UK's TT Electronics H1 adjusted operating profit rises 37% on cost cuts
UK's TT Electronics H1 adjusted operating profit rises 37% on cost cuts
Overview
UK engineered electronics firm's H1 organic revenue fell 2.7% yr/yr, but grew 4% excluding one-offs
Adjusted operating profit rose 37% yr/yr, driven by operational improvements and cost reduction
Company expects FY2026 adjusted operating profit to be ahead of company-compiled market expectations
Outlook
Company expects revenue to return to organic growth in H2 2026, supported by strong order book
Full-year cash conversion expected in the range of 70–80%, supporting further deleveraging
Result Drivers
OPERATIONAL ACTIONS - Improved profitability and margin expansion attributed to turnaround of Cleveland facility and closure of Plano site
COST REDUCTION - Substantial completion of cost reduction programme, with expected net savings during 2026
ORDER INTAKE - Strong order intake across divisions, supported by sales transformation initiatives
Company press release: ID:nRSB9904Sa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Adjusted Organic Revenue |
| GBP 228.1 mln |
|
H1 Adjusted EBIT |
| GBP 18.5 mln |
|
H1 Adjusted Pretax Profit |
| GBP 15.8 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy"
Wall Street's median 12-month price target for TT electronics PLC is GBp145.00, about 7.4% above its September 1 closing price of GBp135.00
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
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Sept 1 - UK's Pennant International H1 revenue rises on training systems contracts
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(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.)