Coats Group plc reported 2025 revenue of $1,465 million, broadly flat organically, with adjusted basic EPS of 9.3c, slightly below last year as higher interest costs offset EBIT growth. The market reacted positively, with shares rising around 9-10% after the results and upgraded margin and cash flow targets.
Coats Group delivered FY2025 revenue of $1.465 billion (+2% reported), with adjusted EPS of 9.3 cents meeting market expectations. Operating margin expanded 80bps to a record 19.8%, and free cash flow hit an all-time high of $160 million. Shares surged 8.81% on March 5, 2026, touching a new 52-week high of 97.10 GBX following the results announcement and upgraded medium-term targets.
About Coats Group plc
Coats Group plc (Ticker: COA on the London Stock Exchange; CGGGF OTC) is a British multinational and the world’s leading Tier 2 manufacturer of industrial thread and footwear components. Founded in 1755 in Paisley, Scotland, Coats is one of the oldest continuously operating companies in the world, with a heritage spanning over 270 years.
Headquartered in London, UK, Coats is a constituent of the FTSE 250 Index and the FTSE4Good Index. The company provides essential materials, components, and software solutions for the apparel and footwear supply chains, serving customers in over 100 countries across approximately 50 countries of operations.
As of March 6, 2026, Coats commands a market capitalization of approximately £1.82 billion (~$2.42 billion), with an estimated P/E ratio of 16.7x for FY2025 and 14.7x for FY2026. The company employs approximately 19,000 people worldwide and offers a dividend yield of approximately 2.57%. In October 2025, Coats completed the landmark acquisition of OrthoLite (premium insole manufacturer) for an enterprise value of $770 million, reshaping its portfolio into two streamlined divisions: Apparel and Footwear.
Top Financial Highlights
- Total revenue reached $1,465 million, reflecting a 2% reported increase, 3% growth at constant exchange rates (CER), and flat organic growth.
- Adjusted EBIT totaled $290 million, up 7% reported, or 3% organic CER, highlighting strong operational performance.
- Adjusted EBIT margin improved to 19.8%, up 80 basis points year-over-year, reflecting enhanced operational efficiency.
- Adjusted basic EPS was 9.3 cents, in line with market expectations, though slightly down from 9.7 cents in 2024.
- Reported EBIT was $241 million, compared to $224 million in 2024, indicating continued profit growth.
- Reported basic EPS was 6.8 cents, up from 6.7 cents in 2024, reflecting steady earnings growth.
- The company achieved record free cash flow of $160 million pre-dividends, exceeding the combined free cash flow from the prior decade.
- Apparel division revenue was $769 million, up 1% CER, with an EBIT margin of 20.2%, reflecting a 60 basis point improvement.
- Footwear division revenue totaled $440 million, a 2% decline in organic CER, but with an EBIT margin of 23.9%, improving by 40 basis points.
- Performance materials revenue was $256 million, flat in organic CER, with an EBIT margin of 11.3%, showing margin improvement.
- OrthoLite contribution was $11 million in operating profit, achieved just 2 months post-acquisition.
- Net debt stood at $815 million, with a leverage ratio of 2.2x EBITDA, expected to fall below 2.0x by the end of 2026.
- The total dividend was 3.28 cents per share, representing a 5% year-over-year increase.
- Capital expenditure for the quarter was $32 million, with full-year guidance for $40–$45 million in 2026.
- Revenue from 100% recycled thread grew by 43% CER to $554 million, reflecting strong demand for sustainable materials.
Beat or Miss?
Coats Group’s FY2025 results were broadly in line with market expectations, with the company comfortably outperforming its declining core markets (estimated down 3-5%). The upgraded medium-term targets and record cash generation drove the positive market reaction.
| Metric | FY2025 Reported | Expectation/Prior Year | Analysis |
| Revenue | $1,465m | $1,433m (FY2024) | +2% reported; flat organic but outperformed markets down 3-5% |
| Adjusted EBIT | $290m | $272m (FY2024) | +7% YoY; +3% organic CER – beat expectations |
| EBIT Margin | 19.80% | 19.0% (FY2024) | +80bps expansion; within upgraded target range |
| Adjusted EPS | 9.3c | ~9.3c (consensus) | In line with expectations; higher EBIT offset by financing costs |
| Free Cash Flow | $160m | $2m (FY2024) | Record high – exceeded combined prior decade FCF |
| Net Debt | $815m | Expected post-OrthoLite | In line; leverage at 2.2x as guided |
| Dividend | 3.28c (full-year) | 3.12c (FY2024) | +5% increase; supported by strong cash generation |
What Leadership Is Saying?
CEO — David Paja (Strategy & Vision)
“2025 was a transformational year for Coats. We achieved record profit and cash generation, reshaped the portfolio for accelerated growth and reorganised the Group for simplicity. As a result, we have upgraded our medium-term targets, including c.$1bn of free cash, and look at 2026 with confidence.”
“We have demonstrated once more our ability to gain market share, reflecting the benefits of differentiators that our competitors cannot match. Our new target, organic adjacencies, have added 1 percentage point to growth at group level.”
CFO – Hannah Nichols (Financial Performance)
“The group generated $160 million of free cash flow pre-dividends, reflecting the powerful dynamics of high margins and low capital intensity and timing benefits from the OrthoLite acquisition.”
“Revenue was $1.46 billion, flat on an organic constant exchange rate basis, comfortably outperforming our core apparel and footwear end markets, which we estimate were down low to mid-single-digit for the full year. EBIT was $290 million, in line with expectations and up 3% on an organic CER basis.”
Historical Performance
FY2025 vs. FY2024
| Category | FY2025 | FY2024 | Change (%) |
| Revenue | $1,465m | $1,433m* | +2.2% |
| Adjusted EBIT | $290m | $272m* | +6.6% |
| Adjusted EBIT Margin | 19.80% | 19.00% | +80bps |
| Reported EBIT | $241m | $224m | +7.6% |
| Adjusted Basic EPS | 9.3c | 9.7c | −4.1% |
| Reported Basic EPS | 6.8c | 6.7c | +1.5% |
| Free Cash Flow | $160m | $2m | 7900% |
| Net Debt | $815m | $449m | +81.5% (OrthoLite acquisition) |
| Total Dividend | 3.28c | 3.12c | +5.1% |
| Employees | ~19,000 | ~16,000 | +18.8% (OrthoLite) |
Key observations
Revenue growth was modest on a reported basis due to FX headwinds and the divestment of Americas Yarns, but the underlying quality improved markedly. The dramatic spike in free cash flow reflects the end of UK pension contributions (£100m in 2024), completion of strategic restructuring projects, and the cash-generative profile of OrthoLite. EPS declined slightly despite higher EBIT due to elevated interest costs from the pension buy-in and dilution from the July 2025 equity placing used to fund the OrthoLite acquisition.
Competitor Landscape
Coats vs. Key Peers
Coats operates in the industrial thread and textile components market, where its primary competitors include Elevate Textiles (American & Efird/Gütermann), AMANN Group, and niche players like DuPont (technical threads) and Fil-Tec. The table below provides a high-level comparison based on available data.
| Metric | Coats Group plc | Elevate Textiles (A&E) | AMANN Group |
| Headquarters | London, UK | Charlotte, NC, USA | Bönnigheim, Germany |
| Founded | 1755 | 1891 (A&E); 2019 (Elevate) | 1854 |
| Est. Revenue | $1,465m (FY2025) | ~$500–750m (est.) | ~€230m (est.) |
| Employees | ~19,000 | ~15,000 | ~2,700 |
| Est. Market Share (thread) | ~17% | ~10–12% (est.) | ~10% |
| Ownership | Public (LSE: COA) | Private (new ownership post-2025 recapitalization) | Private |
| EBIT Margin | 19.8% | N/A (private) | N/A (private) |
| Key Strengths | Global scale, sustainability leadership, OrthoLite acquisition, digital solutions | Multi-brand portfolio (A&E, Burlington, Cone Denim, Gütermann) | Premium quality, wide product range, automotive focus |
Competitive context
Direct YoY financial comparisons for Elevate Textiles and AMANN Group are unavailable as both companies are privately held. Elevate Textiles completed a significant recapitalization in 2025, eliminating $394 million of existing debt and injecting $100 million of new capital under new ownership. This signals financial stress relative to Coats’ strengthening position. AMANN Group continues to serve as a strong regional competitor, particularly in European automotive and technical thread markets.
How the Market Reacted?
Shares of Coats Group increased by 8.81% on March 5, 2026, following the results announcement. The stock rose from an opening price of 87.40 GBX to close at 95.10 GBX, reaching an intra-day high of 97.10 GBX, marking a new 52-week high. This strong rally was driven by a combination of record free cash flow, upgraded medium-term margin targets (ranging from 21-23%, up from 19-21%), and a raised five-year free cash flow target of approximately $1 billion.
Analyst sentiment remains overwhelmingly positive, with eight unanimous buy ratings and no hold or sell recommendations. The average analyst target price stands at 115.86 GBX, implying an upside of approximately 24% from the March 6, 2026, trading price of 93 GBX. The market is reflecting confidence in Coats’ transformed portfolio, supported by the OrthoLite acquisition and margin improvements, which position the company for sustained double-digit EPS growth in the medium term.
