Avon Technologies (AVON) Trading update summary

Strategy and financial ambitions

• Strategy: Improve, Grow, Compound, using the Business Improvement System to drive continuous improvement, fund growth and selectively acquire protection technology businesses.

• Standalone organic plan targets annual revenue growth above 5% CAGR, adjusted operating margin of 16–18% and annual EPS growth above 10%.

• Increasing inventory turns above 5x is expected to support FCF above $175m over three years.

• Five-year targets include revenue above $600m, further EPS accretion through disciplined capital deployment and ROIC above 18%.

FY26 trading update

• Order book rose significantly since the half-year results; Avon Protection received new European orders through the NSPA programme, while Team Wendy order book grew materially in H2.

• Team Wendy secured the largest share of the recent NG IHPS order, strong ACH Gen II volumes, new US Air Force orders and an Australian Defence Force programme renewal with its initial annual order; both businesses enter FY27 with very good visibility.

• North American commercial demand supported Avon Protection; Team Wendy production stabilised at target levels, contributing to a significant H2 operating margin improvement.

• FY26 revenue growth expected at ~12.5% (FY25: 13.8%); adjusted operating margin, including beneficial one-offs, comfortably above the 14–16% guided range (FY25: 12.8%).

• ROIC expected significantly above guidance of >17%; year-end net debt excluding leases ~ $34m, full-year cash conversion above 85% and leverage below 0.5x.