Avon Technologies (AVON) H2 2026 earnings summary

Executive summary

• FY26 completed the transformation phase, leaving a stronger operating platform and a higher-quality business for the next strategy: improve, grow and compound.

• Revenue was $353.7m, up 12.7% reported; adjusted operating profit rose 50.6% to $60.7m and adjusted operating margin reached 17.2%.

• Order intake was $353.6m and the closing order book was $263m, providing visibility into FY27 and beyond.

Financial highlights

• Revenue grew 12.7% reported and 12.1% at constant currency, with both businesses growing.

• Adjusted profit before tax rose 58.7% to $55.4m; adjusted profit increased 56.1% to $42.0m and adjusted basic EPS rose 57.1% to 143.3c.

• Free cash flow increased to $30.9m from $12.6m; adjusted EBITDA was $70.9m versus $51.5m.

• Total dividend per share rose 8.9% to 26.8c; the proposed final dividend increase was 10%.

• Cash conversion was 93%, and return on invested capital reached 27.6%.

Outlook and guidance

• FY27 revenue is expected to grow at a mid-single-digit rate, with growth in both businesses; Team Wendy helmet deliveries are expected to offset more normal Avon Protection filter volumes.

• FY27 adjusted operating margin guidance is 16–18%, reflecting continued Team Wendy improvements, partly offset by Avon Protection sales mix and non-recurrence of FY26 one-offs.

• FY27 free cash flow guidance is $50–60m, supported by completed transformation programmes, improved working-capital efficiency and lower pension contributions.

• Cumulative free cash flow target exceeds $175m over FY27–FY29; five-year targets include revenue CAGR above 5%, EPS CAGR above 10% and operating margin of 16–18%.