Trifast (TRI) H2 2025 earnings summary

Executive summary

• Achieved strong FY 2025 performance and significant earnings growth, driven by strategic self-help initiatives in margin management, focused growth, operational efficiency, and organizational effectiveness.

• Delivered 300 basis points improvement in gross margin and increased EBIT margin to 6.8%, with a 30% rise in EBIT to GBP 15.6 million.

• Completed the recover phase of transformation, achieving £3m in annualized cost savings and strengthening the balance sheet.

• Maintained dividends at prior year levels to support long-term growth and margin enhancement.

• Focused on three core markets: automotive, smart infrastructure, and medical equipment, with notable progress in smart infrastructure.

Financial highlights

• Revenue for FY 2025 was GBP 227.4 million, a 4.4% decline year-over-year, mainly due to the sale of the Norwegian operation and exit from low-margin customers.

• Gross margin rose by 300 basis points to 28.4%; EBIT increased 30% to GBP 15.6 million, with EBIT margin at 6.8%.

• Underlying profit before tax increased by 69%; underlying diluted EPS doubled to GBP 0.0431.

• Achieved GBP 3 million in annualized savings from operational improvements.

• Net debt reduced to GBP 17.4 million, leverage below 1.0x EBITDA, and cash conversion at 100.2%.

Outlook and guidance

• FY 2026 faces significant macroeconomic headwinds, including U.S. trade tariffs and a weakening U.S. dollar.

• Q1 FY 2026 revenues are behind expectations, especially in automotive.

• Confident in continued margin growth and on track to achieve medium-term double-digit EBIT margin target.

• FY26 priorities include margin management, focused growth in US and Asia, operational efficiency, and organisational effectiveness.

• Actively pursuing bolt-on acquisitions in target markets and regions.