UK's Coats Group meets 2025 revenue expectations, expects organic growth in 2026

Coats

05/03/2026 07:26

Corrects second bullet of Overview section to say company beat, not missed, FY adjusted operating profit estimates; Corrects adjusted operating profit and adjusted free cash flow numbers in Key Details table

Overview

UK apparel components supplier's 2025 revenue met analyst expectations

Adjusted operating profit for 2025 beat analyst estimates

Company completed acquisition of OrthoLite, enhancing footwear market position

Outlook

Coats expects organic growth in 2026 despite market uncertainty

OrthoLite to outperform footwear market due to technology penetration

Coats anticipates modest organic margin improvement in 2026

Result Drivers

PORTFOLIO TRANSITION - Co's exit from non-core Americas Yarns business improved margins by 100bps and enhanced growth potential

ORTHOLITE ACQUISITION - Acquisition of OrthoLite accelerated strategy in footwear components, supporting revenue and cash generation

RECYCLED THREAD GROWTH - Revenue from 100% recycled threads grew 43% to $554m, reflecting sustainability focus

Company press release: ID:nRSE4037Va

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Meet
$1.47 bln
$1.47 bln (7 Analysts)
FY Adj. Operating Profit
Beat
$290 mln
$263.43 mln (5 Analysts)
FY Adj. Basic EPS
$0.093
FY Adj. Free Cash Flow
$184.3 mln
FY Adjusted Net Debt
$815 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the textiles & leather goods peer group is "buy"

Wall Street's median 12-month price target for Coats Group PLC is GBp115.00, about 31.6% above its March 4 closing price of GBp87.40

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)