Smiths Group (LSE:SMIN) PLC has raised guidance for organic revenue growth again after reporting a continued strong performance in its third quarter.
The multinational, diversified engineering business said organic revenue rose 13.4% in the nine months to April 30, 2023, in line with the 13.5% reported in the first half of the financial year.
“As a result of the Group's continued strong performance, we are raising FY2023 guidance to around 10% organic revenue growth with moderate margin improvement,” the company said in a statement.
In January, the firm increased its estimate for organic revenue for the financial year to 7%.
Paul Keel, Smiths group chief executive, commented: “Q3 was another strong quarter for Smiths, building on the record performance we achieved in the first half.
“We've now delivered eight consecutive quarters of growth, enabled by our strategy of accelerating growth, improving execution, and investing in our people.”
The third quarter performance was driven by both good volume and price growth, with strong demand in most end markets.
The John Crane unit continued to see significant demand across all segments, with strong conversion of orderbook to revenue in the quarter while Smiths Detection delivered a particularly strong quarter reflecting the timing of some large original equipment deliveries.
In Flex-Tek, strong growth in the aerospace segment more than offset the expected slowing in the US construction business but Smiths Interconnect declined in the period reflecting softness in some end markets.