Smiths has released a strong Q1 trading update, ahead of its AGM later today. The key highlights include strong organic growth, upgrading FY25 growth and margin guidance, buyback increased. Current trading Q1 Group revenues grew organically by 15.8% (+13.1% when adjusted for extra trading days and vs a Q1’24 comparator of +3.5%) driven by strong growth in Detection, John Crane and Flex-Tek aerospace, and Interconnect semi-test activity. Its Acceleration Plan to improve operating efficiencies across the Group is progressing well. Buyback The Group is resuming its share buyback by initiating the second tranche of its previously announced programme. Given its strong balance sheet and expected good cashflow, the Board is increasing the total amount of the programme from £100m to £150m. The first tranche of £50m was completed in Sept, and the second tranche, now totaling £100m, is expected to complete by the end of its FY25. Outlook Given the strong start to the year and a record order book and expected mix, management now expects FY25 organic revenue growth of 5-7% (from the 4-6% original guidance) and a 40-60bps operating margin expansion in FY25 (FY24 was 16.8%). Note: INVe FY25E organic growth is 5.3% (consensus 5.5%) and margin 17.4% (consensus 17.3%). Therefore, there appears to be potential upwards pressure on consensus forecasts, even if the margin comes back a little. H1’25 results are scheduled for 25 March 2025.