TT Electronics (TTG) H1 2026 earnings summary

Executive summary

• Profitability and margin expansion were driven by strategic actions, operational execution, and leadership changes, including a new CFO, Chairman, and Senior Independent Director.

• Adjusted operating profit rose 37% year-over-year to £18.5m, with margin up 230bps to 8.1%.

• Divisional realignment, cost reduction, and sales transformation initiatives delivered tangible progress, with Components division returning to profitability and Cleveland turnaround completed.

• Board expects full-year adjusted operating profit to exceed current market expectations.

• Statutory operating profit reached £9.7m, reversing a £3.0m loss in H1 2025.

Financial highlights

• Revenue was £228.1m, down 2.7% year-over-year due to one-off factors, but underlying sales grew ~4%.

• Adjusted operating profit: £18.5m (up 37%); adjusted margin: 8.1% (up 230bps); adjusted EPS: 5.7p (up from 1.9p).

• ROIC improved to 17.7% (up 770bps); leverage at 1.1x, net debt at £52.0m.

• Free cash flow was nil in H1 due to working capital outflows; cash conversion at 42%.

• Book-to-bill ratio at 112%, with order book up 20% year-over-year to £550m.

Outlook and guidance

• Adjusted operating profit for FY2026 expected ahead of consensus; revenue to return to organic growth in H2.

• Leaner operating model and cost reduction programme to drive continued margin expansion and >£6m annualised savings from FY2027.

• Full-year cash conversion targeted at 70–80%, supporting further deleveraging.

• No dividend expected for 2026; policy under review for future periods.