ii view monthly round-up: February 2025

FTSE 100 companies made progress in February, with the blue-chip index gaining 1.57%. The FTSE 250 index, more exposed to the UK economy, fell almost 3%.  

Defence equipment maker BAE Systems (LSE:BA.) detailed soaring annual profits, predicting a further gain in adjusted profit for the 2025 year ahead. 

Order intake for 2024 reduced to £33.7 billion from £37.7 billion in 2023, although a record order book of £77.8 billion, up 11% year-over-year, supports an expected gain in 2025 profits of up to 10%. BAE shares gained 15% in February.

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Medical equipment maker Smith & Nephew (LSE:SN.) outlined annual sales and profit that beat City forecasts, driven by an ongoing transformation plan and improved demand for knee and hip replacements in the US.

Adjusted revenue rose 5.3% in 2024 to $5.8 billion (£4.6 billion), aiding an 8.2% rise in trading profit to $1.05 billion (£829 million. Management predicted an increase in adjusted profit margin in 2025 to 20% from 18.1% last year. Smith shares rose 12% in February having slumped in October following a reduced 2024 sales outlook.  

Healthcare goods maker Haleon (LSE:HLN) reported growth in adjusted sales and profits, with the maker of Sensodyne toothpaste and Centrum vitamins detailing a new £500 million share buyback programme.

Full-year sales stripped of acquisitions and disposals rose 5% year-over-year, pushing adjusted operating profit up 9.8% to £2.5 billion. Haleon brands include Biotene mouthwash, Polygrip for dentures, Advil pain relief and Tums antiacids. Shares in the company, once owned by GSK (LSE:GSK), were up 6.3% for the month. 

In the utility sector, British Gas owner Centrica (LSE:CNA) outlined annual results for 2024 that broadly matched City forecasts, with the supplier of gas and electricity in the UK and Ireland increasing shareholder returns. 

A new £500 million share buyback added to its ongoing £300 programme. A total dividend of 4.5p per share for 2024 was 13% higher than in 2023. Centrica expects to raise the total 2025 dividend to 5.5p, with a commitment to increase the payment to reach twice earnings cover by 2028, implying a potential payment of 8p per share. Shares in the FTSE 100 company improved 5% last month.

Within the FTSE 250 index, energy industry focused engineer John Wood Group (LSE:WG.) offered some reassurance regarding an ongoing audit review of its accounts by Deloitte, but outlined 2025 forecasts below its own previous November estimates.

Wood operates across the three divisions of projects, laying new pipelines for example; operations, maintaining customer facilities; and consultancy. Its shares fell 49% during February and are down by more than 70% over the last year. However, the company has received a bid approach from the UAE's Sidara, although there is no clue as to whether a deal with happen or at what price. 

Housebuilder Crest Nicholson Holdings (LSE:CRST) reported adjusted profits broadly matching City estimates, although with management’s year ahead profit forecast shy of City hopes.

Under relatively new head Martyn Clark, adjusted 2025 profit is forecast to come in at around £33 million compared with analyst estimates of £34.5 million. Crest constructs a mixture of houses, flats, and some commercial premises largely across the southern half of England and the Midlands. Crest shares fell 13% during February. 

More favourably, engineering and defence focused Babcock International Group (LSE:BAB) raised its sales and profit expectations given continuing strong demand for nuclear and marine services. 

The FTSE 250 company now expects full-year sales to the end of March of around £4.9 billion, driving profits above current City estimates. Growing demand for the building and decommissioning of civil sector nuclear facilities continues to contribute to performance. Babcock shares climbed 25% in February. 

Fellow defence company Chemring Group (LSE:CHG) also delivered a positive trading update. The maker of countermeasures used by military jets to fool missiles outlined a record order book as well as a new £40 million share buyback programme. 

Chemring continues to target annual revenues of £1 billion by 2030, potentially up from 2024’s £510 million. Shares for the Hampshire headquartered company rose 17% over the month. 

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In the US, Google owner Alphabet Inc Class A (NASDAQ:GOOGL) detailed sales and earnings roughly in line with Wall Street forecasts but with capital expenditure or investment for 2025 much higher.

Planned investment for the year ahead of $75 billion on items including servers, datacentres and artificial intelligence (AI) products, comfortably exceeded Wall Street expectations of around $60 billion. The tech giant’s update came just days after China start-up DeepSeek announced a new AI product. Alphabet shares fell 17% in February, outpacing a near 4% loss for the tech heavy Nasdaq Composite index. 

Fast food titan and Dow Jones company McDonald's Corp (NYSE:MCD) detailed better-than-expected International sales, countering a fall for its home US division. 

Group-wide fourth-quarter comparable sales improved 0.4%, beating analyst forecasts for a 0.9% decline. McDonald’s shares rose 7% in February, outperforming a 1.7% retreat for the Dow Jones index over the month.

Finally, Warren Buffett's Berkshire Hathaway Inc Class B (NYSE:BRK.B) conglomerate announced a jump in profits led by gains for insurance, with group cash held hitting yet another record of $334.2 billion (£264 billion).

Operating profit for the final quarter of 2024 climbed 71% to $14.5 billion, driven by an increase in insurance underwriting profit to $3.4 billion, up from $848 million in Q4 2023. Berkshire shares rose 10% in February. That’s in contrast to a 1.4% retreat for the S&P 500 index.