TT Electronics (TTG) H1 2025 earnings summary

Executive summary

• Strong European growth in Aerospace & Defence offset by North American challenges and Asian order delays; CEO transition completed and interim CFO appointed.

• Significant operational turnaround progress, including closure of the loss-making Plano site, Cleveland improvement plan, and strategic review with separate management for components business.

• Net debt reduced with strong cash conversion at 135%; focus on stabilizing operations and business improvement.

• Full-year adjusted operating profit expected to meet market expectations.

Financial highlights

• Organic revenue declined 6% year-over-year to £237.9m; excluding Plano, down 4.3%.

• Adjusted operating profit fell 29.7% to £13.0m; margin at 5.5%.

• Adjusted EPS declined to 1.9p due to lower profit and higher tax rate; statutory EPS loss of 5.8p.

• Free cash flow was £6.4m, a significant improvement from a £7.8m outflow last year; cash conversion at 135%.

• Net debt reduced to £73.3m (ex-leases) or £87.7m total; leverage at 1.9x.

Outlook and guidance

• Full-year adjusted operating profit expected in line with market expectations; improvement actions in North America and European strength to drive H2 profitability.

• North America expected to return to profitability in H2, though loss-making for the full year.

• FX headwinds expected to impact revenue (-2%) and profit (-3%) vs 2024.

• Capex and development spend guided at £10–13m; working capital broadly flat.

• No interim dividend for 2025 due to macroeconomic uncertainty.