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(Sharecast News) - TT Electronics lifted its full-year profit outlook on Wednesday as it hailed "strong" first-half profit growth and margin expansion.
In the six months to the end of June, operating profit rose 37% to £18.5m and pre-tax profit was 85.9% higher at £15.8m. Revenue dipped 2.7% to £228.1m but was up 4% excluding the impact of cessation of production at the Plano site, and the £14m year-on-year revenue reduction from the previously reported EMS customer transfer from TT Suzhou to TT Kuantan.
The adjusted operating margin was 230 basis points higher at 8.1%, driven by the benefits of operational actions taken in 2025 in EMS and Components, the company said.
It now expects 2026 adjusted operating profit to be ahead of current market expectations of between £32.6m and £38.5m, while revenue is expected to return to organic growth in the second half, supported by a strong order book.
TT Electronics also said cash generation is expected to strengthen "significantly" in the second half, with full-year cash conversion expected to be 70% to 80%, supporting further deleveraging.
Chief executive Eric Lakin said: "The first half demonstrates that the actions we took in 2025 are starting to deliver tangible results. With the business now on a stronger operational footing, our focus has moved firmly to execution and delivery, and I am pleased to report a significant improvement in profitability and margin, with adjusted operating profit up 37% year-on-year.
"Order intake has been strong across all three divisions, and we have secured several material contract awards with blue-chip customers across multiple sectors including aerospace, defence, life sciences and the semiconductor supply chain. That gives us confidence in a return to revenue growth in the second half and, together with the benefits of our cost reduction programme, the board now expects adjusted operating profit for the year to be ahead of current market expectations."
At 1016 BST, the shares were up 10.6% at 151.95p.
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