TT Electronics plc (LSE: TTG) reported FY2025 adjusted EPS of 6.9p (down 37.3% YoY due to a spiked US tax rate) on total revenue of £481.4 million (down 7.6% statutory, down 2.7% organic). Adjusted operating profit rose 2.2% organically to £37.2m. Shares jumped +5.38% on results day, March 25, 2026, as investors welcomed the balance sheet turnaround and improved second-half trajectory.
About TT Electronics plc
TT Electronics plc (LSE: TTG) is a global engineer and manufacturer of electronic solutions for performance-critical applications, incorporated on 16 January 1906 and headquartered in Woking, Surrey, United Kingdom. The company serves structurally high-growth end markets including Aerospace and Defence (A&D), Healthcare, Automation and Electrification (A&E), and Distribution, with design and manufacturing facilities across the UK, North America, and Asia.
TT Electronics employs approximately 4,000+ people globally across 19 sites. As of March 25, 2026, the market capitalisation stood at approximately £195 million (circa GBX 109.60 per share). The company trades at a forward P/E of 11.8x for 2026 estimates, reflecting the market’s cautious optimism about the ongoing operational turnaround. No dividend was paid in respect of FY2025, a continuation of the pause initiated to strengthen the balance sheet. The company formerly operated as TT Group plc until 2000 and has its roots in W. Tyzack Sons and Turner, a Sheffield toolmaker.
Top Financial Highlights
- Revenue of £481.4 million (statutory), down 7.6% from £521.1m in 2024, reflecting FX headwinds of £10.1m and the absence of £16.2m from divested Cardiff, Hartlepool, and Dongguan sites
- Organic revenue declined 2.7% to £481.4m versus an organic comparable of £494.8m in 2024
- Adjusted operating profit up 2.2% organically to £37.2 million (2024: £36.4m)
- Adjusted operating margin improved 30 basis points to 7.7% (2024: 7.4%)
- Adjusted profit before tax rose 5.5% to £28.7 million (2024: £27.2m)
- Adjusted basic EPS of 6.9p (2024: 11.0p), down 37.3% due to elevated adjusted effective tax rate of 57.1% (2024: 28.3%) driven by inability to recognise US deferred tax assets
- Statutory operating loss of £28.2 million (2024: £23.5m loss), after £65.4m of one-off charges predominantly relating to North American impairments and restructuring
- Statutory basic loss per share of 28.5p (2024: 30.2p loss), a 5.7% improvement
- Free cash flow of £29.9 million (2024: £27.7m), up 7.9%
- Cash conversion of 150% (2024: 117%), driven by £14.8m of inventory reduction
- Net cash from operating activities of £50.0 million (2024: £51.2m)
- Net debt (excluding lease liabilities) reduced sharply to £50.3 million (2024: £80.1m), a reduction of 37.2%
- Leverage improved to 1.1x (2024: 1.8x), at the lower end of the Group’s target range
- Return on invested capital improved to 13.3% (2024: 10.0%), up 330 basis points
- Book-to-bill ratio improved to 109% (2024: 102%)
- No dividend declared for FY2025 (2024: 6.9p); Board to keep shareholder returns under review
Beat or Miss?
No formal analyst consensus was publicly reported in the earnings release. The company had guided for adjusted operating profit in line with the then-market consensus of approximately £33.7 million as at its November 2025 trading update. TT delivered £37.2 million adjusted operating profit, materially ahead of that earlier guidance figure, driven by stronger-than-expected H2 execution and last-time-buy activity at the Plano site.
| Metric | Reported | Prior Guidance / Expected | Difference / Analysis |
| Adjusted Operating Profit | £37.2m | ~£33.7m (Nov 2025 consensus) | Beat by ~£3.5m; driven by Plano last-time buys and H2 recovery |
| Organic Revenue Growth | -2.70% | Broadly flat guidance | In line with expectations |
| Adjusted Operating Margin | 7.70% | 7.4% (FY2024 base) | +30bps improvement |
| Adjusted EPS | 6.9p | N/A | Down 37.3% YoY due to higher US tax rate; normalised EPS ~12.0p |
| Net Debt (ex-leases) | £50.3m | N/A | Reduced £29.8m versus year-end 2024 |
| Cash Conversion | 150% | N/A | Well ahead of 117% in 2024 |
| Free Cash Flow | £29.9m | N/A | +7.9% YoY improvement |
What Leadership Is Saying?
CEO Eric Lakin: “2025 was a year of transition for TT Electronics, and I am pleased to report an improved financial position of the Group in my first set of annual results as Chief Executive Officer. During the year, we addressed operational challenges, strengthened accountability and restored control across the business, resulting in a materially improved performance in the second half. We enter the new financial year with a clearer strategic direction and a stronger platform for growth, underpinned by our four priorities of divisional realignment, cost reduction, sales transformation and portfolio optimisation. Whilst we are mindful of the current elevated geopolitical uncertainty, we remain confident in our ability to deliver further operational and financial progress over time.”
Interim CFO Richard Webb: “Significantly, our cash generation was exceptionally strong. We have markedly decreased our net debt and reinforced our balance sheet.”
The CFO elaborated that net debt (excluding leases) was reduced to £50.3 million from £80.1 million at the end of 2024, with leverage falling to 1.1x – at the lower end of the Group’s target range. Richard Webb joined TT Electronics in May 2025 as Interim CFO, having previously served as Group CFO at Ultra Electronics for 12 years.
Historical Performance
The table below compares the FY2025 outturn against FY2024 on key adjusted and statutory metrics.
| Category | FY2025 | FY2024 | Change (%) |
| Revenue (Statutory) | £481.4m | £521.1m | -7.60% |
| Revenue (Organic) | £481.4m | £494.8m | -2.70% |
| Adjusted Operating Profit | £37.2m | £36.4m (organic) | 2.20% |
| Adjusted Operating Margin | 7.70% | 7.40% | +30bps |
| Adjusted Profit Before Tax | £28.7m | £27.2m | 5.50% |
| Adjusted EPS | 6.9p | 11.0p | -37.30% |
| Statutory Operating Loss | (£28.2m) | (£23.5m) | -20.00% |
| Statutory Basic Loss Per Share | (28.5p) | (30.2p) | 5.70% |
| Free Cash Flow | £29.9m | £27.7m | 7.90% |
| Net Debt (ex-leases) | £50.3m | £80.1m | -37.20% |
| Leverage | 1.1x | 1.8x | -37.80% |
| Return on Invested Capital | 13.30% | 10.00% | +330bps |
Segment Breakdown FY2025 vs FY2024 (Adjusted Revenue)
| Segment | FY2025 | FY2024 (Organic) | Change |
| Aerospace and Defence | £152.8m | £136.4m | 11.70% |
| Healthcare | £107.8m | £112.6m | -4.30% |
| Automation and Electrification | £140.1m | £161.1m | -13.00% |
| Distribution | £80.7m | £84.7m | -4.70% |
Regional Breakdown FY2025 vs FY2024 (Adjusted)
| Region | Revenue FY2025 | Revenue FY2024 | Op. Profit FY2025 | Op. Margin FY2025 | Change in Op. Profit |
| Europe | £144.4m | £146.3m | £22.1m | 15.30% | 16.90% |
| North America | £173.1m | £184.4m | £1.2m | 0.70% | +144.4% (from -£2.7m loss) |
| Asia | ~£164m | ~£190m | ~£13.9m | ~8.5% | -24% (approx.) |
Competitor Comparison
| Category | TT Electronics FY2025 | Chemring Group FY2025 (Oct YE) | Curtiss-Wright FY2025 (Dec YE) |
| Revenue | £481.4m (-7.6% statutory; -2.7% organic) | £497.5m (+2% YoY) | $3.5 billion (+12% YoY) |
| Operating Profit (Adj./Underlying) | £37.2m | £73.5m underlying | $651m adjusted |
| Operating Margin (Adj.) | 7.70% | 14.80% | 18.6% adjusted |
| Net Income / Profit After Tax (Adj.) | £12.3m | £48.2m | Record high |
| EPS (Adj./Basic) | 6.9p | 19.7p | $13.23 diluted adj. |
| Free Cash Flow | £29.9m | Strong (114% conversion) | $554m (111% conversion) |
| Net Debt / Leverage | 1.1x | Higher (£89m net debt) | Efficient balance sheet |
| Primary Markets | Aerospace, Defence, Healthcare, EMS | Countermeasures, Energetics, Sensors | Defence Electronics, Naval, Power |
TT Electronics trails its defence-focused peers on absolute margin, but the operational turnaround is narrowing the gap; the Group’s 7.7% adjusted margin compares favourably to its own trajectory and 2024 base. Curtiss-Wright’s record $3.5 billion in sales and 18.6% adjusted operating margin underscore the premium that scale and pure-play A&D positioning commands in the current geopolitical cycle. Chemring’s 14.8% underlying margin reflects its higher-value Countermeasures and Energetics mix.
How the Market Reacted?
TT Electronics shares (LSE: TTG) closed at approximately 109.60p on March 25, 2026, a gain of +5.38% on the day of the full year results announcement. The positive reaction reflected investor relief at the significant reduction in net debt to £50.3 million, with leverage improving to 1.1x from 1.8x, alongside cash conversion of 150% and free cash flow of £29.9 million.
The market’s tone was broadly constructive, with one headline characterising the results as TT Electronics “jumping” on a “stronger second-half” that drove both profit and cash gains. Prior to the announcement, the stock had traded in a range of 98p to 133p in the year to date, reflecting persistent investor uncertainty around North America, EMS softness, and the Cicor approach in the second half of 2025; the results and clear 2026 guidance helped reset sentiment in a positive direction.
