TT Electronics (TTG) Trading Update summary

Trading performance

• Group revenue declined 5.5% organically, with European strength offset by weakness in Asia and North America.

• Book to bill ratio was 101%, supported by Aerospace and Defence demand in Europe.

• North American softness and US order deferrals impacted Asia due to tariff uncertainty.

Operational initiatives

• Strategic review of the Components business is progressing, with separate management from July 2025.

• Decision made to close Plano, Texas operations, which had a £5.7m operating loss in 2024; closure expected by year-end.

• Operational improvement plan underway at Cleveland, Ohio, focusing on contract profitability and efficiency.

Financial outlook and guidance

• Adjusted operating profit for 2025 expected in line with previous guidance (£32m–£40m), with consensus at £34.7m.

• Profit and cash collection are forecast to be weighted to the second half, likely resulting in June 2025 leverage slightly above 2x.