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UK's Smiths Group sees slower revenue growth on Middle East war impact

Published by Global Banking & Finance Review

Posted on May 21, 2026

1 min read

· Last updated: May 21, 2026

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UK's Smiths Group expects slower revenue growth on Middle East war impact

Smiths Group Revises Revenue Forecast Amid Middle East Conflict

Impact of Middle East War on Smiths Group

May 21 (Reuters) - British engineering firm Smiths Group on Thursday forecast annual revenue to grow at a slower pace that previously anticipated, after it took a £10 million ($13.43 million) hit from the war in the Middle East in the third quarter.

Effect on John Crane Unit

The conflict-related impact hit Smiths' John Crane unit, which supplies components for rotating equipment, resulting in a flat organic revenue for the group for the three months ended May 2.

Revised Revenue Growth Expectations

It now expects annual organic revenue growth of around 2%, down from an earlier forecast of 3% to 4%, assuming continued disruption to its Middle East operations, which account for 7% of total sales.

Currency Exchange Rate

($1 = 0.7445 pounds)

(Reporting by Prerna Bedi in Bengaluru; Editing by Sonia Cheema)

Key Takeaways

  • Smiths Group took a £10 million (about $13.4 million) charge in Q3 due to the Middle East war, leading to a downward revision in their annual revenue growth forecast (investing.com).
  • Smiths had previously pushed 2026 organic revenue growth at 3%–4%, not accounting for war-related impacts, highlighting emerging headwinds (marketscreener.com).
  • The broader conflict has already inflicted an estimated $25 billion in corporate costs globally, with soaring energy prices and disrupted supply chains denting profit margins across sectors (investing.com)

References

Frequently Asked Questions

How much was the charge Smiths Group took from the Middle East conflict?
Smiths Group took a charge of 10 million pounds ($13.43 million) in the third quarter.
Which sector is affected by the Middle East conflict according to the article?
The British engineering sector, specifically Smiths Group, is affected by the Middle East conflict.
What is the currency exchange rate mentioned in the article?
The article mentions an exchange rate of $1 = 0.7445 pounds.

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