash		5
Other Assets		2
Other liabilities		(7)
Trade and other payables		(1)
Net deferred tax liability		(71)
Net assets		250
Goodwill		140
Consideration		390


	Carrying amount			Fair value
	27 June	31 December	28 June	27 June	31 December	28 June
	2026	2025	2025	2026	2025	2025	Fair value
	$m	$m	$m	$m	$m	$m	level
Financial assets measured at fair value
Forward foreign exchange contracts	54	33	2	54	33	2	Level 2
Investments	25	30	29	25	30	29	Level 1 & 3
Investments relating to deferred compensation arrangements	120	106	-	120	106	-	Level 1
Interest rate swaps	15	11	31	15	11	31	Level 2
Currency swaps	1	2	-	1	2	-	Level 2
	215	182	62	215	182	62
Financial assets not measured at fair value
Trade and other receivables	1,354	1,278	1,296
Cash and cash equivalents	754	557	676
	2,108	1,835	1,972
Total financial assets	2,323	2,017	2,034

Financial liabilities measured at fair value
Acquisition consideration - contingent	(286)	(107)	(89)	(286)	(107)	(89)	Level 3
Forward foreign exchange contracts	(8)	(15)	(36)	(8)	(15)	(36)	Level 2
Interest rate swaps	(3)	-	-	(3)	-	-	Level 2
Currency swaps	(1)	(2)	-	(1)	(2)	-	Level 2
	(298)	(124)	(125)	(298)	(124)	(125)
Financial liabilities not measured at fair value
Acquisition consideration - deferred	-	-	(9)
Bank overdrafts and loans	(19)	(8)	(17)
Corporate bond not in a hedge relationship	(1,395)	(1,394)	(1,493)
Corporate bond in a hedge relationship	(1,624)	(1,084)	(1,110)
Private placement debt not in a hedge relationship	(550)	(625)	(625)
Trade and other payables	(1,208)	(1,243)	(1,060)
	(4,796)	(4,354)	(4,314)
Total financial liabilities	(5,094)	(4,478)	(4,439)


	27 June 2026		31 December 2025		28 June 2025
	Book	Market	Book	Market	Book	Market
	value	value	value	value	value	value
	$ million	$ million	$ million	$ million	$ million	$ million
2030 USD corporate bond	897	802	897	810	996	875
2034 USD corporate bond	635	659	641	672	648	659
2027 USD corporate bond	349	351	349	354	348	354
2029 EUR corporate bond	571	594	591	617	611	623
2038 EUR corporate bond	567	580	-	-	-	-
Private placement debt	550	516	625	594	625	589


By order of the Board:

Deepak Nath	Chief Executive Officer	3 August 2026
John Rogers	Chief Financial Officer	3 August 2026


		27 June	28 June
		2026	2025
	Notes	$m	$m
Revenue	2	3,097	2,961
Cost of goods sold		(901)	(870)
Gross profit		2,196	2,091
Selling, general and administrative expenses		(1,598)	(1,519)
Research and development expenses		(150)	(143)
Operating profit	2	448	429
Interest income		10	15
Interest expense		(65)	(69)
Other finance costs		(18)	(12)
Share of results of associates		5	(1)
Profit before taxation		380	362
Taxation	3	(77)	(69)
Attributable profit for the periodA		303	293
Earnings per ordinary shareA
Basic		35.6	33.5
Diluted		35.2	33.3


	27 June	28 June
	2026	2025
	$m	$m
Cash flows from operating activities
Profit before taxation	380	362
Net interest expense	55	54
Depreciation, amortisation and impairment	300	273
Loss on disposal of property, plant and equipment and software	12	11
Share-based payments expense (equity-settled)	34	21
Share of results of associates	(5)	1
Pension costs less cash paid	2	2
Increase in inventories	(6)	-
Increase in trade and other receivables	(98)	(49)
Decrease in trade and other payables and provisions	(69)	(107)
Cash generated from operations	605	568
Interest received	8	14
Interest paid	(63)	(75)
Income taxes paid	(100)	(111)
Net cash inflow from operating activities	450	396

Cash flows from investing activities
Acquisitions, net of cash acquired	(221)	(8)
Capital expenditure	(190)	(139)
Proceeds from disposal of property, plant and equipment	-	12
Net cash used in investing activities	(411)	(135)

Cash flows from financing activities
Purchase of own shares	(116)	-
Proceeds from own shares	3	1
Payment of capital element of lease liabilities	(29)	(25)
Proceeds from borrowings due within one year	23	27
Settlement of borrowings due within one year	(87)	(13)
Proceeds from borrowings due after one year	578	-
Settlement of currency swaps	(10)	(5)
Equity dividends paid	(205)	(202)
Net cash inflow/(used) in financing activities	157	(217)

Net increase in cash and cash equivalents	196	44
Cash and cash equivalents at beginning of the period	553	617



	27 June	28 June
	2026	2025
Foreign currency translation reserve	$m	$m
At 1 January	(341)	(520)
Exchange (loss)/gain on translation of foreign operations	(45)	261
Exchange gain/(loss) arising on hedging instruments	25	(68)
	(361)	(327)

	27 June	28 June
	2026	2025
Cash flow hedge reserve	$m	$m
At 1 January	18	34
Gain/(loss) arising in the period	27	(47)
Gain recycled to income statement in the period	-	(5)
Taxation	-	9
	45	(9)


	27 June	31 December	28 June
	2026	2025	2025
Average rates
Sterling	1.35	1.32	1.30
Euro	1.17	1.13	1.09
Swiss Franc	1.27	1.20	1.16
Japanese Yen	0.0063	0.0067	0.0067
Period end rates
Sterling	1.32	1.35	1.37
Euro	1.14	1.17	1.17
Swiss Franc	1.24	1.26	1.26
Japanese Yen	0.0062	0.0064	0.0069


Performance measures
Non-IFRS measure	Purpose	Definition	Closest equivalent IFRS measure	Reconciled on
Underlying revenue growth	Underlying revenue growth is used to compare revenue in a given year to the previous year on a like-for-like basis. This measure is used by both management and the investor community.	Underlying revenue growth reconciles to reported revenue growth, the most directly comparable financial measure calculated in accordance with IFRS Accounting Standards, by making two adjustments, the 'constant currency exchange effect' and the 'acquisitions and disposals effect'. The 'constant currency exchange effect' is a measure of the increase/decrease in revenue resulting from currency movements on non-US Dollar sales and is measured as the difference between: 1) the increase/decrease in the current year revenue translated into US Dollars at the current year average exchange rate and the prior year revenue translated at the prior year rate; and 2) the increase/decrease being measured by translating current and prior year revenues into US Dollars using the same exchange rate. The 'acquisitions and disposals effect' is the measure of the impact on revenue from newly acquired material business combinations and recent material business disposals. This is calculated by comparing the current year, constant currency actual revenue (which includes acquisitions and excludes disposals from the relevant date of completion) with prior year, constant currency actual revenue, adjusted to include the results of acquisitions and exclude disposals for the commensurate period in the prior year. These sales are separately tracked in the Group's internal reporting systems and are readily identifiable.	Revenue growth	34
Average daily sales	Average daily sales is used to assess underlying revenue growth by removing the effect of different trading days between periods. This is a key metric used by management to assess the performance of the Group.	Average daily sales is calculated by dividing revenue at a constant exchange rate by the number of trading days in a given period. Trading days refer to the days on which the Group generates its revenue.	Revenue	n/a


Performance measures (continued)
Trading profit	Trading profit is used in conjunction with operating profit to assess the performance and profitability of the Group. It is a key internal and external metric used by the investor community to assess our performance. It is our segment performance measure in accordance with IFRS 8 Operating Segments.	Trading profit is operating profit excluding the impact of acquisition and disposal related items arising in connection with business combinations, including amortisation of acquisition intangible assets, impairments and integration costs; restructuring events; and gains and losses resulting from legal disputes and uninsured losses. In addition to these items, gains and losses that materially impact the Group's profitability on a short-term or one-off basis are excluded.	Operating profit	34
Trading profit margin	This measure is used to assess the performance and profitability of the Group. It is a key external metric used by the investor community to assess our performance.	Trading profit margin is trading profit divided by revenue.	Operating profit margin	34
Trading profit before tax	Trading profit before tax is used in conjunction with profit before tax to assess performance and profitability of the Group. This measure is intended to enable the users to assess the performance of the Group by excluding items that impact the short-term profitability of the Group.	Trading profit before tax is profit before tax excluding impact of acquisition and disposal related items arising in connection with business combinations, including amortisation of acquisition intangible assets, impairments and integration costs; restructuring events; and gains and losses resulting from legal disputes and uninsured losses. In addition to these items, gains and losses that materially impact the Group's profitability on a short-term or one-off basis are excluded.	Profit before tax	34
Trading taxation	Trading taxation is used in conjunction with taxation to assess taxation that corresponds to trading profit before tax. This metric is used by both management and the investor community.	Trading taxation is taxation excluding the impact of acquisition and disposal related items arising in connection with business combinations, including amortisation of acquisition intangible assets, impairments and integration costs; restructuring events; and gains and losses resulting from legal disputes and uninsured losses. In addition to these items, gains and losses that materially impact the Group's profitability on a short-term or one-off basis are excluded.	Taxation	34
Trading attributable profit	This metric is used in the calculation of adjusted basic earnings per share.	Trading attributable profit is attributable profit excluding the impact of acquisition and disposal related items arising in connection with business combinations, including amortisation of acquisition intangible assets, impairments and integration costs; restructuring events; and gains and losses resulting from legal disputes and uninsured losses. In addition to these items, gains and losses that materially impact the Group's profitability on a short-term or one-off basis are excluded.	Attributable profit	34
Adjusted earnings per share ('EPSA')	EPSA is a trend measure. The Group presents this measure to assist investors in their understanding of trends.	Adjusted earnings per share is trading attributable profit divided by the weighted average number of shares outstanding. This is the same denominator used when calculating basic earnings per share.	Basic earnings per share	34


Performance measures (continued)
Trading cash flow	Trading cash flow is used in conjunction with cash generated from operations to assess the conversion of trading profit into cash. It is key external metric used by the investor community and is a key performance measure for management.	Trading cash flow is cash generated from operations excluding the impact of acquisition and disposal related items arising in connection with business combinations, including integration costs; restructuring events; and gains and losses resulting from legal disputes and uninsured losses. In addition to these items, gains and losses that materially impact the Group's cash flows on a short-term or one-off basis are excluded. Trading cash flow includes payment of capital element of lease liabilities, proceeds from disposal of property, plant and equipment and capital expenditure as presented in the Group cash flow statement.	Cash generated from operations	34
Trading cash conversion	This measure is used to assess the conversion of trading profit into cash. It is a key external metric used by the investor community and is a key performance measure for management.	Trading cash conversion is trading cash flow divided by trading profit.	Cash generated from operations	34


Other measures
Non-IFRS measure	Purpose	Definition	Closest equivalent IFRS measure	Reconciled on
Free cash flow	Free cash flow is a measure of the cash generated for the Group to use after capital expenditure according to its Capital Allocation Framework. This metric is used by both management and investor community.	Free cash flow is net cash inflow from operating activities less capital expenditure, proceeds from disposal of property, plant and equipment and payment of lease liabilities.	Net cash inflow from operating activities	35
Adjusted EBITDA	Adjusted EBITDA is used in the calculation of adjusted leverage ratio.	Adjusted EBITDA is attributable profit excluding taxation, share of results of associates, other finance costs, interest expense, interest income, acquisition and disposal related items, restructuring and rationalisation costs, amortisation and impairment of acquisition intangibles, legal and other costs, depreciation and impairment of property, plant and equipment and amortisation and impairment of other intangible assets.	Attributable profit	36
Adjusted leverage ratio	Adjusted leverage ratio is used in the calculation relating to debt covenants.	We calculate adjusted leverage ratio by dividing net debt by adjusted EBITDA. Net debt is defined as total borrowings less cash and cash equivalents in the statement of financial position. Total borrowings include bank overdrafts, borrowings, loans and lease liabilities and long-term borrowings and lease liabilities.	Leverage ratio(using IFRS measures)	36
Adjusted return on invested capital ('Adjusted ROIC')	Adjusted ROIC is a metric used by investor community and is a measure of the return generated on capital invested by the Group. It provides a metric for long-term value creation and encourages compounding reinvestment within the business and discipline around acquisitions with low returns and long payback. Adjusted ROIC is a key performance measure under the Performance Share Program.	Adjusted ROIC is defined as operating profit (before amortisation and impairment of acquisition intangibles) less adjusted taxes/((opening net operating assets + closing net operating assets)/2).	Return on invested capital ('ROIC') (using IFRS measures)	n/a


					Reconciling Items
	27 June	28 June	Reported	Underlying	Acquisitions	Currency
	2026	2025	growth	growth	& disposals	impact
	$m	$m	%	%	%	%
Segment revenue
Sports Medicine & ENT	1,017	923	10.2	7.7	-	2.5
Advanced Wound Management	867	845	2.6	(0.1)	-	2.7
Orthopaedics	1,213	1,193	1.7	(0.1)	-	1.8
Revenue	3,097	2,961	4.6	2.3	-	2.3


					Cash
		Profit			generated
	Operating	before		Attributable	from	Earnings
	profit1	tax2	Taxation3	profit4	operations5	per share6
	$m	$m	$m	$m	$m	¢
Half year 2026 Reported	448	380	(77)	303	605	35.6
Acquisition and disposal related items	21	35	(6)	29	20	3.6
Restructuring and rationalisation costs	23	24	(6)	18	24	2.1
Amortisation and impairment of acquisition intangibles	87	87	(19)	68	7	8.1
Legal and other7	(13)	(19)	5	(14)	-	(1.7)
Lease liability payments	-	-	-	-	(29)	-
Capital expenditure	-	-	-	-	(190)	-
Proceeds from disposal of property, plant and equipment	-	-	-	-	-	-
Half year 2026 Non-IFRS	566	507	(103)	404	437	47.7


		Smith & Nephew plc
		(Registrant)


Date: 04 August, 2026	By:	/s/ Helen Barraclough
		Helen Barraclough
		Company Secretary