London · Delayed Price · Currency is GBP · Price in GBX TT Electronics Earnings Call Transcripts
Fiscal Year 2025
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Delivered stable 2025 results with improved margins, strong cash flow, and reduced net debt. Operational turnaround in North America and structural growth in aerospace and defense offset EMS and Asia softness. 2026 guidance is stable, with continued margin focus and cautious outlook.
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Operational turnaround in North America and strong European aerospace/defense growth offset revenue and profit declines from order delays and restructuring. Full-year profit is expected to meet market expectations, with H2 profitability driven by regional improvements and cost actions.
Fiscal Year 2024
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2024 saw revenue and profit declines due to North American challenges and macro uncertainty, but strong cash flow, margin gains in Europe and Asia, and operational improvements were achieved. Dividend is paused, and a strategic review of the components business is underway.
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Significant progress on Project Dynamo has driven increased cost savings, operational improvements, and a stronger outlook, despite North American headwinds. Strong order intake and robust performance in Europe and Asia support unchanged full-year guidance and ambitious medium-term targets.
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North American operations are facing significant operational inefficiencies and weaker component order intake, leading to a downward revision of 2024 revenue and profit guidance. Remedial actions are underway, with confidence maintained in achieving a 12% operating margin by 2026.
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Revenue declined 8% at constant currency but grew 1% like-for-like, with strong order intake up 15% year-over-year. Project Dynamo identified £17m in cost savings, supporting unchanged full-year guidance and improved H2 outlook. Aerospace and defense, Europe, and Asia showed strong performance.