Avon Technologies (AVON) H2 2025 earnings summary

Executive summary

• Revenue and profitability grew rapidly in 2025, with EPS doubling since 2023 and a robust pipeline of new products fueling future growth.

• Transformation initiatives, including factory optimization and cost reductions, have strengthened the business and improved operational efficiency.

• Achieved strong revenue growth and margin expansion, with a fundamentally stronger business and consolidated footprint leading to a step change in cost profile.

• Increased organic growth investment across multiple programs and scalable platform targeting faster-growing markets.

• On track to meet or exceed all FY26 targets, with significant growth opportunities ahead.

Financial highlights

• Revenue increased by 13.8% year-over-year to $313.9m; closing order book up 16.2% to $262.8m.

• Adjusted operating profit rose 30.8% to $40.3m; adjusted operating profit margin improved by 130bps to 12.8%.

• Return on Invested Capital (ROIC) reached 18.6%, up from 13.7% last year.

• Cash conversion at 90% (down from 158% in FY24); leverage reduced to 0.86x.

• Adjusted basic EPS increased to 91.2c; total dividend per share at 23.3c.

Outlook and guidance

• FY26 guidance: high single-digit revenue growth, adjusted operating profit margin within 14-16%, transformation OpEx investment around $6m, and cash conversion over 80%.

• Firmly on track to meet or exceed all FY26 targets.

• Transformation investment to drop to $6 million in 2026, with benefits weighted to the second half.