UK's Avon Technologies FY26 adjusted profit beats estimates on strong demand, cost cuts
Overview
UK protective equipment maker's preliminary FY26 revenue rose 12.7%, slightly beating analyst expectations
Adjusted EBIT and pretax profit for FY26 beat analyst expectations
Company completed STAR transformation, driving improved operational performance and profitability
Outlook
Avon Technologies expects mid-single-digit revenue growth in FY27
Company expects FY27 adjusted operating profit margin in the 16-18% range
Company sees FY27 free cash flow of about $50-60m
Result Drivers
STRONG DEMAND - Co said revenue growth was driven by record filter volumes in Avon Protection and higher production rates in Team Wendy
TRANSFORMATION BENEFITS - Co attributed margin and profit growth to operational improvements and productivity gains from the STAR transformation programme
COST SAVINGS & ONE-OFFS - IT transformation, cost control, and one-off items such as US tariff refunds contributed to profit growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Slight Beat* | $353.70 mln | $350.29 mln (8 Analysts) |
FY Adjusted EBITDA | Beat | $70.90 mln | $68.96 mln (8 Analysts) |
FY Adjusted EBIT | Beat | $60.70 mln | $57.24 mln (5 Analysts) |
FY Adjusted Pretax Profit | Beat | $55.40 mln | $53.09 mln (8 Analysts) |
FY Basic EPS | $1.08 | ||
FY Orders | $353.60 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for Avon Technologies PLC is GBp2,500.00, about 4.2% above its November 9 closing price of GBp2,400.00
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 17 three months ago
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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.)