Trifast (TRI) H2 2026 earnings summary

Executive summary

• FY 2026 marked the first year of the 'rebuild' phase, with strategic pivots toward higher growth sectors and geographies, focusing on higher-value, design-led solutions and supply chain integration, reducing automotive exposure and increasing Smart Infrastructure and Medical segments.

• Margin expansion achieved through disciplined execution, pricing power, and operational efficiency, despite a 7.3% revenue decline year-over-year.

• Strong cash generation and balance sheet improvements enabled net debt reduction to £16 million, leverage at 0.75x, and supported a progressive dividend increase to £1.9 per share.

• Strategic focus on engineering solutions and supply chain simplification now drives 60% of revenue, with Smart Infrastructure and Medical segments growing.

• Underlying EBIT rose to £16.3 million, EBIT margin up 110 basis points to 7.8%, and underlying diluted EPS increased by 2.15p to 6.46p.

Financial highlights

• Revenue: £207 million (CER £207.1m), down 7.3% year-over-year; gross margin up 170 basis points to 30%.

• Underlying EBIT: £16.3 million, up 9.4%; EBIT margin: 7.8%, up 110 basis points.

• Net debt reduced to £16 million; leverage at 0.75x, down from 0.97x.

• Underlying diluted EPS increased to 6.46p.

• Dividend increased to £1.9 per share.

Outlook and guidance

• FY 2027 expected to continue momentum, with H1 similar to FY 2026 and growth weighted to H2; trading in line with Board expectations.

• Focus on Smart Infrastructure, Medical, North America, and Asia for growth, with continued investment in technology (Project Ignite) and targeted bolt-on acquisitions.

• Clear path to >10% EBIT margin in the medium term.

• Confident in further earnings growth, margin improvement, and cash generation.