Smith & Nephew (LSE:SN.) announced an 11.2% increase in trading profit for the first half of 2025 on Tuesday, driven by effective cost-cutting measures and a rebound in its U.S. business, which helped counterbalance softer demand from China.
The medical devices company posted a trading profit of $523 million for the six months ending June 28, surpassing analysts’ forecast of $496 million. The trading profit margin rose to 17.7%, up from 16.7% in the same period last year.
Revenue climbed to $2.96 billion compared to $2.82 billion a year earlier. Operating profit grew 30.6% year-over-year, reaching $429 million, while earnings per share increased to 33.5 cents.
Smith & Nephew also revealed plans for a new $500 million share repurchase program scheduled for the second half of 2025.
“This additional return of value will be undertaken in the second half of 2025 and reflects strong cash generation and balance sheet resulting from the 12-Point Plan transformation,” the company said in a statement.
Underlying revenue growth accelerated to 6.7% in Q2, with reported growth of 7.8% boosted by a 110 basis point positive impact from currency fluctuations.
Smith & Nephew confirmed its full-year guidance for 2025 remains unchanged.
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